Privia Health raises 2026 outlook as third-quarter revenue grows 13.2% to $657 million
Key Facts
Privia Health raised its 2026 financial outlook range, announcing on November 5 expected revenue of $2.50 billion to $2.55 billion, compared with a previous range of $2.35 billion to $2.45 billion. It also raised its outlook for adjusted EBITDA to $154–157 million from $145–155 million. The outlook update coincided with the release of results for the third quarter and the nine months ended September 30. For the nine months, the measure totaled $114.7 million, up 21.9% from the same period in 2025. The announcement puts the period's performance and the new annual outlook at the center of the company's results, without the company explicitly attributing the increase to any single factor.
In the third quarter, the company's revenue rose 13.2% to $657.0 million, compared with $580.4 million a year earlier. Net income climbed to $13.5 million from $6.9 million, a year-over-year increase of 96.6%. Adjusted EBITDA increased 6.3% to $40.6 million, compared with $38.2 million in the third quarter of 2025. The differing growth rates across the measures show that revenue and net income grew faster than adjusted EBITDA during the quarter. The results disclosed here did not provide an analyst-consensus figure.
For the first nine months, revenue totaled $1.8934 billion, up 19.7% from $1.5817 billion in the same period last year. Net income rose to $25.6 million from $13.8 million, an increase of 85.9%. Practice collections reached $2.9136 billion, up 12.0% from $2.6019 billion. Platform contribution was $209.9 million, compared with $179.8 million, an increase of 16.8%. These measures reflect the scale of activity across practices and the platform, alongside revenue and net income reported in the financial statements.
The updated outlook also included a higher 2026 range for practice collections, raised to $3.90–3.95 billion from $3.65–3.75 billion. The company raised its platform contribution range to $280–285 million, compared with the previous range of $260–270 million. Privia said it expects to convert about 70% of adjusted EBITDA into free cash flow during the year. This estimate takes the American Choice Healthcare transaction into account and assumes completion of the 2025 MSSP program settlement and related distributions before year-end. The outlook does not assume any new business development activity.
As it expands its value-based care arrangements, the company acquired American Choice Healthcare MSSP for about $36 million paid at closing. It said the arrangement will serve more than 36,000 beneficiaries in the Medicare Shared Savings program starting January 1, 2027. The company expects the transaction to contribute positively to beneficiary counts and adjusted EBITDA in 2027, while having a limited effect on key metrics in 2026. At the end of the third quarter, 5,893 care providers had joined the Privia platform, an increase of 12.2% year over year. The number of beneficiaries attributed to value-based care arrangements reached 1.676 million, up 19.2%.
Separately, Privia agreed to end its partnership in Montana effective January 2027. The company supports 69 care providers there, and annual practice collections tied to the partnership are about $23 million. It expects the partnership's termination to have no material effect on adjusted EBITDA in 2027. The operational change comes in the same period that the company expects the American Choice Healthcare transaction to begin contributing next year. PRVA shares closed at $22.4 on November 4, before the results announcement, and at $23.94 on November 5, the day of the announcement.
The company had scheduled a call to discuss its results and outlook for November 5, 2026, at 8:00 a.m. Eastern Time. It allowed investors to register to listen to the call later through its investor relations website. The expected contribution of the American Choice Healthcare transaction to beneficiary counts and earnings begins on January 1, 2027. The Montana partnership termination is scheduled to take effect in January 2027. These changes remain part of the operational context the company reported alongside its higher outlook ranges for the current year.