Privia Health Q2 2026 Earnings: Revenue Rises 21% as EBITDA Margin Expands

Privia Health (NASDAQ: PRVA) reported Q2 2026 revenue of $632.6 million, up 21.4% year over year, while diluted EPS increased to $0.07 from $0.02. Net income attributable to Privia rose to $9.0 million, and adjusted EBITDA increased 29.1% to $37.4 million as provider and attributed-life growth supported scale despite pressure on gross margin.

Core earnings data

Revenue growth exceeded the increases in implemented providers and practice collections, while gross profit grew more slowly than revenue. Nevertheless, operating income and adjusted EBITDA expanded faster than the top line, reflecting improved leverage in platform and corporate costs.

GAAP net income increased much faster than adjusted net income, partly because of the low prior-year base and $3.3 million of other income recorded this quarter. Stock-based compensation remained significant at $19.4 million, compared with $18.8 million a year earlier.

Privia defines adjusted EBITDA margin as adjusted EBITDA divided by Care Margin, rather than revenue. Gross and operating margins above are calculated from the reported figures and are approximate.

Business and operating performance

Implemented providers increased 10.1% to 5,644, while value-based care attributed lives grew 19.2% to 1.647 million. Practice Collections, which include collections from non-owned medical groups and therefore differ from reported revenue, rose 12.4% to $970.0 million.

Fee-for-service patient care remained the largest revenue source, accounting for about 65% of quarterly revenue. It increased approximately 24.5% to $412.6 million. Capitated revenue rose about 26.0% to $95.2 million, shared savings increased approximately 14.8% to $68.9 million, and care management fees grew about 22.5% to $20.7 million.

Fee-for-service administrative services was the main source category that declined, falling approximately 5.4% to $33.2 million. The company did not provide a specific explanation for that decrease in the earnings release.

Platform leverage offset gross-margin pressure

Provider expense increased approximately 23.3% to $500.5 million, faster than revenue growth. That difference explains why gross profit rose only 14.3% and why gross margin declined by about 1.3 percentage points.

Below the gross-profit line, cost growth was more restrained. Cost of platform increased about 6.8%, while general and administrative expense rose approximately 5.7%. Platform Contribution consequently increased 20.1% to $69.0 million, and its margin expanded to 52.2% from 49.9%.

This operating leverage also lifted adjusted EBITDA margin to 28.3% from 25.2% and operating margin to approximately 1.9% from 0.6%. However, adjusted net income grew 18.7%, considerably less than the 236.7% increase in GAAP net income, showing that the headline GAAP growth rate was amplified by the prior-year comparison and items excluded from adjusted results.

First-half cash flow and balance sheet

The available cash-flow statement covers the first six months of 2026, not Q2 alone. Despite positive earnings, Privia used $48.4 million of operating cash during the period, compared with a $16.1 million operating outflow in the first half of 2025.

The largest working-capital use was a $172.4 million increase in accounts receivable, partly offset by a $71.0 million increase in provider liabilities. Accounts receivable reached $574.2 million at June 30, up from $400.9 million at the end of 2025, while provider liabilities increased to $541.4 million from $469.5 million.

Cash and cash equivalents ended the quarter at $412.2 million, down $67.5 million from year-end. Investing activities used $11.5 million, including $11.4 million for business acquisitions, while financing activities used $7.6 million.

Full-year 2026 guidance

Privia described its full-year outlook as raised across all key financial metrics. The explicit numerical increase was in attributed lives; most financial targets were repositioned toward the upper portions of the original ranges, while the implemented-provider target was unchanged.

The company expects approximately 70% to 80% of full-year adjusted EBITDA to convert to free cash flow, subject to the timing of its Medicare Shared Savings Program cash settlement. Guidance does not assume any new business-development activity, and forward-looking non-GAAP measures were not reconciled to their closest GAAP equivalents.

Recent insider transactions

The supplied insider summary reported 967,806 shares purchased and 862,110 shares sold over the preceding six months, resulting in net purchases of 105,696 shares across 41 transactions. However, the latest individual filings listed were concentrated in sales by CFO David Mountcastle and director Matthew Shawn Morris, alongside derivative-security exercises; these transactions do not by themselves establish insiders’ views of the company’s prospects.

The dataset did not provide share counts for these entries, so the reported transaction values are shown below.

Risks investors should monitor

• Gross-margin pressure: Provider expense grew faster than revenue in Q2, causing gross margin to decline even as downstream operating margins improved.
• Cash conversion and working capital: First-half operating cash flow was negative as receivables increased. The expected full-year free-cash-flow conversion also depends on the timing of the MSSP settlement.
• Guidance execution: Most updated financial targets were expressed as expected placement within existing ranges rather than new numerical ranges, making delivery near the upper portions of those bands an important measure of execution.
• GAAP and non-GAAP divergence: Stock-based compensation of $19.4 million exceeded quarterly GAAP net income and is excluded from adjusted earnings measures, making both accounting presentations relevant when assessing profitability.

Summary

Privia Health’s Q2 2026 results combined broad revenue growth, expansion in providers and attributed lives, and improved platform-level operating leverage. The central trade-off was that provider costs pressured gross margin while slower growth in platform and corporate expenses lifted operating and adjusted EBITDA margins. The next points to monitor are execution toward the upper portions of full-year guidance and whether first-half receivables growth reverses sufficiently to support the company’s expected free-cash-flow conversion.