Privia Health Group (NASDAQ:PRVA) raised its 2026 financial outlook after reporting growth in providers, patient attribution and adjusted earnings through the first nine months of the year. The company also announced a $36 million acquisition that will expand its Medicare value-based care footprint in 2027.
CEO Parth Mehrotra said the revised outlook puts all key financial metrics above the high end of the company’s initial guidance. Privia expects to reach 6,000 implemented clinicians by year-end, at the high end of its original provider guidance.
At the midpoint of the updated outlook, Privia expects 2026 practice collections to grow 13.1%, care margin to rise 16.3% and adjusted earnings before interest, taxes, depreciation and amortization to increase 23.9% from 2025. Value-based attributed lives are expected to grow 9.2% at the guidance midpoint.
Provider Growth Supports Earnings
Privia had 5,893 implemented providers at Sept. 30, up 12.2% from a year earlier and 249 from the second quarter, CFO David Mountcastle said. The company’s network served more than 6.3 million patients across 1,400 care centers.
For the first nine months of 2026, practice collections rose 12% to $2.91 billion, while adjusted EBITDA increased 21.9% to $114.7 million. Adjusted EBITDA represented 28.8% of care margin.
Mehrotra said Privia was on track to add more than 600 providers organically this year, compared with annual additions of roughly 200 to 400 providers five or six years ago. He cautioned that growth would not follow a straight line but said industry disruption could create opportunities to recruit practices.
The company served more than 1.67 million attributed lives in value-based arrangements across over 130 commercial, Medicare Advantage and Medicaid programs. Commercial attributed lives rose 11.8% to 966,000, while lives attributed to Centers for Medicare and Medicaid Services programs increased 59%, Mehrotra said.
Acquisition Adds Medicare Lives
Privia agreed to acquire American Choice Healthcare, a Medicare Shared Savings Program accountable care organization owned by Cano Health, for approximately $36 million in cash. The organization is expected to care for more than 36,000 attributed lives beginning in January 2027.
The acquisition will expand Privia Care Partners’ value-based care presence in 10 existing states and three new states. Privia expects minimal impact on its key 2026 metrics and a positive contribution to attributed lives and adjusted EBITDA in 2027.
Mehrotra said approximately 600 providers underlie the 36,000 lives and that many have longstanding relationships with the acquired organization. He said Privia plans to build density around those providers and apply lessons from its prior acquisition of an accountable care organization business from Evolent.
Separately, Privia will exit its Montana partnership with Surgery Partners effective January 2027. The partnership supports 69 providers and generates approximately $23 million in annual practice collections; Privia expects no material impact on 2027 adjusted EBITDA.
Mehrotra cited several factors in the decision, including the partnership’s scale and changing strategic priorities. He said the exit did not alter Privia’s interest in ambulatory surgery centers or related services.
Cash and Capital Allocation
Privia ended the third quarter with $446.3 million in cash and no debt. Mountcastle said the company expects at least $520 million in cash at year-end, including the American Choice transaction and assuming the 2025 Medicare Shared Savings Program settlement and related provider payments occur before year-end.
The company expects approximately 70% of full-year adjusted EBITDA to convert to free cash flow. Mehrotra and Mountcastle said Privia is targeting a 70% to 75% conversion rate on an ongoing basis as a cash taxpayer, though timing can cause fluctuations.
Mehrotra said acquisitions remain the preferred use of capital to compound the business, but the board also evaluates returning capital to shareholders. He said no formal return-of-capital plan had been announced.
The company’s reported results are preliminary until it files its third-quarter Form 10-Q with the Securities and Exchange Commission, said Robert Borchert, senior vice president of investor and corporate communications.
About Privia Health Group (NASDAQ:PRVA)
Privia Health Group, Inc is a physician-enablement company that partners with independent medical practices to support the delivery of coordinated, value-based care. The company provides an integrated platform designed to help physicians manage clinical, administrative and financial functions while maintaining ownership and control of their practices.
Its services include practice management, electronic health record and technology support, revenue-cycle management, payer contracting, population-health analytics, care-management programs and administrative assistance.
