Thomas Kelliher

Thomas Kelliher, on for Sean Dodge at RBC Capital Markets, requested an update on the commuter benefits business, its performance relative to pre-pandemic levels, and its outlook for fiscal 2026.

Answer

CEO Jon Kessler reported that the commuter business has stabilized at approximately 60-65% of its pre-pandemic revenue. He characterized it as a good business with solid service margins but noted it is not a significant growth driver and is not expected to be a material factor in the company's overall results for fiscal 2026.

Thomas Kelliher, on for Sean Dodge at RBC Capital Markets, asked about the margins of Privia's capitated book of business and any observable utilization trends heading into the fourth quarter.

Answer

CEO Parth Mehrotra stated that the small book of business kept under capitation had a positive margin, which was better than expected. He confirmed that headwinds from utilization, Star Scores, and benefit design changes persist, but the company is managing them carefully. He noted that the Q3 results reflect all data received to date and the company hopes to end the year on a positive note for the capitated book.