Healthcare tech company Privia Health Group (NASDAQ: PRVA) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 23.4% year on year to $521.2 million. The company expects the full year’s revenue to be around $1.9 billion, close to analysts’ estimates. Its non-GAAP profit of $20 per share was significantly above analysts’ consensus estimates.

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Company Overview

Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ: PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, Privia Health’s sales grew at an impressive 18.4% compounded annual growth rate over the last five years. Its growth beat the average healthcare company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Privia Health’s annualized revenue growth of 12.3% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

We can better understand the company’s revenue dynamics by analyzing its number of implemented providers, which reached 5,125 in the latest quarter. Over the last two years, Privia Health’s implemented providers averaged 14.6% year-on-year growth. Because this number is better than its sales growth, we can see the company’s underlying demand decreased.

This quarter, Privia Health reported robust year-on-year revenue growth of 23.4%, and its $521.2 million of revenue topped Wall Street estimates by 10.9%.

Looking ahead, sell-side analysts expect revenue to grow 5.1% over the next 12 months, a deceleration versus the last two years. Still, this projection is above the sector average and implies the market is forecasting some success for its newer products and services.

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Adjusted Operating Margin

Adjusted operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. It also removes various one-time costs to paint a better picture of normalized profits.

Privia Health was profitable over the last five years but held back by its large cost base. Its average adjusted operating margin of 4.4% was weak for a healthcare business.

On the plus side, Privia Health’s adjusted operating margin rose by 1.1 percentage points over the last five years, as its sales growth gave it operating leverage. The company’s two-year trajectory shows its performance was mostly driven by its recent improvements.

In Q2, Privia Health generated an adjusted operating margin profit margin of 4.8%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Privia Health’s EPS grew at an astounding 161% compounded annual growth rate over the last five years, higher than its 18.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

We can take a deeper look into Privia Health’s earnings quality to better understand the drivers of its performance. As we mentioned earlier, Privia Health’s adjusted operating margin was flat this quarter but expanded by 1.1 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q2, Privia Health reported adjusted EPS at $20, up from $0.19 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Privia Health’s full-year EPS of $20.63 to shrink by 95.7%.

Key Takeaways from Privia Health’s Q2 Results

We were impressed by how significantly Privia Health blew past analysts’ sales volume expectations this quarter. We were also excited its EPS outperformed Wall Street’s estimates by a wide margin. On the other hand, its full-year revenue guidance was in line. Zooming out, we think this was a solid print. Investors were likely hoping for more, and shares traded down 1.5% to $19.51 immediately after reporting.

Big picture, is Privia Health a buy here and now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.