Privia Health Purchases Evolent's ACO Division to Enhance Value-Based Care
Acquisition Details: Privia Health Group, Inc. has agreed to acquire an Accountable Care Organization (ACO) business from Evolent Health, Inc. for $100 million in cash, with an additional $13 million contingent on Medicare performance, expected to close in Q4 2025.
Impact on Operations: The acquisition will expand Privia's value-based care (VBC) attributed lives to approximately 1.5 million and enhance operational synergies for ACO-participating providers, while Evolent Health reaffirmed its financial guidance for Q3 and full-year 2025.
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- Earnings Release Schedule: Evolent Health will announce its fourth quarter and year-end financial results for 2025 on February 24, 2026, after market close, which is expected to provide investors with critical financial data and future outlook.
- Conference Call Details: Following the earnings release, Evolent will host a conference call at 5 p.m. ET, where investors can participate by dialing 855.940.9467 or 412.317.6034 for international calls, ensuring they call 15 minutes prior for questions.
- Investor Relations Platform: Participants can listen to a live broadcast of the conference call on Evolent's investor relations website, with an audio playback available for 90 days post-call, allowing access for investors who could not attend live.
- Company Background: Evolent Health specializes in achieving better health outcomes for individuals with complex conditions through solutions that simplify and reduce healthcare costs, serving a national base of leading payers and providers, and is consistently recognized as a top workplace in healthcare nationally.
- Earnings Release Schedule: Evolent Health will announce its fourth quarter and year-end financial results for 2025 on February 24, 2026, after market close, reflecting the company's ongoing commitment to managing complex health conditions.
- Conference Call Details: Following the earnings release, Evolent will host a conference call at 5 p.m. ET, where investors can dial 855.940.9467 or 412.317.6034 for international calls to engage directly with management.
- Live Broadcast and Playback: The conference call will be available via live broadcast on Evolent's investor relations website, with an audio playback accessible for 90 days post-call, ensuring that all investors can stay informed.
- Company Overview: Evolent Health specializes in improving health outcomes for individuals with complex conditions through effective solutions, serving a national base of leading payers and providers, and is consistently recognized as a top workplace in the healthcare sector.
- Executive Appointment: Evolent Health has appointed Mario Ramos as the new Chief Financial Officer effective January 2, 2026, aiming to enhance the company's financial performance through his extensive financial management experience.
- Stock Award: The company granted Ramos a one-time inducement award of 587,500 restricted stock units valued at $2.35 million, reflecting the company's high expectations for his future contributions.
- Award Structure: The stock award will vest over three years, with 34% vesting on the first anniversary and 33% on each of the following two anniversaries, incentivizing Ramos to maintain a stable contribution to the company's long-term growth.
- Compliance: This stock award complies with New York Stock Exchange listing rules, ensuring transparency and compliance in the executive hiring process, which further enhances investor confidence.
- Executive Appointment: Evolent Health appointed Mario Ramos as Chief Financial Officer effective January 2, 2026, granting him 587,500 restricted stock units as an inducement award, which underscores the company's commitment to strengthening its executive team.
- Stock Award Value: The inducement award has a grant date value of $2.35 million, vesting over three years at 34%, 33%, and 33%, which not only incentivizes the new CFO's long-term commitment but also enhances the company's competitiveness in attracting top talent.
- Compliance Assurance: Evolent ensured that the stock award complies with New York Stock Exchange listing rules, reflecting the company's transparency and adherence to regulations in executive compensation, thereby boosting investor confidence.
- Strategic Development: By bringing in an experienced CFO, Evolent aims to optimize financial management and strategic planning to support its mission of improving health outcomes for people with complex conditions, driving future business growth.

Stock Performance and Price Target Adjustments: Evolent Health Inc. has seen its price targets lowered by Citi and Canaccord, with current targets at $9.50 and $9 respectively, while both firms maintain a Buy rating amid increased uncertainty regarding the company's shares.
Q3 2025 Earnings Report: The company reported $480 million in Q3 revenue, achieving 8% sequential growth and maintaining its full-year revenue guidance between $1.87 and $1.88 billion, ending the quarter with $116.7 million in cash.
Future Revenue Contracts: Evolent Health has secured approximately $2.5 billion in revenue under contract for 2026, including new arrangements expected to contribute over $550 million, utilizing a new performance suite model.
Investment Considerations: While Evolent Health shows potential as an investment, there are suggestions that certain AI stocks may offer better upside potential and lower risk, prompting a recommendation to explore undervalued AI stocks.
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