Privia Health Group, Inc.PRVA
Privia Health Group, Inc. Income Taxes Disclosure
Income Taxes
The provision for income taxes for years ending December 31, 2025, 2024, and 2023 are as follows:
| December 31, | |||||||||||||||||
| (Dollars in Thousands) | 2025 | 2024 | 2023 | ||||||||||||||
Current: | |||||||||||||||||
| Federal | $ | 1,707 | $ | 1,022 | $ | — | |||||||||||
| State and local | 1,634 | 987 | 528 | ||||||||||||||
| Total current income tax expense | 3,341 | 2,009 | 528 | ||||||||||||||
| Deferred: | |||||||||||||||||
| Federal | $ | 9,460 | $ | 7,234 | $ | 6,221 | |||||||||||
| State and local | 1,411 | 1,583 | 1,244 | ||||||||||||||
| Total deferred income tax expense | 10,871 | 8,817 | 7,465 | ||||||||||||||
| Total income tax expense | $ | 14,212 | $ | 10,826 | $ | 7,993 | |||||||||||
Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and deferred tax liabilities as of December 31, 2025, and 2024 are as follows:
| (Dollars in Thousands) | December 31, 2025 | December 31, 2024 | |||||||||
Deferred tax assets | |||||||||||
| Net operating loss carryforwards | $ | 6,896 | $ | 11,537 | |||||||
| Stock compensation | 21,099 | 22,994 | |||||||||
| Lease liability | 2,506 | 1,774 | |||||||||
| Other accruals | — | 73 | |||||||||
| Total gross tax assets | 30,501 | 36,378 | |||||||||
| Less: valuation allowance | — | — | |||||||||
| Total deferred tax assets | $ | 30,501 | $ | 36,378 | |||||||
Deferred tax liabilities | |||||||||||
Fixed and intangible assets | $ | (24,482) | $ | (8,698) | |||||||
Right-of-use assets | (2,219) | (1,297) | |||||||||
Other | (1,526) | — | |||||||||
Total deferred tax liabilities | (28,227) | (9,995) | |||||||||
Deferred tax assets, net | $ | 2,274 | $ | 26,383 | |||||||
For the years ended December 31, 2025, and 2024, the Company completed an assessment of the likelihood of realizing all or some portion of its net deferred tax assets. Based on an analysis of the positive and negative evidence, the Company determined it was more likely than not that the Company will be in a position to realize the benefits of the deferred tax asset as a result of consistent profitability. As such, no valuation allowance was recorded in either year. As of December 31, 2025, the Company has remaining federal and state net operating loss carryforwards of approximately $26.9 million and $24.7 million (post-apportioned state NOL) respectively, that begin to expire in 2035.
The following is a reconciliation of income tax computed at the U.S. federal statutory income tax rate to the provision for income taxes for the year ended December 31, 2025:
Dollars | Rate | ||||||||||
| (Dollars in Thousands) | December 31, 2025 | ||||||||||
| $ | 9,227 | 21.0 | % | ||||||||
State and Local income taxes, net of federal income tax effect | 2,757 | 6.3 | |||||||||
Nontaxable or nondeductible items | |||||||||||
Share-based payment awards | 2,867 | 6.5 | |||||||||
| Non-controlling interest | (1,430) | (3.3) | |||||||||
Other | 330 | 0.8 | |||||||||
Other adjustments | 461 | 1.0 | |||||||||
Provision for income taxes | $ | 14,212 | 32.3 | % | |||||||
The following is a reconciliation of income tax computed at the U.S. federal statutory income tax rate to the provision for income taxes for the years ended December 31, 2024, and 2023:
Dollars | Rate | ||||||||||||||||||||||||||||
| (Dollars in Thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||
| $ | 6,041 | $ | 6,094 | 21.0 | % | 21.0 | % | ||||||||||||||||||||||
Stock compensation | 3,136 | (22) | 10.9 | (0.1) | |||||||||||||||||||||||||
State tax expense, net of federal benefit | 2,051 | 2,140 | 7.1 | 7.4 | |||||||||||||||||||||||||
Rate change | 97 | (115) | 0.3 | (0.4) | |||||||||||||||||||||||||
| Non-controlling interest | (486) | 331 | (1.7) | 1.1 | |||||||||||||||||||||||||
Other | (13) | (435) | — | (1.5) | |||||||||||||||||||||||||
Provision for income taxes | $ | 10,826 | $ | 7,993 | 37.6 | % | 27.5 | % | |||||||||||||||||||||
The stock compensation impacting the income tax provision is primarily attributable to stock-based compensation expense that is not deductible under Section 162(m), partially offset by tax deductible stock-based compensation.
The 2020 through 2024 federal and state income tax returns are within the statute of limitations and are currently not under examination by any federal or state tax authority.
The Company assesses the uncertainty in its income tax positions to determine whether a tax position of the Company is more likely than not to be sustained upon examination, including resolution of any related appeals of litigation processes, based on the technical merits of the position. For the tax position meeting the more-likely-than-not threshold, the tax amount recognized in the financial statements is reduced by the largest benefit that has a greater than 50% likelihood of being realized upon the ultimate settlement with the relevant taxing authority. As of December 31, 2025, and 2024, the Company had not recorded any reserves for uncertain tax positions or related interest and penalties.
The following is a reconciliation of the income taxes paid (net of refunds received) for the year ended December 31, 2025:
| Jurisdiction | Income Taxes Paid (net of refunds received) | ||||
(Dollars in Thousands) | |||||
U.S. Federal | $ | 4,900 | |||
States | 1,739 | ||||
Total | $ | 6,639 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 25, 2022 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.