Privia Health Raises 2026 Outlook as Adjusted EBITDA Grows 21.9%

Privia Health (Nasdaq: PRVA) raised its full-year 2026 outlook after nine-month adjusted EBITDA increased 21.9%, supported by double-digit growth in providers, attributed lives and practice collections. The physician-enablement company also announced a roughly $36 million acquisition that will expand its value-based care footprint in 2027, while outlining plans to exit a Montana partnership.

For the nine months ended September 30, implemented providers grew 12.2% from a year earlier, attributed lives increased 19.2% and practice collections rose 12.0%. Care Margin advanced 15.4%, while Platform Contribution increased 16.8%.

Adjusted EBITDA grew faster than those operating measures, rising 21.9%. Adjusted EBITDA represented 28.8% of Care Margin, compared with 27.2% in the prior-year period, and 3.9% of practice collections, up from 3.6%. Platform Contribution increased to 56.0% of Care Margin from 52.0%, while Care Margin rose to 7.2% of practice collections from 6.9%.

As of September 30, Privia’s network included 5,893 implemented providers across about 1,400 care-center locations. The platform covered more than 6.3 million patients and 1.67 million attributed lives in 25 states and Washington, D.C., including nine states where the company operates only value-based care programs. Privia reported more than 130 value-based care contracts, with approximately 711,000 government lives and 966,000 commercial lives.

Full-Year Outlook Increased

Privia now expects 2026 attributed lives of 1.675 million to 1.690 million, compared with its initial range of 1.550 million to 1.600 million. Practice collections are projected at $3.90 billion to $3.95 billion, above the original $3.65 billion-to-$3.75 billion range.

The company forecast GAAP revenue of $2.50 billion to $2.55 billion, Care Margin of $535 million to $540 million and Platform Contribution of $280 million to $285 million. Adjusted EBITDA is expected to range from $154 million to $157 million. Privia expects implemented providers to finish at the high end of its previous 5,900-to-6,000 outlook.

The guidance assumes no new business-development activity and includes 69 providers associated with Privia’s Montana operations. Management did not provide GAAP reconciliations for forward-looking non-GAAP measures, citing uncertainty around components including market-related assumptions and potential legal, advisory and tax costs.

Value-Based Care Acquisition

Privia acquired American Choice Healthcare MSSP, LLC, a wholly owned subsidiary of Cano Health, for approximately $36 million in cash. The acquired accountable care organization is expected to serve more than 36,000 attributed lives in the Medicare Shared Savings Program beginning January 1, 2027.

The transaction is expected to have minimal effects on Privia’s key 2026 metrics and to contribute positively to attributed lives and adjusted EBITDA in 2027. It will extend Privia Care Partners’ value-based care presence across 10 existing states and three new states.

Separately, Privia will end its Montana partnership with Surgery Partners effective January 2027. The operations account for 69 providers and approximately $23 million in annual practice collections. The company expects the exit to have no material effect on adjusted EBITDA in 2027.

Cash Position and Outlook Assumptions

Privia ended September with $446.3 million in cash and cash equivalents, up from $441.4 million a year earlier, and reported no debt. Management expects approximately 70% of full-year adjusted EBITDA to convert to free cash flow and projects at least $520 million of cash and cash equivalents at year-end.

That cash forecast includes the American Choice transaction and assumes the 2025 Medicare Shared Savings Program cash settlement and related provider disbursements occur before year-end based on current accruals. Final 2025 MSSP results were expected in November 2026.

The company cautioned that its projections remain subject to risks and uncertainties that could cause actual results to differ materially, including factors described in its filings with the Securities and Exchange Commission.