PRVA

Privia is a genuinely improving business wearing an expensive price tag. FY2025 revenue grew 22.3% to $2.12B, the fourth straight year of double-digit growth, and the company has now stacked three consecutive profitable years (FY2023 $23.1M, FY2024 $14.4M, FY2025 $22.9M) after deep losses in 2021-22. Crucially, operating income doubled (+101.6% to $34.2M) and operating cash flow jumped 49.5% to $163M — far above $22.9M of net income — confirming the asset-light, capital-efficient model (D&A just $9.91M, negligible capex). The balance sheet is a real strength: $480M cash, $737M equity, liabilities/equity of only 0.78x, and current assets ($911M) comfortably covering current liabilities ($569M). On ~$163M of OCF against a $3.16B cap, the ~5% cash-flow yield is defensible for a 20%+ grower.

The problem is what you pay for that and how thin the economics are underneath the headline growth. GAAP profitability is wafer-thin — 1.6% operating margin, 1.1% net margin, 3.1% ROE — because much of the $2.12B 'revenue' is pass-through to the affiliated Medical Groups (FFS-patient care revenue booked net of contractual allowances and implicit price concessions, per the MD&A revenue-recognition disclosure). That makes the trailing P/E of 141.9 on $0.18 diluted EPS genuinely demanding; the stock is priced for the operating leverage to keep compounding, leaving little margin for error. Accumulated deficit remains -$156M, and growth leans on acquisitions, where the MD&A flags that goodwill/intangible valuations rest on 'inherently uncertain' assumptions about revenue growth, attrition and discount rates.