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P3 Health PartnersD
Nasdaq / Health Care Equipment & Services
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2026-08-17
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Earnings documents stored for PIII.

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Investor releaseQuarter not tagged2026-08-17

P3 Health Partners (PIII) Q2 2026 Earnings Call Transcript

Motley Fool
Image source: The Motley Fool. Monday, Aug. 10, 2026 at 4:30 p.m. ET CEO - Aric Coffman Investor Relations - William Hoover Operator: Good day, and welcome to the P3 Health Partners Second Quarter 26 Earnings Conference Call. All participants will be in a listen-only mode. By pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press *1 on your touch tone phone. And to withdraw your question, please press *2. Please note this event is being recorded. I would now like to turn the conference over to Mr. William Hoover of Investor Relations. Please go ahead. Thank you, operator, and thank you for joining us today. Before we proceed with the call, I would like to remind everyone that certain statements made during the call are forward-looking statements under the U.S. Federal Securities Laws. Including statements regarding our financial outlook and long term targets. These forward looking statements are only predictions and are based largely on our current expectations and projections about future events and financial trends. That we believe may affect our business and financial condition, and results of operations. These statements are subject to risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations. Additional information concerning factors that could cause actual results to differ from statements made on this call is contained in a periodic report filed with the SEC. The forward looking statements made during this call speak only as of the date hereof, and the company undertakes no obligation to update or revise these forward looking statements. We refer to certain non-GAAP financial measures on this call, including adjusted operating expense, adjusted EBITDA, adjusted EBITDA per member per month, normalized adjusted EBITDA, medical margin, medical margin per member per month, and cash flow. These non GAAP financial measures are in addition to and not a substitute for or superior to the measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non GAAP financial measures. For example, other companies may calculate similarly titled non GAAP financial measures differently. Please refer to the appendix of our earnings release for a…Read full document

Image source: The Motley Fool. Monday, Aug. 10, 2026 at 4:30 p.m. ET CEO - Aric Coffman Investor Relations - William Hoover Operator: Good day, and welcome to the P3 Health Partners Second Quarter 26 Earnings Conference Call. All participants will be in a listen-only mode. By pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press *1 on your touch tone phone. And to withdraw your question, please press *2. Please note this event is being recorded. I would now like to turn the conference over to Mr. William Hoover of Investor Relations. Please go ahead. Thank you, operator, and thank you for joining us today. Before we proceed with the call, I would like to remind everyone that certain statements made during the call are forward-looking statements under the U.S. Federal Securities Laws. Including statements regarding our financial outlook and long term targets. These forward looking statements are only predictions and are based largely on our current expectations and projections about future events and financial trends. That we believe may affect our business and financial condition, and results of operations. These statements are subject to risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations. Additional information concerning factors that could cause actual results to differ from statements made on this call is contained in a periodic report filed with the SEC. The forward looking statements made during this call speak only as of the date hereof, and the company undertakes no obligation to update or revise these forward looking statements. We refer to certain non-GAAP financial measures on this call, including adjusted operating expense, adjusted EBITDA, adjusted EBITDA per member per month, normalized adjusted EBITDA, medical margin, medical margin per member per month, and cash flow. These non GAAP financial measures are in addition to and not a substitute for or superior to the measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non GAAP financial measures. For example, other companies may calculate similarly titled non GAAP financial measures differently. Please refer to the appendix of our earnings release for a reconciliation of these non GAAP financial measures to the most direct comparable GAAP measures. The information presented on this call is contained in the press release that we issued today and in our SEC filings. Which may be accessed from the Investor page of the P3 Health Partners website. I will now turn the call over to Aric Coffman, CEO of P3 Health Partners. Aric Coffman: Good afternoon, and thank you for joining us today to discuss our second quarter results. Q2 represents a continuation of the positive momentum we have built over the last 2 years and reflects sustained execution against the plan we shared with you at the outset of my tenure. None of this happens without the work of our teams across the country. Their focus, discipline, and their day to day execution are what converts strategy into results. And I want to thank them for the dedication they bring to serving our patients, our providers and payer partners. We delivered $54 million of adjusted EBITDA in the second quarter, bringing our first half total adjusted EBITDA to $80 million building on the trajectory we established in Q1. Given the strong performance and our confidence in the underlying business, we are raising our full year 2026 outlook. it is been just over 2 years since I began leading P3. The results of this quarter reflect how much the structural and operational changes we have made across our contracts, our markets and our operating model continue to compound. We remain focused on medical cost improvement, quality and burden of illness performance, disciplined growth, and continued operational improvements through people, process and technology. There are 3 things to highlight about P3's performance through the first half of 2026. First is operational execution. As we have discussed previously, our operating model is centered around medical cost management, quality execution, provider engagement and coding accuracy. Across the organization, we are expanding our point of care tools ahead of schedule, now reaching greater than 65 thousand lives across our portfolio. Allowing more accurate burden of illness capture and quality gap closures. These AI enhanced tools reduce the administrative burden for the clinicians as we are meeting our provider partners where they are to drive adoption in daily practice. Our quality performance is tracking ahead of our internal glide path towards 4 stars on HEDIS and medication adherence measures. Our impact across utilization management and payment integrity are tracking at or above plan and we will be expanding these programs as part of our contractual reset with payers. Our clinical and care management programs continue to expand with a focus on high risk, rising risk patients and transitions of care. The impact from our operating model can be seen in our Q2 MA medical expense trend and quality trajectory. Medical cost trend across our MA population to the first half 26 was 1.8% lower than full year 2025, which Leif will cover in more detail. This is a significant and sustained differentiator in the sector when compared to peers running 5% to 7% year over year. Quality remains 1 of the most important levers in Medicare Advantage, both for the patients we serve and for the strength of our payer relationships. Strong quality performance is not only linked with better patient outcomes, it directly supports better economic terms and deeper alignment with our payer partners and is an area where P3 continues to differentiate. Quality is tracking well through the first half of the year. We are ahead of our glide path to get to 4-star on HEDIS and medication adherence measures. We have also improved our process around alternative submissions driving 3x the total submissions at this point compared to the prior year. With total members impacted by quality submissions up close to 20% from Q1. This progress reflects the scale and effectiveness of our improved processes. Second is our payer partnerships. And our contract structure design work we began 18 months ago, we focused on redesigning and enhancing our risk profile funding and cost accountability with our key payer partners, including enhanced funding mechanisms, revising risk-sharing arrangements, delegation expansion, and improving alignment around medical cost accountability. As you look at the composition of this quarter's results, a portion of our Q2 performance reflects onetime nonrecurring items across multiple payer contracts. These settlements are more than a financial event. They reflect the trust our payer partners continue to place in P3 and our shared commitment to taking care of our patients and provider partners. Third is growth. Our engagement in Nebraska that we shared with you earlier this year continues to progress positively. We are executing on our expected trajectory and look forward to sharing more as it matures. We favor a deliberate glide path on geographic expansion. Understand the population, build the clinical and operational infrastructure, and validate performance before taking on full risk. This sequencing reduces downside exposure and positions us to enter full risk in a disciplined way In addition, with our existing partners, we continue to explore growth opportunities in both current and new geographies. Overall, our second quarter was strong. And reflects the compounding benefit of the work we have done over the past 2 years. We have 2 quarters remaining in 2026, and our attention remains on sustaining that execution. These results reinforce our confidence that the business has moved into a phase of durable, more predictable earnings. And that trajectory is what gives us the confidence to raise our outlook for the year. The core economic levers that drive the business our contract structure our operating model our clinical execution are increasingly within our control. Our work is never finished, but the framework for 2026 is solid. And we remain focused on executing with the same discipline that got us here. Our success is predicated on the engagement of our clinician partner. I am proud of the work we have established with the Restore program to impact clinician engagement improve practice sustainability, and bring solutions to help them succeed. To speak more about that and to discuss our clinical performance, I will turn the call over to Amir. Amir Bacchus: Thank you, Aric. I want to spend a few minutes on the clinical work driving the financial results we are delivering. Medical expense trend performance we are seeing this quarter is not accidental. It reflects deliberate clinical programs expanding point of care technology and disciplined utilization management and payment integrity execution. All built around the care enablement model. I will walk through where that work is showing up most clearly this quarter. Our point of care technology appointment is ahead of plan. Tracking to roughly 110% of our original year end goal. Where the tool is in use, the results are clear. Providers are addressing nearly 90% of care gaps at the point of care. With capture rates running several points ahead of our broader enterprise average. Todd, the tool is open in roughly half of eligible visits, and we are closing that gap through the in office training embedded directly into provider offices rather than relying on remote onboarding. Our provider network and clinical teams saw 87% of our patients through the second quarter. 2 points ahead of our internal glide path. Including 99.5% of our highest risk members enterprise wide. Well ahead of the 90% glide path for that population. Seeing members regularly is foundational to how we care for our population. Our care management team and senior wellness centers play a key role in that effort. Extending access and creating additional touch points with our highest risk patients beyond the traditional practice setting. Helping us reach and see more of our population. Together, this engagement allows us to connect patients to the right clinical programs, monitor chronic conditions proactively and intervene earlier when care is needed. It is a key driver of both quality outcomes and the overall health of our patients. Our utilization management program is built around a simple principle: patients should receive care in the right setting, delivered by the right level of provider, at the right time. We have expanded our review of prepaid hospital billing to confirm medical record support the level of care submitted. And broadened our review of appropriate site of care. Helping direct patients to home health support rather than a skilled nursing facility when that is the better clinical fit. That work has driven a 17% year to date redirect rate from skilled nursing to home. Reflecting our commitment to caring for patients in the setting that is best for their recovery and well-being, while remaining responsible stewards the health care resources we are entrusted with. We also continue to invest in our provider community through Restore, our clinician coaching program. The first half of the year, we expanded the program across 4 markets: and clinicians completing the program report meaningful improvement across measures like stress management, leadership confidence, and practice satisfaction. This work supports the stability and engagement of the provider network our model depends on. This quarter, we expanded the offering further to include asynchronous education and CME credit. Making it easier for more of our provider community to participate. In total, this work reflects a clinical foundation that is increasingly built for scale, from how we engage patients and support providers to how we manage utilization and ensure payment accuracy. It is the operating discipline that underpins the financial results you are about to hear. With that, I will turn the call over to Leif to walk you through our financials. Leif Pedersen: Thank you, Amir, and good afternoon. Q2 was another strong quarter. We delivered $54 million of adjusted EBITDA. Including approximately $9 million of underlying adjusted EBITDA, excluding favorable contractual settlements, and prior year development. Importantly, the underlying business is profitable and improved quarter over quarter. The settlements recognized in the quarter reflect the constructive resolution of legacy contractual matters and strong alignment with several of our payer partners. More broadly, our results demonstrate the cumulative impact of the foundational changes we have made across the business including improved payer economics, better medical expense performance, and disciplined clinical and operational execution. This afternoon, I will cover 3 areas. First, financial performance for the quarter. Including an update on our medical cost trend, second, our capital position and liquidity and third, our revised outlook for the remainder of 2026. Starting with membership, total at-risk at the end of Q2 was approximately 105 thousand compared to $116 thousand in Q2 2025. Consistent with what we have shared previously, the year over year decline reflects the deliberate portfolio actions we took throughout 2025 including the exit of arrangements that did not meet our economic thresholds. The membership base we are operating from today is more concentrated in relationships where our model performs best. In addition to our at-risk membership, we manage approximately 28 thousand lives through management services, bringing total lives under management approximately 133 thousand. We began reporting this metric in Q1 because it provides a more complete view of the scale of the P3 platform and reflects our ability to support payer and provider partners across different levels of risk and service. Moving to revenue. Q2 revenue was $386 million compared to $356 million in the same period of 2025. Despite a lower membership base, per member funding for our at-risk population improved approximately 15% year over year. Reflecting continued success in rate progression, contractual restructuring and further maturation of our burden of illness documentation across our network. Medical claims expense for the quarter was $269 million. The results include approximately $45 million of favorable payer settlements and prior year development. Year to date, our MA medical cost trend is 1.8% below full year 2025 baseline. When fully excluding the favorable payer settlements and adjusting for prior year development. Medical margin for the quarter was $98 million or $311 PMPM. Medical loss ratio for the quarter was 85.6% when adjusted for the favorable payer settlements and prior year development noted above. These results reflect the improved payer economics clinical execution and enhanced payment integrity workflows along with the utilization management progress previously described. Adjusted operating expense for the quarter was $32 million consistent with cost structure we have established over the prior 18 months. That total includes continued investment in professional fees supporting improved coding and documentation, as well as infrastructure costs associated with standing up our Nebraska market. We continue to direct investment towards frontline capabilities that drive medical costs, and quality performance. While remaining diligent about cost discipline across the rest of the organization. Adjusted EBITDA for Q2 was $54 million compared to a loss of $17 million in the same period of 2025. Of that result, approximately $45 million reflects the favorable payer settlements and prior year developments noted previously. Excluding those items, underlying Q2 adjusted EBITDA was approximately $9 million reflecting the core operating performance of the business. These Q2 results bring us to adjusted EBITDA of $80 million for the first half of 26. Compared to a loss of $39 million in the first half of 25. Of the $62 million in favorable payer settlements and prior year development recognized across the first half. $17 million was recognized in Q1, and $45 million in Q2. Excluding those items, underlying first half adjusted EBITDA was approximately $18 million. For us, this is an important milestone. It shows the improvement in our economics is not solely dependent on contractual settlements or prior period development. The core business itself is now generating positive adjusted EBITDA. On the balance sheet, we ended the quarter with $21 million in cash and equivalents. Consistent with the liquidity framework we have communicated, we continue to manage capital with discipline, while maintaining focus on operational execution and financial stability. Now moving to our updated 2026 outlook. We are raising our full year 2026 adjusted EBITDA outlook to a range of $80 million to $110 million with a midpoint of $95 million The revision reflects the favorable contractual settlements in prior year developments recognized in the first half. As well as continued improvement in our expectations for the remainder of the year. We are also tightening the range as we gain further visibility into the back half of the year. Our confidence is rooted in the improved economics now flowing through our results and the operating discipline we have established across the business. We remain mindful of the typical seasonal build in medical expense trends in the second half of the year and we are actively managing that dynamic through the same care management utilization management, and payment integrity programs Amir described. With that, I will turn it back to Aric for closing comments. Aric Coffman: Thanks, Leif. Before we open the line for questions, I want to leave you with 3 takeaways from the quarter. First, the structural work we set out to do 2 years ago is now fully embedded in how we run the business. Contract restructuring, network concentration and operational redesign continue to translate directly into our economics, and we are seeing that discipline compound quarter after quarter. There is more work ahead of us in the back half of the year and it remains a top priority. Second, our clinical model utilization management and payment integrity processes continue to set us apart. From the growth in our patients seen to our quality performance to the continued scaling of our point of care technology, we continue to drive down total cost of care and improve outcomes. These efforts are reflected in our MA medical cost trend this year, running nearly 2% below our 2025 baseline. We expect that gap to remain a meaningful point of differentiation as the year progresses. Third, we head into the back half of the year in a stronger position than where we started it. We are raising our full year outlook to $80 million to $110 million and our fundamentals continue to mature, our results are becoming more predictable. We are proud of the progress this business has made and we remain focused on executing with the same discipline that got us here. With that, operator, please open the line for questions. Operator: Thank you. We will now begin the question and answer session. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press *2. And our first question for today will come from Ryan Langston with TD Cowen. Please go ahead. Brian Langston: Thanks. Good afternoon. On the payer settlement, can you walk us through specifically what that is related to? Is that impact impacting both revenue and expense? And are you able to explicitly size the settlement in the quarter? Leif Pedersen: Hey, Ryan, it is Leif. Appreciate the question. Brian Langston: Hey, Leif. Leif Pedersen: I think the easiest way to kind of walk through that is just I will just reiterate what that bridge is, first and foremost. And so Q2 adjusted EBITDA was $54.4 million less $45 million of favorable prior period development and payer settlement. And just to let you know, Ryan, specifically, the payer settlement amount was $41 million. And that did not affect revenue. That only affected medical claims expense. Brian Langston: Got it. Okay. that is helpful. And then maybe anything I am sorry if I missed it. Maybe anything on just sort of seasonality of earnings, medical margin, EBITDA through the back half of this year? Leif Pedersen: Yes. So as you think about where we are at year to date, we were at $80 million for the 6 months ended June 30. For a reported EBITDA number. Underlying that is $18 million of embedded EBITDA. And $62 million of prior period settlements that came from Q1 and Q2. The midpoint for guidance in the back half is $95 million. So if you just took, where we are at today and you assume that we would get to a midpoint from an underlying EBITDA perspective, that would be about $15 million of additional EBITDA in the back half of the year. That takes into consideration both what we expect there to be some normal traditional industry pressure from the backside of the year in medical expense from utilization. But that is being offset by in year programmatics that are gonna drive and offset some of that cost. And just, you know, I am going to take it a step further. For you, Ryan, as well. Just as we think about it, and Aric spoke to this in his opening comments, is we are seeing a 1.8% reduction in MedEx trend if you look at full year 2025 and you compare that to the 6 months ended 36, and we are down 1.8%. And that is attributable to a number of things that include the programmatics that we have in place, Also, it is contributing to that decrease. it is some of the network curation and specific actions that we took with our membership population exiting 2025. And then there were some other factors as it relates to benefit plan reductions, our benefit reductions within our payer partner plans that they offered in 2026. Okay. Got it. Brian Langston: And just 1 last 1 for me, and then I will hop back in the queue. I guess any insight into how your plans price benefits for 2027? And then just maybe more specifically, some of the plans have talked about further market exits or further planned exits next year. Any thoughts on if those exits will actually impact your current membership? Thanks. Aric Coffman: Yes. Thanks for that. This is Aric. So I think there is some of it is a little bit early to know. We are still in August, and some of those factors will get played out as we get more insight into what the benefit design actually looks like. We have seen some of the same notifications on county exits. We do not expect that to have a major impact on our membership overall in terms of the exited counties. In terms of the benefit design, we will have a much cleaner picture when we get to next earnings call after Q3. Got it. Brian Langston: Thank you. Aric Coffman: You are welcome. Operator: Your next question will come from Benjamin Haynor with Lake Street Capital Markets. Please go ahead. Benjamin Haynor: Good afternoon, gentlemen. Thanks for taking the questions. First off, Leif, if I can kind of summarize what you said it sounds like the core EBITDA that you have generated in the first half of the year is effectively if you do the same in the back half of the year, that is what gets you to the kind of the midpoint of the guidance range. Am I hearing you right there? Leif Pedersen: I think you are directionally correct in that analysis, Ben. I do think that we have factored in some back half pressure that goes into that. As well as risk rating other opportunities inside the second half of the year. Benjamin Haynor: Got it. And then on with the Nebraska trajectory, it sounds like that is going well. Can you maybe remind us how that tracks What happens in 2027 before you move to at risk in 2028, I believe? Aric Coffman: Yes. Thanks for the question. This is Aric. So we will remain in a relationship in 2027 where we are performing services on behalf of our partner in Nebraska We will continue to build out and scale the programmatics that we put in place there. And we do not move into the full risk arrangement until 2028. Benjamin Haynor: Okay. Got it. And then it sounds like the point-of-care tools, those have seen quite the adoption thus far. You know, half of office visits, that is pretty impressive. Where do you think you can get, and is there any kind of additional feedback that you have gotten that you can share on those tools and that program? Amir Bacchus: Well, we continue to roll out the program and we get more interest from our providers all the time. Really, as we started the program because, again, as a novel program, we started really, really a year or so ago, getting the interest as the provider starts to talk more about it and understand what it is to actually make the workflow easier. Is the key. Right? So as we work through our tier 1 providers and then now looking at expanding into our tier 2 providers, and them talking about the value that it brings to improve their workflow. that is kind of the magic that allows us to get more traction within the tool. And then to drive better performance because not only can we show them you know, gaps in care opportunities, but we can show them a and better understanding from a diagnostic standpoint and the clinical diagnosis that they have had. For suspect diagnoses as well. Improve the care of the patient. Because you link those with our other team members, whether it is our high-risk management that we deal with on some of those populations within those practices, as well as our care management teams. Benjamin Haynor: And is it through all the tier 1 providers and just rolling out into tier 2? Or how far along in the process is it? Amir Bacchus: You know, almost all of our Tier 1s at the same time we are expanding into Tier 2s. So the Tier 2s are getting more traction every day. Then if you want, we can break down those numbers exactly for you as we go. But there is been a number of really good actions that we have had with FQHCs, etcetera, and how they are looking at how they utilize the information. Benjamin Haynor: Okay. Got it. Well, congrats on the progress, gentlemen, and thanks for taking the questions. Leif Pedersen: Thanks, Benjamin. Operator: This concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks. Please go ahead. Aric Coffman: Thanks, everyone, for joining, and that will conclude the call. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in P3 Health Partners, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and P3 Health Partners wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!* Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 17, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. P3 Health Partners (PIII) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Investor releaseQuarter not tagged2026-08-11

P3 Health Partners Q2 Earnings Call Highlights

MarketBeat
Interested in P3 Health Partners Inc.? Here are five stocks we like better. P3 Health Partners reported $54 million in second-quarter adjusted EBITDA, up from a $17 million loss a year earlier, but the result included $45 million from favorable payer settlements and prior-year development. Excluding those items, underlying quarterly EBITDA was approximately $9 million. The company said medical-cost trends remained favorable, with first-half Medicare Advantage costs running 1.8% below the 2025 baseline. Clinical initiatives also expanded, including point-of-care tools reaching more than 65,000 lives and strong engagement with high-risk members. P3 raised its 2026 adjusted EBITDA outlook to $80 million-$110 million, with a midpoint of $95 million. At-risk membership declined to about 105,000, while the company plans to continue its Nebraska partnership in 2027 and delay full-risk operations there until 2028. After Soaring 182% Is Time To Ring The Register In P3 Health? P3 Health Partners (NASDAQ:PIII) reported second-quarter adjusted EBITDA of $54 million and raised its full-year 2026 outlook, while noting that the quarterly result included $45 million of favorable payer settlements and prior-year development. Chief Executive Officer Aric Coffman said the company’s second-quarter performance reflected continued execution on contract restructuring, network concentration, medical-cost management and clinical operations. P3 reported $80 million in adjusted EBITDA for the first half of 2026, compared with a $39 million loss in the first half of 2025. → MarketBeat Week in Review – 08/03 - 08/07 “The core economic levers that drive the business, our contract structure, our operating model, and our clinical execution are increasingly within our control,” Coffman said. Revenue for the second quarter was $386 million, up from $356 million in the prior-year period, despite a lower at-risk membership base. Chief Financial Officer Leif Pedersen said per-member funding for the at-risk population increased about 15% year over year, which he attributed to rate progression, contract restructuring and improved burden-of-illness documentation. → Quantum Earnings Week: Winners and Losers Are Finally Emerging At-risk membership totaled about 105,000 at the end of the quarter, down from 116,000 a year earlier. Pedersen said the decline reflected portfolio actions taken during 2025…Read full document

Interested in P3 Health Partners Inc.? Here are five stocks we like better. P3 Health Partners reported $54 million in second-quarter adjusted EBITDA, up from a $17 million loss a year earlier, but the result included $45 million from favorable payer settlements and prior-year development. Excluding those items, underlying quarterly EBITDA was approximately $9 million. The company said medical-cost trends remained favorable, with first-half Medicare Advantage costs running 1.8% below the 2025 baseline. Clinical initiatives also expanded, including point-of-care tools reaching more than 65,000 lives and strong engagement with high-risk members. P3 raised its 2026 adjusted EBITDA outlook to $80 million-$110 million, with a midpoint of $95 million. At-risk membership declined to about 105,000, while the company plans to continue its Nebraska partnership in 2027 and delay full-risk operations there until 2028. After Soaring 182% Is Time To Ring The Register In P3 Health? P3 Health Partners (NASDAQ:PIII) reported second-quarter adjusted EBITDA of $54 million and raised its full-year 2026 outlook, while noting that the quarterly result included $45 million of favorable payer settlements and prior-year development. Chief Executive Officer Aric Coffman said the company’s second-quarter performance reflected continued execution on contract restructuring, network concentration, medical-cost management and clinical operations. P3 reported $80 million in adjusted EBITDA for the first half of 2026, compared with a $39 million loss in the first half of 2025. → MarketBeat Week in Review – 08/03 - 08/07 “The core economic levers that drive the business, our contract structure, our operating model, and our clinical execution are increasingly within our control,” Coffman said. Revenue for the second quarter was $386 million, up from $356 million in the prior-year period, despite a lower at-risk membership base. Chief Financial Officer Leif Pedersen said per-member funding for the at-risk population increased about 15% year over year, which he attributed to rate progression, contract restructuring and improved burden-of-illness documentation. → Quantum Earnings Week: Winners and Losers Are Finally Emerging At-risk membership totaled about 105,000 at the end of the quarter, down from 116,000 a year earlier. Pedersen said the decline reflected portfolio actions taken during 2025, including exits from arrangements that did not meet P3’s economic thresholds. The company also managed approximately 28,000 lives through management-services arrangements, bringing total lives under management to about 133,000. Medical claims expense totaled $269 million. The result included approximately $45 million in favorable payer settlements and prior-year development. During the question-and-answer session, Pedersen said the payer settlement itself totaled $41 million, did not affect revenue and was recorded solely in medical claims expense. Medical margin was $98 million, or $311 per member per month. Medical loss ratio was 85.6% after adjusting for favorable settlements and prior-year development. Adjusted operating expense was $32 million, including investments in coding and documentation support as well as Nebraska-market infrastructure. Adjusted EBITDA was $54 million, versus a $17 million loss in the second quarter of 2025. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Excluding the $45 million of favorable payer settlements and prior-year development, Pedersen said underlying second-quarter adjusted EBITDA was approximately $9 million. Across the first half, P3 recognized $62 million of favorable payer settlements and prior-year development, including $17 million in the first quarter and $45 million in the second quarter. The company said underlying first-half adjusted EBITDA was approximately negative $18 million. Management said Medicare Advantage medical-cost trend for the first half of 2026 was 1.8% below the full-year 2025 baseline, excluding favorable payer settlements and adjusting for prior-year development. Coffman contrasted that result with what he described as peers experiencing 5% to 7% year-over-year trends. Chief Medical Officer Amir Bacchus said P3’s point-of-care technology deployment was ahead of plan and on track for roughly 110% of the company’s original year-end goal. The tools had reached more than 65,000 lives across the portfolio, according to Coffman. Bacchus said providers using the tools addressed nearly 90% of care gaps at the point of care, while capture rates were several points above the broader enterprise average. The tools were open in roughly half of eligible visits, and P3 was seeking to expand adoption through in-office provider training. P3’s provider network and clinical teams saw 87% of patients through the second quarter, two percentage points ahead of the company’s internal target, Bacchus said. The company also saw 99.5% of its highest-risk members, exceeding its 90% glide path for that population. In utilization management, P3 expanded reviews of prepaid hospital billing and appropriate sites of care. Bacchus said the work resulted in a 17% year-to-date redirect rate from skilled nursing facilities to home-based care where that setting was deemed the better clinical fit. The company said quality performance was ahead of its internal glide path toward four-star HEDIS and medication-adherence measures. It also reported three times as many alternative quality submissions as at the same point a year earlier, with members affected by quality submissions up nearly 20% from the first quarter. P3 ended the quarter with $21 million in cash and equivalents. The company raised its full-year 2026 adjusted EBITDA outlook to a range of $80 million to $110 million, from its prior outlook, with a midpoint of $95 million. Pedersen said the updated outlook reflects settlements and prior-year developments recognized in the first half, as well as improved expectations for the remainder of the year. He added that the company expects the usual seasonal increase in medical expenses during the second half but plans to offset some of that pressure through care management, utilization management and payment-integrity programs. Regarding its Nebraska expansion, Coffman said P3 will continue providing services for its partner during 2027 while building and scaling its programs. The company does not expect to enter a full-risk arrangement in Nebraska until 2028. Coffman said P3 does not currently expect announced county exits by some Medicare Advantage plans to have a major impact on its membership. He said the company expects to have a clearer view of 2027 benefit design following its third-quarter results. P3 Health Partners is a healthcare technology and services company that delivers data-driven solutions to support health plans in improving quality measures, risk adjustment accuracy and operational efficiency. The company's platform integrates advanced analytics, reporting capabilities and workflow automation to help clients optimize performance across value-based care programs and regulatory requirements. The company's core offerings include quality measurement and reporting for HEDIS, STAR and other performance frameworks, risk adjustment coding and audit services, and population health analytics. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "P3 Health Partners Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Investor releaseQuarter not tagged2026-08-11

P3 Health Partners Inc. Q2 2026 Earnings Call Summary

Moby
Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the strong Q2 performance to the compounding effects of a two-year structural redesign of payer contracts, market concentration, and operating models. The company achieved a significant differentiator in medical cost management, with a Medicare Advantage medical cost trend 1.8% lower than the full-year 2025 baseline, contrasting with peer trends of 5% to 7%. Operational execution is being driven by the rapid deployment of AI-enhanced point-of-care tools, which now reach over 65,000 lives and facilitate more accurate burden of illness capture. Strategic portfolio actions taken in 2025, including exiting underperforming arrangements, have resulted in a more concentrated membership base where the P3 model performs most effectively. Payer partnerships have been fundamentally redesigned to enhance risk profile funding and cost accountability, moving beyond simple financial events to deep clinical alignment. Quality performance is tracking ahead of internal targets for 4-star HEDIS ratings, which management views as a critical lever for securing better economic terms with payers. Full-year 2026 adjusted EBITDA guidance was raised to a range of $80 million to $110 million, reflecting both first-half settlements and improved expectations for core business performance. The guidance assumes a midpoint of $95 million, implying approximately $15 million of additional underlying EBITDA in the second half of the year after accounting for seasonal utilization pressures. Geographic expansion, specifically in Nebraska, follows a deliberate 'glide path' where P3 validates performance and infrastructure before assuming full risk in 2028. Management expects the gap between their medical cost trend and industry averages to remain a meaningful point of differentiation throughout the remainder of the year. The business has transitioned into a phase of durable and more predictable earnings as core economic levers move increasingly within management's control. Q2 results included $45 million in favorable payer settlements and prior-year development, which management characterized as a constructive resolution of legacy matters. Excluding non-recurring items, the underlying business generated $9 million in adjust…Read full document

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the strong Q2 performance to the compounding effects of a two-year structural redesign of payer contracts, market concentration, and operating models. The company achieved a significant differentiator in medical cost management, with a Medicare Advantage medical cost trend 1.8% lower than the full-year 2025 baseline, contrasting with peer trends of 5% to 7%. Operational execution is being driven by the rapid deployment of AI-enhanced point-of-care tools, which now reach over 65,000 lives and facilitate more accurate burden of illness capture. Strategic portfolio actions taken in 2025, including exiting underperforming arrangements, have resulted in a more concentrated membership base where the P3 model performs most effectively. Payer partnerships have been fundamentally redesigned to enhance risk profile funding and cost accountability, moving beyond simple financial events to deep clinical alignment. Quality performance is tracking ahead of internal targets for 4-star HEDIS ratings, which management views as a critical lever for securing better economic terms with payers. Full-year 2026 adjusted EBITDA guidance was raised to a range of $80 million to $110 million, reflecting both first-half settlements and improved expectations for core business performance. The guidance assumes a midpoint of $95 million, implying approximately $15 million of additional underlying EBITDA in the second half of the year after accounting for seasonal utilization pressures. Geographic expansion, specifically in Nebraska, follows a deliberate 'glide path' where P3 validates performance and infrastructure before assuming full risk in 2028. Management expects the gap between their medical cost trend and industry averages to remain a meaningful point of differentiation throughout the remainder of the year. The business has transitioned into a phase of durable and more predictable earnings as core economic levers move increasingly within management's control. Q2 results included $45 million in favorable payer settlements and prior-year development, which management characterized as a constructive resolution of legacy matters. Excluding non-recurring items, the underlying business generated $9 million in adjusted EBITDA for Q2, marking a milestone of core operational profitability. Per-member funding for the at-risk population improved approximately 15% year-over-year, despite lower total membership, due to rate progression and better documentation. The 17% year-to-date redirect rate from skilled nursing facilities to home health reflects a strategic shift in utilization management to lower-cost, high-quality settings. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that of the $45 million in favorable items, $41 million was specifically related to payer settlements. These settlements impacted medical claims expense only and did not affect the revenue line. The midpoint guidance suggests $15 million in additional underlying EBITDA for the second half of the year. This forecast accounts for traditional year-end utilization pressure, which management plans to offset through active payment integrity and care management programs. Management does not expect announced county exits by major payers to have a significant impact on their total membership. Specifics on 2027 benefit designs remain early, with more clarity expected following the third-quarter results. Point-of-care technology deployment is at 110% of the original year-end goal, with providers addressing nearly 90% of care gaps when using the tool. The tool is currently used in roughly half of eligible visits, with expansion moving from Tier 1 providers into Tier 2 networks to improve workflow and diagnostic accuracy.

Investor releaseQuarter not tagged2026-08-10

P3 Health Partners Announces Second Quarter 2026 Results

Business Wire
Raises Full-Year 2026 Adjusted EBITDA Guidance Management to Host Conference Call and Webcast August 10, 2026 at 4:30 PM ET HENDERSON, Nev., August 10, 2026--(BUSINESS WIRE)--P3 Health Partners Inc. ("P3" or the "Company") (NASDAQ: PIII), a patient-centered and physician-led population health management company, today announced its financial results for the second quarter ended June 30, 2026. "Q2 demonstrates that the business is now executing according to our plan. We delivered $54 million of adjusted EBITDA, with the core business driving improved profitability quarter over quarter. Our results reflect the structural improvements now embedded across our contracts, our network, and our operating model, the work I outlined at the onset of my tenure. That strength gives us the confidence to raise our full-year 2026 adjusted EBITDA outlook and to enter the second half focused on execution," said Dr. Aric Coffman, CEO of P3. Second Quarter 2026 Financial Results At-risk membership was approximately 105,000 members for the second quarter, a decrease of 10% compared to prior year, reflecting previously disclosed intentional network and payer rationalization. Total lives under management were approximately 133,000 for the quarter, including approximately 28,000 lives under management service arrangements. Total revenue was $386 million, an increase of 9% compared with the prior year quarter. Total per-member capitated revenue increased 15% from the same period in the prior year driven by improved network economics, rate progression, and burden of illness performance. Medical margin(1) for the quarter was $97.8 million, or $311 on a per-member-per-month basis. The results include the favorable impact of payer settlements and prior year development recognized in the quarter. Excluding these items, medical margin for the quarter was $52.9 million, or $168 on a per-member-per-month basis. Net income was $15.7 million compared to a net loss of $43.7 million in the prior year quarter. Adjusted EBITDA(1) for the quarter was $54.4 million, or $173 per-member-per-month, compared to a loss of $17.1 million, or negative $49 per-member-per-month in the prior year quarter. Revised Fiscal 2026 Guidance Full-year revised guidance reflects the impact of underlying first half performance, as well as the prior-year development and payer settlements recognized in the quarter. The fo…Read full document

Raises Full-Year 2026 Adjusted EBITDA Guidance Management to Host Conference Call and Webcast August 10, 2026 at 4:30 PM ET HENDERSON, Nev., August 10, 2026--(BUSINESS WIRE)--P3 Health Partners Inc. ("P3" or the "Company") (NASDAQ: PIII), a patient-centered and physician-led population health management company, today announced its financial results for the second quarter ended June 30, 2026. "Q2 demonstrates that the business is now executing according to our plan. We delivered $54 million of adjusted EBITDA, with the core business driving improved profitability quarter over quarter. Our results reflect the structural improvements now embedded across our contracts, our network, and our operating model, the work I outlined at the onset of my tenure. That strength gives us the confidence to raise our full-year 2026 adjusted EBITDA outlook and to enter the second half focused on execution," said Dr. Aric Coffman, CEO of P3. Second Quarter 2026 Financial Results At-risk membership was approximately 105,000 members for the second quarter, a decrease of 10% compared to prior year, reflecting previously disclosed intentional network and payer rationalization. Total lives under management were approximately 133,000 for the quarter, including approximately 28,000 lives under management service arrangements. Total revenue was $386 million, an increase of 9% compared with the prior year quarter. Total per-member capitated revenue increased 15% from the same period in the prior year driven by improved network economics, rate progression, and burden of illness performance. Medical margin(1) for the quarter was $97.8 million, or $311 on a per-member-per-month basis. The results include the favorable impact of payer settlements and prior year development recognized in the quarter. Excluding these items, medical margin for the quarter was $52.9 million, or $168 on a per-member-per-month basis. Net income was $15.7 million compared to a net loss of $43.7 million in the prior year quarter. Adjusted EBITDA(1) for the quarter was $54.4 million, or $173 per-member-per-month, compared to a loss of $17.1 million, or negative $49 per-member-per-month in the prior year quarter. Revised Fiscal 2026 Guidance Full-year revised guidance reflects the impact of underlying first half performance, as well as the prior-year development and payer settlements recognized in the quarter. The foregoing 2026 outlook statement represents management's current estimate as of the date of this release. Actual results may differ materially depending on a number of factors. Investors are urged to read the "Cautionary Note Regarding Forward-Looking Statements" included in this release. Management does not assume any obligation to update these estimates. Management to Host Conference Call and Webcast on August 10, 2026 at 4:30 PM ET About P3 Health Partners (NASDAQ: PIII): P3 Health Partners Inc. is a leading population health management company committed to transforming healthcare by improving the lives of both patients and providers. Founded and led by physicians, P3 has an expansive network of more than 2,100 affiliated primary care providers across the country. Our local teams of health care professionals manage the care of thousands of patients in 26 counties across five states. P3 supports primary care providers with value-based care coordination and administrative services that improve patient outcomes and lower costs. Through partnerships with these local providers, the P3 care team creates an enhanced patient experience by navigating, coordinating, and integrating the patient’s care within the healthcare system. For more information, visit www.p3hp.org and follow us on LinkedIn and Facebook.com/p3healthpartners. Non-GAAP Financial Measures In addition to the financial results prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP"), this press release contains certain non-GAAP financial measures as defined by the SEC rules, including Adjusted EBITDA and Adjusted EBITDA PMPM, medical margin, medical margin PMPM, and adjusted operating expense. EBITDA is defined as GAAP net income (loss) before (i) interest, (ii) income taxes and (iii) depreciation and amortization. Adjusted EBITDA is defined as EBITDA, further adjusted to exclude the effect of certain supplemental adjustments, such as (i) mark-to-market warrant gain/loss, (ii) premium deficiency reserves, (iii) equity-based compensation expense, (iv) certain transaction and other related costs and (v) certain other items that we believe are not indicative of our core operating performances. Adjusted EBITDA PMPM is defined as Adjusted EBITDA divided by the number of at-risk Medicare members each month divided by the number of months in the period. We believe these non-GAAP financial measures provide an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other similar companies. Medical margin represents the amount earned from capitation revenue after medical claims expenses are deducted and medical margin PMPM is defined as medical margin divided by the number of Medicare members each month divided by the number of months in the period. Medical claims expenses represent costs incurred for medical services provided to our members. As our platform grows and matures over time, we expect medical margin to increase in absolute dollars; however, medical margin PMPM may vary as the percentage of new members brought onto our platform fluctuates. New membership added to the platform is typically dilutive to medical margin PMPM. Adjusted operating expense is defined as total operating expense excluding depreciation and amortization and costs that management believes are non-core to the underlying operations of the Company, consisting of (i) medical expense, (ii) premium deficiency reserves, (iii) equity-based compensation, and (iv) certain other items that we believe are not indicative of our core operating performance. We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. In addition, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. The tables at the end of this press release present a reconciliation of Adjusted EBITDA, medical margin to gross profit, medical margin PMPM to gross profit PMPM, and adjusted operating expense to operating expense, which are the most directly comparable financial measures calculated in accordance with GAAP. Key Performance Metrics In addition to our GAAP and non-GAAP financial information, the Company also monitors "at-risk members" to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. At-risk membership represents the approximate number of Medicare members for whom we receive a fixed percentage of premium under capitation arrangements as of the end of a particular period. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "anticipate," "believe," "budget," "contemplate," "continue," "could," "envision," "estimate," "expect," "guidance," "indicate," "intend," "may," "might," "plan," "possibly," "potential," "predict," "probably," "pro-forma," "project," "seek," "should," "target," or "will," or the negative or other variations thereof, and similar words or phrases or comparable terminology, are intended to identify forward-looking statements. These forward-looking statements address various matters, including the Company’s future expected growth strategy and operating performance; and the Company’s ability to execute on its identified strategic improvement opportunities, all of which reflect the Company’s expectations based upon currently available information and data. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected or estimated and you are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in forward-looking statements include, among others, our ability to continue as a going concern; our potential need to raise additional capital to fund our existing operations or develop and commercialize new services or expand our operations; our ability to achieve or maintain profitability; our ability to maintain compliance with our debt covenants in the future, or obtain required waivers from our lenders if future operating performance were to fall below current projections, and if there are material changes to management’s assumptions, we could be required to recognize non-cash charges to operating earnings for goodwill and/or other intangible asset impairment; our ability to identify and develop successful new geographies, physician partners, payors and patients; changes in market or industry conditions, regulatory environment, competitive conditions, and receptivity to our services; our ability to fund our growth and expand our operations; changes in laws and regulations applicable to our business; our ability to maintain our relationships with health plans and other key payors; the impact of fluctuations in risk adjustments; our ability to establish and maintain effective internal controls; our ability to maintain compliance with California regulations related to financial solvency and operational performance; our ability to maintain the listing of our securities on Nasdaq; increased labor costs and medical expense; our ability to recruit and retain qualified team members and independent physicians; and the factors described under Part I, Item 1A. "Risk Factors" and Part II, Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 26, 2026, and in our subsequent filings with the SEC. All information in this press release is as of the date hereof, and we undertake no duty to update or revise this information unless required by law. You are cautioned not to place undue reliance on any forward-looking statements contained in this press release. View source version on businesswire.com: https://www.businesswire.com/news/home/20260810669897/en/ Contacts William HooverInvestor RelationsGilmartin [email protected]

TranscriptFY2026 Q22026-08-10

FY2026 Q2 earnings call transcript

Earnings source - 52 paragraphs
Operator

Please note this event is being recorded. I would now like to turn the conference over to Mr. William Hoover of Investor Relations. Please go ahead.

William Hoover

Thank you, operator, and thank you for joining us today. Before we proceed with the call, I would like to remind everyone that certain statements made during this call are forward-looking statements under the U.S. federal securities law, including statements regarding our financial outlook and long-term target. These forward-looking statements are only predictions and are based largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. These statements are subject to risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations. Additional information concerning factors that could cause actual results to differ from statements made on this call is contained in a periodic report filed with the SEC.

William Hoover

The forward-looking statements made during this call speak only as the date hereof, and the company undertakes no obligation to update or revise these forward-looking statements. We refer to these certain non-GAAP financial measures on this call, including adjusted operating expense, adjusted EBITDA, adjusted EBITDA per member per month, normalized adjusted EBITDA, medical margin, medical margin per member per month, and cash flow. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, the measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures. For example, other companies may calculate similarly titled non-GAAP financial measures differently. Please refer to the appendix of our earnings release for a reconciliation of these non-GAAP financial measures to the most direct comparable GAAP measures.

William Hoover

Information presented on this call is contained in the press release that we issued today and in our SEC filings, which may be accessed from the investor page of the P3 Health Partners website. I will now turn the call over to Aric Coffman, CEO of P3 Health Partners.

Aric Coffman

Good afternoon, and thank you for joining us today to discuss our second quarter results. Q2 represents a continuation of the positive momentum we have built over the last two years and reflects sustained execution against the plan we shared with you at the outset of my tenure. None of this happens without the work of our teams across the country. Their focus, discipline, and their day-to-day execution are what convert strategy into results, and I want to thank them for their dedication they bring to serving our patients, our providers, and payer partners. We delivered $54 million of adjusted EBITDA in the second quarter, bringing our first half total adjusted EBITDA to $80 million, building on the trajectory we established in Q1. Given this strong performance and our confidence in the underlying business, we are raising our full year 2026 outlook.

Aric Coffman

It has been just over two years since I began leading P3, and the results this quarter reflect how much the structural and operational changes we have made across our contracts, our markets, and our operating model continue to compound. We remain focused on medical cost improvement, quality, and burden of illness performance, disciplined growth, and continued operational improvements through people, process, and technology. There are three things to highlight about P3 performance through the first half of 2026. First is operational execution. As we have discussed previously, our operating model is centered around medical cost management, quality execution, provider engagement, and coding accuracy. Across the organization, we are expanding our point of care tools ahead of schedule, now reaching greater than 65,000 lives across our portfolio, allowing more accurate burden of illness capture and quality gap closures.

Aric Coffman

These AI-enhanced tools reduce the administrative burden for the clinicians as we are meeting our provider partners where they are to drive adoption in daily practice. Our quality performance is tracking ahead of our internal glide path towards four stars on HEDIS and medication adherence measures. Our impact across utilization management and payment integrity are tracking at or above plan, and we will be expanding these programs as part of our contractual reset with payers. Our clinical and care management programs continue to expand with a focus on high risk, rising risk patients, and transitions of care. The impact from our operating model can be seen in our Q2 MA medical expense trend and quality trajectory. Medical cost trend across our MA population for the first half of 2026 was 1.8% lower than full year 2025, which Leif will cover in more detail.

Aric Coffman

This is a significant and sustained differentiator in the sector when compared to peers running 5%-7% year-over-year. Quality remains one of the most important levers in Medicare Advantage, both for the patients we serve and for the strength of our payer relationships. Strong quality performance is not only linked with better patient outcomes, it directly supports better economic terms and deeper alignment with our payer partners, and is an area where P3 continues to differentiate. Quality is tracking well for the first half of the year, where we are ahead of glide path to get to four-star on HEDIS and medication adherence measures. We have also improved our process around alternative submissions, driving three times the total submissions at this point compared to the prior year, with total members impacted by quality submissions up close to 20% from Q1.

Aric Coffman

This progress reflects the scale and effectiveness of our improved processes. Second is our payer partnerships and our contract structure design work we began 18 months ago. We focused on redesigning and enhancing our risk profile, funding, and cost accountability with our key payer partners, including enhanced funding mechanisms, revising risk-sharing arrangements, delegation expansion, and improving alignment around medical cost accountability. As you look at the composition of this quarter's results, a portion of our Q2 performance reflects one-time non-recurring items across multiple payer contracts. These settlements are more than a financial event. They reflect the trust our payer partners continue to place in P3 and our shared commitment to taking care of our patients and provider partners. Third is growth. Our engagement in Nebraska that we shared with you earlier this year continues to progress positively.

Aric Coffman

We are executing on our expected trajectory and look forward to sharing more as it matures. We favor a deliberate glide path on geographic expansion. Understand the population, build the clinical and operational infrastructure, and validate performance before taking on full risk. This sequencing reduces downside exposure and positions us to enter full risk in a disciplined way. In addition, with our existing partners, we continue to explore growth opportunities in both current and new geographies. Overall, our second quarter was strong, and it reflects the compounding benefit of the work we have done over the past two years. We have two quarters remaining in 2026, and our attention remains on sustaining that execution. These results reinforce our confidence that the business has moved into a phase of durable, more predictable earnings, and that trajectory is what gives us the confidence to raise our outlook for the year.

Aric Coffman

The core economic levers that drive the business, our contract structure, our operating model, and our clinical execution are increasingly within our control. Our work is never finished, but the framework for 2026 is solid, and we remain focused on executing with the same discipline that got us here. Our success is predicated on the engagement of our clinician partners. I'm proud of the work we have established with the P3 Restore program to impact clinician engagement, improve practice sustainability, and bring solutions to help them succeed. To speak more about that and to discuss our clinical performance, I'll turn the call over to Amir.

Amir Bacchus

Thank you, Aric. I want to spend a few minutes on the clinical work driving the financial results we are delivering. The MedEx trend performance we are seeing this quarter is not accidental. It reflects deliberate clinical programs, expanding point-of-care technology, and disciplined utilization management and payment integrity execution, all built around the care enablement model. I will walk through where that work is showing up most clearly this quarter. Our point-of-care technology deployment is ahead of plan, tracking to roughly 110% of our original year-end goal. Where the tool is in use, the results are clear. Providers are addressing nearly 90% of care gaps at the point of care, with capture rates running several points ahead of our broader enterprise average.

Amir Bacchus

Today, the tool is open in roughly half of eligible visits, and we are closing that gap through the in-office training embedded directly into provider offices rather than relying on remote onboarding. Our provider network and clinical team saw 87% of our patients through the second quarter, two points ahead of our internal glide path, including 99.5% of our highest-risk members enterprise-wide, well ahead of the 90% glide path for that population. Seeing members regularly is foundational to how we care for our population. Our care management team and senior wellness centers play a key role in that effort, extending access and creating additional touch points with our highest-risk patients beyond the traditional practice setting, helping us reach and see more of our population. Together, this engagement allows us to connect patients to the right clinical programs, monitor chronic conditions proactively, and intervene earlier when care is needed.

Amir Bacchus

It is a key driver of both quality outcomes and the overall health of our patients. Our utilization management program is built around a simple principle. Patients should receive care in the right setting, delivered by the right level of provider at the right time. We have expanded our review of prepaid hospital billing to confirm medical records support the level of care submitted and broadened our review of appropriate site of care, helping direct patients to home health support rather than a skilled nursing facility when that is the better clinical fit. That work has driven a 17% year-to-date redirect rate from skilled nursing to home, reflecting our commitment to caring for patients in the setting that is best for their recovery and well-being while remaining responsible stewards of the healthcare resources we are entrusted with.

Amir Bacchus

We also continue to invest in our provider community through P3 Restore, our clinician coaching program. In the first half of the year, we expanded the program across four markets, and clinicians completing the program report meaningful improvement across measures like stress management, leadership confidence, and practice satisfaction. This work supports the stability and engagement of the provider network our model depends on.

Amir Bacchus

In this quarter, we expanded the offering further to include asynchronous education and CME credit, making it easier for more of our provider community to participate. In total, this work reflects a clinical foundation that is increasingly built for scale, from how we engage patients and support providers to how we manage utilization and ensure payment accuracy. It is the operating discipline that underpins the financial results you are about to hear. With that, I will turn the call over to Leif to walk you through our financials.

Leif Pedersen

Thank you, Amir, and good afternoon. Q2 was another strong quarter. We delivered $54 million of adjusted EBITDA, including approximately $9 million of underlying adjusted EBITDA, excluding favorable contractual settlements and prior-year development. Importantly, the underlying business is profitable and improved quarter over quarter. The settlements recognized in the quarter reflect the constructive resolution of legacy contractual matters and strong alignment with several of our payer partners. More broadly, our results demonstrate the cumulative impact of the foundational changes we have made across the business, including improved payer economics, better medical expense performance, and disciplined clinical and operational execution. This afternoon, I will cover three areas. First, our financial performance for the quarter, including an update on our medical cost trend. Second, our capital position and liquidity. Third, our revised outlook for the remainder of 2026.

Leif Pedersen

Starting with membership, total at-risk membership at the end of Q2 was approximately 105,000, compared to 116,000 in Q2 2025. Consistent with what we have shared previously, the year-over-year decline reflects the deliberate portfolio actions we took throughout 2025, including the exit of arrangements that did not meet our economic thresholds. The membership base we are operating from today is more concentrated in relationships where our model performs best. In addition to our at-risk membership, we manage approximately 28,000 lives through management services arrangements, bringing total lives under management to approximately 133,000. We began reporting this metric in Q1 because it provides a more complete view of the scale of the P3 platform and reflects our ability to support payer and provider partners across different levels of risk and service. Moving to revenue, Q2 revenue was $386 million, compared to $356 million in the same period of 2025.

Leif Pedersen

Despite a lower membership base, per-member funding for our at-risk population improved approximately 15% year-over-year, reflecting continual success in rate progression, contractual restructuring, and further maturation of our burden of illness documentation across our network. Medical claims expense for the quarter was $269 million. The results include approximately $45 million of favorable payer settlements and prior year development. Year to date, our MA medical cost trend is 1.8% below full year 2025 baseline, when fully excluding the favorable payer settlements and adjusting for prior year development. Medical margin for the quarter was $98 million, or $311 PMPM. Medical loss ratio for the quarter was 85.6% when adjusted for the favorable payer settlements and prior year development noted above. These results reflect the improved payer economics, clinical execution, and enhanced payment integrity workflows, along with the utilization management progress previously described.

Leif Pedersen

Adjusted operating expense for the quarter was $32 million, consistent with cost structure we have established over the prior 18 months. That total includes continued investment in professional fees supporting improved coding and documentation, as well as infrastructure costs associated with standing up our Nebraska market. We continue to direct investment towards frontline capabilities that drive medical cost and quality performance while remaining diligent about cost discipline across the rest of the organization. Adjusted EBITDA for Q2 was $54 million, compared to a loss of $17 million in the same period of 2025. Of that result, approximately $45 million reflects the favorable payer settlements and prior-year developments noted previously. Excluding those items, underlying Q2 adjusted EBITDA was approximately $9 million, reflecting the core operating performance of the business.

Leif Pedersen

These Q2 results bring us to adjusted EBITDA of $80 million for the first half of 2026, compared to a loss of $39 million in the first half of 2025. Of the $62 million in favorable payer settlements and prior year development recognized across the first half, $17 million was recognized in Q1 and $45 million in Q2. Excluding those items, underlying first half adjusted EBITDA was approximately [$18 million]. For us, this is an important milestone. It shows the improvement in our economics is not solely dependent on contractual settlements or prior period development. The core business itself is now generating positive adjusted EBITDA. On the balance sheet, we ended the quarter with $21 million in cash and equivalents. Consistent with the liquidity framework we have communicated, we continue to manage capital with discipline while maintaining focus on operational execution and financial stability.

Leif Pedersen

Now moving to our updated 2026 outlook. We are raising our full year 2026 adjusted EBITDA outlook to a range of $80 million-$110 million, with a midpoint of $95 million. The revision reflects the favorable contractual settlements and prior year developments recognized in the first half, as well as continued improvement in our expectations for the remainder of the year.

Leif Pedersen

We are also tightening the range as we gain further visibility into the back half of the year. Our confidence is rooted in the improved economics now flowing through our results and the operating discipline we have established across the business. We remain mindful of the typical seasonal build in medical expense trend in the second half of the year, and we are actively managing that dynamic through the same care management, utilization management, and payment integrity programs Amir described. With that, I'll turn it back to Aric for closing comments.

Aric Coffman

Thanks, Leif. Before we open the line for questions, I want to leave you with three takeaways from the quarter. First, the structural work we set out to do two years ago is now fully embedded in how we run the business. Contract restructuring, network concentration, and operational redesign continue to translate directly into our economics, and we are seeing that discipline compound quarter after quarter. There is more work ahead of us in the back half of the year, and it remains a top priority. Second, our clinical model, utilization management, and payment integrity processes continue to set us apart. From the growth in our patient scene, to our quality performance, to the continued scaling of our point of care technology, we continue to drive down total cost of care and improve outcomes.

Aric Coffman

These efforts are reflected in our MA medical cost trend this year, running nearly 2% below our 2025 baseline. We expect that gap to remain a meaningful point of differentiation as the year progresses. Third, we head into the back half of the year in a stronger position than where we started it. We are raising our full year outlook to $80 million-$110 million, and our fundamentals continue to mature. Our results are becoming more predictable. We are proud of the progress this business has made, and we remain focused on executing with the same discipline that got us here. With that, operator, please open the line for questions.

Operator

Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. Our first question for today will come from Ryan Langston with TD Cowen. Please go ahead.

Ryan Langston

Thanks. Good afternoon. On the payer settlement, can you walk us through specifically what that is related to? Is that impacting both revenue and expense, and are you able to explicitly size the settlement in the quarter?

Leif Pedersen

Hey, Ryan, it's Leif. Appreciate the question.

Ryan Langston

Hey, Leif.

Leif Pedersen

I think the easiest way to kind of walk through that is I'll just reiterate what that bridge is, first and foremost. Q2 adjusted EBITDA was $54.4 million, less $45 million of favorable prior period development and payer settlements. Just to let you know, Ryan, specifically, the payer settlement amount was $41 million, and that did not affect revenue. That only affected medical claims expense.

Ryan Langston

Got it. Okay, that's helpful. Then maybe anything, I'm sorry if I missed it, maybe anything on just sort of seasonality of earnings, medical margin, EBITDA through the back half of this year?

Leif Pedersen

Yeah. As you think about where we're at year to date, we were at $80 million for the six months ended June 30th, for a reported EBITDA number. Underlying that is $18 million of embedded EBITDA, and $62 million of prior period settlements that came from Q1 and Q2. The midpoint for guidance in the back half is $95 million. If you just took where we're at today and you assume that we would get to a midpoint from an underlying EBITDA perspective, that would be about $15 million of additional EBITDA in the back half of the year. That takes into consideration both what we expect there to be some normal, traditional industry pressure from the backside of the year in medical expense from utilization, but that is being offset by in-year programmatics that are going to drive and offset some of that cost.

Leif Pedersen

I'm going to take it a step further for you, Ryan, as well. Just as we think about it, Aric spoke to this in his opening comments, is we are seeing a 1.8% reduction in MedEx trend when you look at full year 2025 and you compare that to the six months ended 6/30, and we are down 1.8%. That's attributable to a number of things that include the programmatics that we have in place, also is contributing to that decrease is some of the network curation and specific actions that we took with our membership population exiting 2025. Then there were some other factors as it relates to benefit plan reductions or benefit reductions within our payer partner plans that they offered in 2026.

Ryan Langston

Okay, got it. Just one last one for me, and then I will hop back in the queue. I guess any insight into how your plans price benefits for 2027, and then just maybe more specifically, some of the plans have talked about further market exits or further plan exits next year. Any thoughts on if those exits will actually impact your current membership? Thanks.

Aric Coffman

Yeah. Thanks for that. This is Aric. I think some of it is a little bit early to know. We are still in August, and some of those factors will get played out as we get more insight into what the benefit design actually looks like. We have seen some of the same notifications on county exits. We do not expect that to have a major impact on our membership overall in terms of the exits from counties. Then in terms of the benefit design, we will have a much cleaner picture when we get to next earnings call after Q3.

Ryan Langston

Got it. Thank you.

Aric Coffman

You are welcome.

Operator

Your next question will come from Benjamin Haynor with Lake Street Capital Markets. Please go ahead.

Benjamin Haynor

Good afternoon, gentlemen. Thanks for taking the questions. First off, for you, Leif, if I can kind of summarize what you said, it sounds like the core EBITDA that you've generated in the first half of the year is effectively, if you do the same in the back half of the year, that's what gets you to the midpoint of the guidance range. Am I hearing you right there?

Leif Pedersen

I think you're directionally correct in that analysis, Ben. I do think that we have factored in some back half pressure that goes into that, as well as risk rating other opportunities inside the second half of the year.

Benjamin Haynor

Got it. Then on the Nebraska trajectory, it sounds like that's going well. Can you maybe remind us how that tracks, what happens in 2027 before you move to at-risk in 2028, I believe?

Aric Coffman

Yeah, thanks for the question. This is Aric. We will remain in a relationship in 2027, where we are performing services on behalf of our partner in Nebraska. We will continue to build out and scale the programmatics that we put in place there, and we do not move into the full risk arrangement until 2028.

Benjamin Haynor

Okay, got it. Then, it sounds like the point-of-care tools have seen quite the adoption thus far. Half of office visits, that is pretty impressive. Where do you think you can get, and is there any kind of additional feedback that you have gotten that you can share on those tools and that program?

Aric Coffman

Well, we continue to roll out the program, and we get more interest from our providers all the time. Really, as we started the program, because again, it is a novel program that we started really a year or so ago. Getting the interest as the providers start to talk more about it and understand what it is to actually make the workflow more easy is the key, right?

Aric Coffman

As we work through our Tier 1 providers and then now looking and expanding into our Tier 2 providers, and them talking about the value that it brings to improve their workflow, that is kind of the magic that allows us to get more traction within the tool, and then to drive better performance, because not only can we show them gaps in care opportunities, but we can show them a better understanding from a diagnostic standpoint and the clinical diagnoses that they have had for suspect diagnoses as well, to improve the care of the patients. Because you link those with our other team members, whether it is our high-risk management that we deal with on some of those populations within those practices, as well as our care management teams.

Benjamin Haynor

Is it through all the Tier 1 providers and just rolling out into Tier 2, or how far along in the process is it?

Aric Coffman

Almost all of our Tier 1s, but at the same time, we are expanding into Tier 2s. The Tier 2s are getting more traction every day. Ben, if you want, we can break down those numbers exactly for you as we go, but there's been a number of really good actions that we've had with FQHCs, et cetera, in how they're looking and how they utilize the information.

Benjamin Haynor

Okay, got it. Well, congrats on the progress, gentlemen, and thanks for taking the questions.

Aric Coffman

Thanks, Ben.

Operator

This concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks. Please go ahead.

Aric Coffman

Thanks, everyone, for joining, and that will conclude the call.

Operator

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Investor releaseQuarter not tagged2026-08-07

Earnings To Watch: P3 Health Partners Inc (PIII) Q2 2026 -- GF Value Sees 48% Downside

GuruFocus.com

This article first appeared on GuruFocus. P3 Health Partners Inc (NASDAQ:PIII) is set to release its Q2 2026 earnings on Aug 10, 2026. The consensus estimate for Q2 2026 revenue is 377.95 million, and the earnings are expected to come in at -1.9 per share. The full year 2026's revenue is expected to be $1524.15 million and the earnings are expected to be $-7.58 per share. More detailed estimate data can be found on the Forecast page Warning! GuruFocus has detected 7 Warning Signs with PIII. Is PIII fairly valued? Test your thesis with our free DCF calculator. Over the past 90 days, revenue estimates for P3 Health Partners Inc (NASDAQ:PIII) have declined from $1539.35 million to $1524.15 million for the full year 2026, while increasing from $1603.30 million to $1646.40 million for 2027. Earnings estimates for P3 Health Partners Inc (NASDAQ:PIII) have increased from $-11.77 per share to $-7.58 per share for the full year 2026, but declined from $-0.02 per share to $-3.00 per share for 2027 over the same period. In the previous quarter of 2026-03-31, P3 Health Partners Inc's (NASDAQ:PIII) actual revenue was $386.39 million, which missed analysts' revenue expectations of $391.45 million by -1.29%. P3 Health Partners Inc's (NASDAQ:PIII) actual earnings were $0.32 per share, which beat analysts' earnings expectations of $-3.73 per share by 108.58%. After releasing the results, P3 Health Partners Inc (NASDAQ:PIII) was up by 180.15% in one day. Based on the one-year price targets offered by 2 analysts, the average target price for P3 Health Partners Inc (NASDAQ:PIII) is $14 with a high estimate of $14 and a low estimate of $14. The average target implies an upside of 28.56% from the current price of $10.89. Based on GuruFocus estimates, the estimated GF Value for P3 Health Partners Inc (NASDAQ:PIII) in one year is $5.70, suggesting a downside of -47.66% from the current price of $10.89. Based on the consensus recommendation from 2 brokerage firms, P3 Health Partners Inc's (NASDAQ:PIII) average brokerage recommendation is currently 2.50, indicating an "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.

Investor releaseQuarter not tagged2026-07-21

P3 Health Partners Schedules Second Quarter 2026 Earnings Release and Conference Call

Business Wire

HENDERSON, Nev., July 21, 2026--(BUSINESS WIRE)--P3 Health Partners Inc. ("P3" or the "Company") (NASDAQ: PIII), a patient-centered and physician-led population health management company, today announced that the Company plans to release its financial results for second quarter 2026 on Monday, August 10, 2026. In connection with the release, management will host a conference call to discuss the financial results at 1:30pm PT/ 4:30pm ET the same day. About P3 Health Partners (NASDAQ: PIII): P3 Health Partners Inc. is a leading population health management company committed to transforming healthcare by improving the lives of both patients and providers. Founded and led by physicians, P3 has an expansive network of more than 2,800 affiliated primary care providers across the country. Our local teams of health care professionals manage the care of thousands of patients in 24 counties across four states. P3 supports primary care providers with value-based care coordination and administrative services that improve patient outcomes and lower costs. Through partnerships with these local providers, the P3 care team creates an enhanced patient experience by navigating, coordinating, and integrating the patient’s care within the healthcare system. For more information, visit https://p3hp.org/ and follow us on LinkedIn and Facebook. View source version on businesswire.com: https://www.businesswire.com/news/home/20260721179510/en/ Contacts William HooverInvestor RelationsGilmartin [email protected]

Investor releaseQuarter not tagged2026-05-15

P3 Health Partners Announces First Quarter 2026 Results

Business Wire
Raises Full-Year 2026 Adjusted EBITDA Guidance Management to Host Conference Call and Webcast May 14, 2026 at 4:30 PM ET HENDERSON, Nev., May 14, 2026--(BUSINESS WIRE)--P3 Health Partners Inc. ("P3" or the "Company") (NASDAQ: PIII), a patient-centered and physician-led population health management company, today announced its financial results for the first quarter ended March 31, 2026. "Q1 represents a meaningful turning point for the business. The $26 million of adjusted EBITDA we delivered this quarter reflects the cumulative impact of two years of deliberate work, including contract restructuring, network concentration, and operational redesign. Based on the strength of Q1 and our confidence in the underlying trajectory, we are raising our full-year 2026 adjusted EBITDA outlook to a midpoint of $40 million," said Dr. Aric Coffman, CEO of P3. First Quarter 2026 Financial Results At-risk membership was approximately 106,000 members for the first quarter, a decrease of 10% compared to prior year. The decrease reflects previously disclosed intentional network and payer rationalization. Total lives under management were approximately 135,000 for the quarter, including the approximately 29,000 lives under management service arrangements. Total revenue was $386 million, an increase of 4% compared to the first quarter of the prior year. Total per-member revenue increased 14% from the same period in the prior year driven by contractual restructuring, rate progression, and burden of illness performance. Medical margin(1) for the quarter was $73.7 million, or $231 on a per-member basis. The results include the favorable impact of prior year development and payer settlements recognized in the quarter; excluding these items, medical margin for the quarter was $56.1 million. Net income was $3.0 million compared to a net loss of $44.2 million in the prior year quarter. Adjusted EBITDA(1) for the quarter was $25.8 million, or $81 PMPM. Revised Fiscal 2026 Guidance Full-year revised guidance reflects the impact of underlying first quarter performance, as well as the prior-year development and payer settlements recognized in the quarter. The foregoing 2026 outlook statement represents management's current estimate as of the date of this release. Actual results may differ materially depending on a number of factors. Investors are urged to read the "Cautionary Note Regardin…Read full document

Raises Full-Year 2026 Adjusted EBITDA Guidance Management to Host Conference Call and Webcast May 14, 2026 at 4:30 PM ET HENDERSON, Nev., May 14, 2026--(BUSINESS WIRE)--P3 Health Partners Inc. ("P3" or the "Company") (NASDAQ: PIII), a patient-centered and physician-led population health management company, today announced its financial results for the first quarter ended March 31, 2026. "Q1 represents a meaningful turning point for the business. The $26 million of adjusted EBITDA we delivered this quarter reflects the cumulative impact of two years of deliberate work, including contract restructuring, network concentration, and operational redesign. Based on the strength of Q1 and our confidence in the underlying trajectory, we are raising our full-year 2026 adjusted EBITDA outlook to a midpoint of $40 million," said Dr. Aric Coffman, CEO of P3. First Quarter 2026 Financial Results At-risk membership was approximately 106,000 members for the first quarter, a decrease of 10% compared to prior year. The decrease reflects previously disclosed intentional network and payer rationalization. Total lives under management were approximately 135,000 for the quarter, including the approximately 29,000 lives under management service arrangements. Total revenue was $386 million, an increase of 4% compared to the first quarter of the prior year. Total per-member revenue increased 14% from the same period in the prior year driven by contractual restructuring, rate progression, and burden of illness performance. Medical margin(1) for the quarter was $73.7 million, or $231 on a per-member basis. The results include the favorable impact of prior year development and payer settlements recognized in the quarter; excluding these items, medical margin for the quarter was $56.1 million. Net income was $3.0 million compared to a net loss of $44.2 million in the prior year quarter. Adjusted EBITDA(1) for the quarter was $25.8 million, or $81 PMPM. Revised Fiscal 2026 Guidance Full-year revised guidance reflects the impact of underlying first quarter performance, as well as the prior-year development and payer settlements recognized in the quarter. The foregoing 2026 outlook statement represents management's current estimate as of the date of this release. Actual results may differ materially depending on a number of factors. Investors are urged to read the "Cautionary Note Regarding Forward-Looking Statements" included in this release. Management does not assume any obligation to update these estimates. Management to Host Conference Call and Webcast on May 14, 2026 at 4:30 PM ET About P3 Health Partners (NASDAQ: PIII): P3 Health Partners Inc. is a leading population health management company committed to transforming healthcare by improving the lives of both patients and providers. Founded and led by physicians, P3 has an expansive network of more than 2,300 affiliated primary care providers across the country. Our local teams of health care professionals manage the care of thousands of patients in 26 counties across five states. P3 supports primary care providers with value-based care coordination and administrative services that improve patient outcomes and lower costs. Through partnerships with these local providers, the P3 care team creates an enhanced patient experience by navigating, coordinating, and integrating the patient’s care within the healthcare system. For more information, visit www.p3hp.org and follow us on LinkedIn and Facebook.com/p3healthpartners. Non-GAAP Financial Measures In addition to the financial results prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP"), this press release contains certain non-GAAP financial measures as defined by the SEC rules, including Adjusted EBITDA and Adjusted EBITDA PMPM, medical margin, medical margin PMPM, and adjusted operating expense. EBITDA is defined as GAAP net income (loss) before (i) interest, (ii) income taxes and (iii) depreciation and amortization. Adjusted EBITDA is defined as EBITDA, further adjusted to exclude the effect of certain supplemental adjustments, such as (i) mark-to-market warrant gain/loss, (ii) premium deficiency reserves, (iii) equity-based compensation expense, (iv) certain transaction and other related costs and (v) certain other items that we believe are not indicative of our core operating performances. Adjusted EBITDA PMPM is defined as Adjusted EBITDA divided by the number of at-risk Medicare members each month divided by the number of months in the period. We believe these non‐GAAP financial measures provide an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other similar companies. Medical margin represents the amount earned from capitation revenue after medical claims expenses are deducted and medical margin PMPM is defined as medical margin divided by the number of Medicare members each month divided by the number of months in the period. Medical claims expenses represent costs incurred for medical services provided to our members. As our platform grows and matures over time, we expect medical margin to increase in absolute dollars; however, medical margin PMPM may vary as the percentage of new members brought onto our platform fluctuates. New membership added to the platform is typically dilutive to medical margin PMPM. Adjusted operating expense is defined as total operating expense excluding depreciation and amortization and costs that management believes are non-core to the underlying operations of the Company, consisting of (i) medical expense, (ii) premium deficiency reserves, (iii) equity-based compensation, and (iv) certain other items that we believe are not indicative or our core operating performance. We do not consider these non‐GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non‐GAAP financial measures. In addition, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. The tables at the end of this press release present a reconciliation of Adjusted EBITDA, medical margin to gross profit, medical margin PMPM to gross profit PMPM, and adjusted operating expense to operating expense, which are the most directly comparable financial measures calculated in accordance with GAAP. Key Performance Metrics In addition to our GAAP and non-GAAP financial information, the Company also monitors "at-risk members" to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. At-risk membership represents the approximate number of Medicare members for whom we receive a fixed percentage of premium under capitation arrangements as of the end of a particular period. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "anticipate," "believe," "budget," "contemplate," "continue," "could," "envision," "estimate," "expect," "guidance," "indicate," "intend," "may," "might," "plan," "possibly," "potential," "predict," "probably," "pro-forma," "project," "seek," "should," "target," or "will," or the negative or other variations thereof, and similar words or phrases or comparable terminology, are intended to identify forward-looking statements. These forward-looking statements address various matters, including the Company’s future expected growth strategy and operating performance; and the Company’s ability to execute on its identified strategic improvement opportunities, all of which reflect the Company’s expectations based upon currently available information and data. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected or estimated and you are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in forward-looking statements include, among others, our ability to continue as a going concern; our potential need to raise additional capital to fund our existing operations or develop and commercialize new services or expand our operations; our ability to achieve or maintain profitability; our ability to maintain compliance with our debt covenants in the future, or obtain required waivers from our lenders if future operating performance were to fall below current projections, and if there are material changes to management’s assumptions, we could be required to recognize non-cash charges to operating earnings for goodwill and/or other intangible asset impairment; our ability to identify and develop successful new geographies, physician partners, payors and patients; changes in market or industry conditions, regulatory environment, competitive conditions, and receptivity to our services; our ability to fund our growth and expand our operations; changes in laws and regulations applicable to our business; our ability to maintain our relationships with health plans and other key payors; the impact of fluctuations in risk adjustments; our ability to establish and maintain effective internal controls; our ability to maintain compliance with California regulations related to financial solvency and operational performance; our ability to maintain the listing of our securities on Nasdaq; increased labor costs and medical expense; our ability to recruit and retain qualified team members and independent physicians; and the factors described under Part I, Item 1A. "Risk Factors" and Part II, Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 26, 2026, and in our subsequent filings with the SEC. All information in this press release is as of the date hereof, and we undertake no duty to update or revise this information unless required by law. You are cautioned not to place undue reliance on any forward-looking statements contained in this press release. View source version on businesswire.com: https://www.businesswire.com/news/home/20260514491279/en/ Contacts David Deuchler Investor Relations Gilmartin Group [email protected]

Investor releaseQuarter not tagged2026-05-15

P3 Health Partners Inc (PIII) Q1 2026 Earnings Call Highlights: Surpassing Expectations and ...

GuruFocus.com
This article first appeared on GuruFocus. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. P3 Health Partners Inc (NASDAQ:PIII) reported $26 million of adjusted EBITDA in Q1 2026, exceeding internal expectations. The company raised its full-year 2026 outlook due to strong Q1 performance and ongoing momentum. Significant improvements in payer contract structures have led to a 15% year-over-year increase in MA funding rates. Operational execution has improved, with a flat Q1 MA medical expense trend compared to a 7% trend in the industry. The company has strengthened its financial position by converting $250 million of debt to preferred equity, enhancing long-term balance sheet flexibility. Total at-risk membership declined from 118,000 in Q1 2025 to 106,000 in Q1 2026 due to deliberate portfolio actions. Despite improvements, the company still faces challenges in expanding delegation beyond the current 63% of membership. The company is managing a lower membership base, which could impact future revenue growth. There is ongoing variability in claims development and full-year cost expectations, which could affect financial outcomes. The company continues to face industry-wide challenges, such as the need for strong provider alignment and effective medical cost management. Warning! GuruFocus has detected 6 Warning Signs with PIII. Is PIII fairly valued? Test your thesis with our free DCF calculator. Q: Can you discuss the utilization trends observed in the first quarter, particularly regarding Parts A and B, and the expectations for Part D MLRs as the year progresses? A: Eric Kaufman, CEO, explained that they have significantly reduced Part D exposure and are continuing to do so. Leif, CFO, added that there was a notable reduction in Part B expenses, while Part A remained predominantly flat. Q: Could you break down the $18 million of positive prior year development (PYD) and payer settlements? Was any positive PYD reestablished back into reserves? A: Leif, CFO, clarified that 65% of the $17 million was related to favorable prior year development of reserves, and 35% was due to payer settlements. He confirmed that the disclosed amount flowed through the period, and they maintained consistency with their reserve methodology. Q: How do the recent financial results and conversion to prefe…Read full document

This article first appeared on GuruFocus. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. P3 Health Partners Inc (NASDAQ:PIII) reported $26 million of adjusted EBITDA in Q1 2026, exceeding internal expectations. The company raised its full-year 2026 outlook due to strong Q1 performance and ongoing momentum. Significant improvements in payer contract structures have led to a 15% year-over-year increase in MA funding rates. Operational execution has improved, with a flat Q1 MA medical expense trend compared to a 7% trend in the industry. The company has strengthened its financial position by converting $250 million of debt to preferred equity, enhancing long-term balance sheet flexibility. Total at-risk membership declined from 118,000 in Q1 2025 to 106,000 in Q1 2026 due to deliberate portfolio actions. Despite improvements, the company still faces challenges in expanding delegation beyond the current 63% of membership. The company is managing a lower membership base, which could impact future revenue growth. There is ongoing variability in claims development and full-year cost expectations, which could affect financial outcomes. The company continues to face industry-wide challenges, such as the need for strong provider alignment and effective medical cost management. Warning! GuruFocus has detected 6 Warning Signs with PIII. Is PIII fairly valued? Test your thesis with our free DCF calculator. Q: Can you discuss the utilization trends observed in the first quarter, particularly regarding Parts A and B, and the expectations for Part D MLRs as the year progresses? A: Eric Kaufman, CEO, explained that they have significantly reduced Part D exposure and are continuing to do so. Leif, CFO, added that there was a notable reduction in Part B expenses, while Part A remained predominantly flat. Q: Could you break down the $18 million of positive prior year development (PYD) and payer settlements? Was any positive PYD reestablished back into reserves? A: Leif, CFO, clarified that 65% of the $17 million was related to favorable prior year development of reserves, and 35% was due to payer settlements. He confirmed that the disclosed amount flowed through the period, and they maintained consistency with their reserve methodology. Q: How do the recent financial results and conversion to preferred stock impact potential payer partnerships and expansion? A: Eric Kaufman, CEO, stated that demonstrating positive momentum and an improved balance sheet helps in growth prospects. A healthy balance sheet supports their strategy of expanding delegation, which improves cash flow and speeds up the timing of financial impacts. Q: What is the pathway to increase delegation beyond the current 63%? A: Eric Kaufman, CEO, mentioned that they have a glide path to achieve delegation with payers in certain geographies. This involves pre-delegation audits and testing, and they expect to stair-step this process over the next two years. Q: How do you plan to sustain the positive financial trajectory for the rest of 2026? A: Eric Kaufman, CEO, emphasized that the structural work, clinical model, and operational processes are producing results. They are focused on sustaining execution and have raised their full-year outlook, with improved predictability and operating fundamentals. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Investor releaseQuarter not tagged2026-05-15

P3 Health Partners Q1 Swings to Earnings, Revenue Rises

MT Newswires

P3 Health Partners (PIII) reported Q1 earnings late Thursday of $0.32 per diluted share, swinging fr

Investor releaseQuarter not tagged2026-05-15

P3 Health Partners Inc. Q1 2026 Earnings Call Summary

Moby
Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management characterizes Q1 2026 as a fundamental inflection point resulting from a two-year framework of contract restructuring and market optimization. Performance was driven by a 15% year-over-year improvement in Medicare Advantage funding rates, achieved through redesigned risk funding and cost accountability structures. The company reported a nearly flat medical cost trend, significantly outperforming the industry average of 7% or higher, attributed to Tier 1 provider concentration and delegated utilization management. Strategic focus has shifted toward 'delegation-oriented growth,' where P3 controls claims payment and care management to improve data transparency and cash flow timing. The organization has exited underperforming arrangements to concentrate membership in relationships where the P3 model demonstrates the highest economic performance. Management notes that the current macro environment, including CMS benchmark updates and industry-wide benefit rationalization, favors their local market operating model. Full-year 2026 adjusted EBITDA guidance was raised to a range of $20 million to $60 million, reflecting confidence in the underlying operating trajectory. The company plans to expand delegated functions beyond the current 63% of membership, targeting a two-year 'stair-stepped' glide path for markets currently under limited delegation. Future growth will prioritize markets with clear pathways toward deeper delegation and long-term partnership stability rather than pursuing scale alone. Guidance assumes continued execution against medical cost initiatives and normal variability in claims development throughout the remainder of the year. Management expects the P3 Restore program and high-risk clinical support systems to continue ramping up, further supporting quality and cost management goals. Q1 results included $17 million of favorable prior-year development and payer settlements, which accounted for a significant portion of the $26 million adjusted EBITDA. A strategic capital transaction on April 28th converted approximately $250 million of debt into preferred equity to address NASDAQ minimum stockholders' equity requirements. The company secured an agreement to issue up to $70 million in add…Read full document

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management characterizes Q1 2026 as a fundamental inflection point resulting from a two-year framework of contract restructuring and market optimization. Performance was driven by a 15% year-over-year improvement in Medicare Advantage funding rates, achieved through redesigned risk funding and cost accountability structures. The company reported a nearly flat medical cost trend, significantly outperforming the industry average of 7% or higher, attributed to Tier 1 provider concentration and delegated utilization management. Strategic focus has shifted toward 'delegation-oriented growth,' where P3 controls claims payment and care management to improve data transparency and cash flow timing. The organization has exited underperforming arrangements to concentrate membership in relationships where the P3 model demonstrates the highest economic performance. Management notes that the current macro environment, including CMS benchmark updates and industry-wide benefit rationalization, favors their local market operating model. Full-year 2026 adjusted EBITDA guidance was raised to a range of $20 million to $60 million, reflecting confidence in the underlying operating trajectory. The company plans to expand delegated functions beyond the current 63% of membership, targeting a two-year 'stair-stepped' glide path for markets currently under limited delegation. Future growth will prioritize markets with clear pathways toward deeper delegation and long-term partnership stability rather than pursuing scale alone. Guidance assumes continued execution against medical cost initiatives and normal variability in claims development throughout the remainder of the year. Management expects the P3 Restore program and high-risk clinical support systems to continue ramping up, further supporting quality and cost management goals. Q1 results included $17 million of favorable prior-year development and payer settlements, which accounted for a significant portion of the $26 million adjusted EBITDA. A strategic capital transaction on April 28th converted approximately $250 million of debt into preferred equity to address NASDAQ minimum stockholders' equity requirements. The company secured an agreement to issue up to $70 million in additional preferred equity, with $30 million already issued to date to strengthen the balance sheet. Total lives under management reached approximately 135,000, including 29,000 lives under new management service arrangements like the Nebraska partnership. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted a larger proactive reduction in Part B costs for 2026 compared to 2025, while Part A remained predominantly flat. The company is actively reducing its Part D exposure in all contracts beyond 2026 to mitigate risk from members hitting out-of-pocket maximums. The $17 million benefit was split approximately 65% from favorable prior-year reserve development and 35% from payer settlements. Management confirmed they did not reduce internal reserve pads or IBNR estimates, maintaining a consistent methodology despite the favorable development. CEO Aric Coffman stated that the improved balance sheet and positive momentum help attract new prospects and support the expansion of delegated functions. Delegation is viewed as a critical lever for speeding up the realization of surplus dollars and improving overall business cash flow.

TranscriptFY2026 Q12026-05-14

FY2026 Q1 earnings call transcript

Earnings source - 45 paragraphs
Operator

Please note this event is being recorded. I would now like to turn the conference over to Gabriella Gabel. Thank you. Over to you.

Gabriella Gabel

Thank you, operator, and thank you for joining us today. Before we proceed with the call, I would like to remind everyone that certain statements made during this call are forward-looking statements under the U.S. Federal Securities laws, including statements regarding our financial outlook and long-term target. These forward-looking statements are only predictions and are based largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These statements are subject to risks and uncertainties that could cause actual results to differ materially from any historical experience or present expectations. Additional information concerning factors that could cause actual results to differ from statements made on this call is contained in our periodic reports filed with the SEC.

Gabriella Gabel

The forward-looking statements made during this call speak only as of the date hereof. The company undertakes no obligation to update or revise these forward-looking statements. We will refer to certain non-GAAP financial measures on this call, including adjusted operating expense, adjusted EBITDA, adjusted EBITDA per member per month, normalized adjusted EBITDA, medical margin, medical margin per member per month, and cash flow. These non-GAAP financial measures are in addition to and not a substitute for or superior to the measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures. For example, other companies may calculate similarly titled non-GAAP financial measures differently. Please refer to the appendix of our earnings release for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures.

Gabriella Gabel

Information presented on this call is contained in the press release that we issued today in our SEC filings, which may be accessed from the investor's page of the P3 Health Partners website. I will now turn the call over to Aric Coffman, CEO of P3 Health Partners.

Aric Coffman

Thanks, Gabby. Good afternoon, and thank you for joining us today to discuss our first quarter results. Q1 represents an inflection point for the business and reflects the continued execution of the two-year framework we have discussed over the past several quarters. The results of which delivered $26 million of adjusted EBITDA in Q1, exceeding internal expectations. The strength of the first quarter, combined with the momentum we are carrying into the rest of the year, provide us confidence to raise our full year 2026 outlook. It has been 24 months since I began leading P3, and we have fundamentally repositioned the organization through contract restructuring, market optimization, operational redesign, and tighter alignment between our clinical and financial infrastructure. The financial results this quarter demonstrate that these structural changes are now translating into measurable economic performance.

Aric Coffman

Importantly, the improvements we are seeing here are not being driven by temporary factors. It is the result of deliberate operational and strategic actions that are now embedded within the business model. The underlying business generated significant positive earnings during the quarter, and our operating fundamentals continue to mature. I would like to acknowledge the hard work and dedication from our teams that made this happen day in and day out. They deepen the relationships with our clinical and payer partners to unlock the potential in the business, buttressed by the improvement in the macro environment. From here, our focus is straightforward: continue expanding medical margin, continue improving contract economics, continuously improve operating execution, and scale the platform and markets and partnerships where our model performs best. Three primary drivers contributed to the improved underlying performance this quarter. First is the improvement in our payer contract structures.

Aric Coffman

Over the past 18 months, we have significantly redesigned how risk, funding, and cost accountability are structured across our payer and network relationships. This includes improved alignment around medical cost accountability, enhanced funding mechanisms, revised risk-sharing structures, greater operational coordination with our payer partners, and a path to delegation in our go-forward contracts. These are not temporary tailwinds. They represent a structural repositioning of the economic framework of the business. We are increasingly seeing payers recognize the value our model creates when operational accountability and economic incentives are fully aligned. As a result, MA funding rates improved approximately 15% year-over-year. Delegated functions expanded across 63% of membership in 2026, and contract alignment improved meaningfully across several of our largest relationships. These changes position the business for more durable and sustainable profitability going forward. Second is operational execution.

Aric Coffman

Over the last two years, we have focused heavily on building a disciplined operating model centered around medical cost management, quality execution, provider engagement, and risk accuracy. We are now seeing those efforts translate into improved financial performance. Across the organization, burden of illness capture and documentation accuracy continue to improve. Stars performance is tracking ahead of our internal glide path. Tier 1 provider concentration continues to increase. Care management engagement amongst our highest acuity populations continues to expand, and operational workflows across utilization management and payment integrity are increasingly effective across markets. Q1 MA medical expense trend was roughly flat compared to full year 2025 medical expense trend.

Aric Coffman

At a time when payers and peer organizations have generally guided to a 7% trend or higher, our trend reflects the compounding impact of tier 1 provider concentration, delegated utilization management, disciplined payment integrity, and we expect it to remain a durable point of differentiation. This isn't a one quarter result evidenced by our full year 2025 MedEx trend, which was under 2% across both Medicare Advantage and ACO populations. At the same time, our operating expense structure remains controlled. We continue to invest selectively in frontline clinical capabilities, provider engagement, and data infrastructure while maintaining focus on overall cost efficiency. The third item is the improving macro environment. The 2026 CMS benchmark update improved the underlying economics of the Medicare Advantage market and reinforced the sustainability of value-based care models that can effectively manage quality and medical cost performance.

Aric Coffman

In addition, benefit design rationalization across the industry is creating more sustainable utilization dynamics across MA populations. We believe the current environment increasingly favors organizations that have the following: strong provider alignment, local market operating capabilities, effective medical cost management, and a scalable clinical infrastructure. P3 is well-positioned within that group. Looking forward, we believe Medicare Advantage environment continues to move in a constructive direction. For organizations like P3 that effectively manage medical costs and execute on quality, this environment increasingly supports long-term margin expansion opportunities. The industry has moved into a period where operational execution and the ability to manage that cost of care effectively is what matters, not simply scale. As we look toward the rest of 2026 and 2027, the actions we have taken over the last two years position us to compete and win in that environment. Our payer relationships remain central to our success.

Aric Coffman

One of the clearest lessons we have learned is that our model performs best when operational accountability and economic accountability are aligned through delegation. When we control key delegated functions, particularly claims payment, utilization management, and care management, we consistently produce stronger medical cost performance, better quality outcomes, improved member engagement, and more favorable economic outcomes for both P3 and our payer partners. As a result, we will prioritize markets and payer relationships with a clear pathway toward deeper delegation, stronger economic alignment, density, and long-term partnership stability. The depth of operational control this model affords us, particularly the integration of claims payment, utilization management, and care management within our platform, is a structural differentiator within the value-based care landscape and one that is difficult to replicate. This level of delegation simplifies our data sharing and meaningfully improves our cash flows to help us realize surplus more quickly.

Aric Coffman

This disciplined approach materially improves long-term margin quality, predictability, and shareholder value creation. Our Nebraska partnership, which added an additional 28,600 lives under management, reflects exactly this type of disciplined expansion strategy. The implementation remains on track, operational readiness milestones continue to progress as planned, and the partnership reinforces our ability to enter new geographies through structured, delegation-oriented growth pathways. Over time, partnerships structured in this manner will become meaningful contributors to long-term earnings growth and market expansion. These partnerships solve for one of the major issues around growth in value-based care, establishing cash flow to the business and contractual elements that are mutually beneficial for P3 and the payer partner. Overall, our first quarter was strong. We have three quarters ahead of us, and our focus remains on sustaining execution.

Aric Coffman

The results reinforce our confidence that the business has moved into a phase of improving operational consistency and earnings quality. The core economic levers that drive the business are increasingly within our control. While our work is never done, the economic framework for 2026 is solid within the business. We remain focused on executing with discipline against that opportunity. With that, I'll turn the call over to Amir to discuss our clinical performance.

Amir Bacchus

Thank you, Aric. I want to spend a few minutes on the clinical work that is driving the financial performance Leif will discuss shortly. The nearly flat MA medical cost trend that we are seeing in the quarter is not accidental. It is the result of deliberate clinical programs, improved utilization management workflows, and enhanced payment integrity capabilities. The clinical foundation driving our approach centers on our Care Enablement Model embedded within our tier 1 provider network. Execution across four areas is tracking ahead of plan.

Amir Bacchus

First, our Stars performance is tracking ahead of our internal glide path for gap closures across all markets, signaling that our quality trajectory is on track heading into the second half of the year and provides confidence in achieving our goals. Second, total members seen across all markets through quarter one is ahead of plan by approximately 5%, which directly supports burden of illness documentation and our ability to manage care for the highest complexity members. Third, our Tier 1 provider concentration continues to deepen. The share of members attributed to Tier 1 providers has increased from 56% in Q1 2025 to 62% in 2026, reflecting continued progress in aligning our network around practices with the highest level of clinical integration and accountability. These providers consistently demonstrate more effective chronic disease management and better overall cost performance.

Amir Bacchus

Lastly, our high-risk program provides intensive support for our most complex members. A core feature of the program is a dedicated 24/7 clinical call center, giving members and their caregivers direct access to clinical guidance before seeking higher cost care. This capability is designed to reduce avoidable ED visits and inpatient admissions by ensuring members have a supported lower acuity pathway when issues arise. This program was introduced in late 2025 and continues to ramp in the early part of 2026. In addition to our clinical foundation, we have strengthened our utilization management infrastructure across the network, with a focus on high-cost settings, including inpatient, post-acute care, and readmissions. The result is a more consistent, cost-effective care experience across our markets. We've also made meaningful progress on payment integrity, implementing process improvements that ensure we are paying accurately for the services our members receive.

Amir Bacchus

This is an area where operational discipline translates directly to medical margin, and the work we have done over the past several quarters is now showing up in our results. Lastly, our P3 Restore program, where we provide a three-month individualized coaching engagement to provider partners, has reached across all of our markets, with lasting impact on provider engagement and practice sustainability. With that, I'll turn the call over to Leif to walk you through our financials.

Leif Pedersen

Thank you, Amir. Good afternoon. Q1 was a strong start to the year. We delivered $26 million of adjusted EBITDA, exceeding internal expectations for the quarter. The results reflect the cumulative impact of the work Aric described, including improved payer economics, disciplined clinical execution, and strategic portfolio decisions such as smart, deliberate market growth. This afternoon, I will cover three areas. First, our financial performance for the quarter, including an update on our medical cost trends. Second, our capital position and liquidity. Third, our revised outlook for the remainder of 2026. Starting with membership, total at-risk membership at the end of Q1 was approximately 106,000, compared to 118,000 in Q1 2025. The year-over-year decline reflects the deliberate portfolio actions that we took throughout 2025, including the exit of arrangements that did not meet our economic thresholds.

Leif Pedersen

The membership base we are operating from today is more concentrated in relationships where our model performs best. In addition to our at-risk membership, we currently manage approximately 29,000 lives under management service arrangements, bringing the total lives under management to approximately 135,000. Going forward, we intend to provide total managed lives as an additional operating metric to better reflect the broader scale of our platform and the expanding scope of services we provide across our payer and provider relationships. Moving to revenue. Q1 revenue was $386 million, compared to $373 million in the same period of 2025. Despite a lower membership base, per-member funding for our Medicare Advantage population improved approximately 15% year-over-year, reflecting rate progression, contractual restructuring, and continued maturation of our burden of illness documentation across our networks.

Leif Pedersen

Medical claims expense for the quarter was $306 million. The results include approximately $17 million of favorable prior year development and payer settlements. Q1 2026 MA medical cost trend is approximately flat to the full year 2025 baseline when adjusted for the prior year items. Medical margin for the quarter was $74 million. Medical loss ratio for the quarter was 85.2% when adjusted for the favorable prior year development and payer settlement noted above. These results reflect the structural contract improvements, clinical execution, and enhanced payment integrity workflows, along with utilization management progression previously described. Adjusted operating expense for the quarter was $25 million, consistent with the cost structure we have established over the prior 18 months. We continue to direct investments towards frontline capabilities that drive medical costs and quality performance.

Leif Pedersen

Adjusted EBITDA for Q1 was $26 million, compared to a loss of $22 million in the same period of 2025. Excluding the prior year items, underlying Q1 adjusted EBITDA was $8 million, reflecting the core operating performance of the business. On the balance sheet, we ended the quarter with $25 million in cash and equivalents. Consistent with the liquidity framework we have communicated, we continue to manage capital with discipline while maintaining focus on operational execution and financial stability. Of additional note, we recently completed a series of strategic capital structure transactions designed to improve financial flexibility and address the Nasdaq minimum stockholders' equity requirement. On April 28th, approximately $250 million of debt was converted to preferred equity. While not reflected on the 3/31/2026 balance sheet, it materially improved stockholders' equity.

Leif Pedersen

Separately, we have an agreement to issue up to $70 million in additional preferred equity, $30 million of which has been issued to date. Collectively, we believe these actions bring stockholders' equity above the Nasdaq minimum compliance threshold, materially strengthening the company's financial position and enhance the long-term balance sheet flexibility. Moving to our updated 2026 outlook. We are revising our full year 2026 adjusted EBITDA outlook to a range of $20 million-$60 million, with a midpoint of $40 million. The revision reflects both the favorable prior year development and payer settlements recognized in Q1 and our confidence in the underlying operating trajectory of the business through the remainder of the year. Our confidence in the full year is rooted in the same pillars we outlined at the start of 2026.

Leif Pedersen

The structural contract improvements now flowing through our economics, continued clinical execution across cost management, quality and Stars performance, and the operating discipline we have established across the business. The width of the range reflects the normal variability in claims development and full year cost expectations. Results within the range are contingent on cost trend development throughout the year and execution against medical cost initiatives. With that, I'll turn it back to Aric for closing comments.

Aric Coffman

Thank you, Leif. Before we open the line for questions, I want to leave you with three takeaways from this quarter. First, the structural work is producing results. The contract restructuring, network concentration, and operational redesign we have executed over the past two years are showing up in our economics. Additional structural work remains a priority in 2026, and we are executing against it. Second, our clinical model, utilization management, and payment integrity processes are differentiators. At a time when the industry is broadly guiding to 7% or higher medical cost trend, P3 delivered flat trend in the quarter following a sub 2% trend in 2025. That outcome is driven by the clinical and operational infrastructure Amir described. We expect it to remain a point of differentiation as we move forward. Third, the setup for the remainder of 2026 is strong.

Aric Coffman

We are raising our full year outlook, our operating fundamentals continue to mature, and the predictability of our performance has improved. We have plenty of work ahead, but we are executing with confidence. With that, operator, please open the line for questions.

Operator

Thank you. We will now begin the question and answer session. To ask a question, you press star and then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then two. At this time, we will pause momentarily to assemble our roster. We have our first question from the line of Ryan Langston from TD Cowen. Please go ahead.

Ryan Langston

Hey, thanks. On the utilization point, can you maybe just talk about what you saw in the first quarter in terms of A and B versus Part D? I guess, is it still logical to expect that Part D MLRs are gonna trend higher as we move through the year, just as members hit their out-of-pocket maximums?

Aric Coffman

Hey, Ryan, thanks for the question. This is Aric. I'll have Leif give a little more detail. One thing I want to remind on that Part D part is we've significantly reduced our Part D exposure and are continuing to reduce our Part D exposure in all of our contracts beyond 2026. We'll still I think Leif is looking for an answer here for you.

Ryan Langston

Okay. Oh, hey, Leif.

Leif Pedersen

Hey, how's it going? Thanks for the question. Appreciate it. On kind of the MedEx trend side of things, we actually saw a bigger reduction across Part B in our book of business collectively when we look at in-year 2025 versus in-year 2026, where Part A was predominantly flat.

Ryan Langston

Okay. Can you break out, I think it was around $18 million of positive PYD and payer settlement. Are you able to tell us what each of those were? In terms of the positive PYD, good to see, was anything reestablished back in reserves above and beyond what the amount was that was included in the results for 1Q? Thanks.

Leif Pedersen

Hey, Ryan. I didn't catch the last half of that, but let me answer the first half of the question. The first half of the question is that split between those two items is about 65, 35, meaning, 65% of that $17 million is related to favorable prior year development of our reserves, and about 35% relates to some payer settlements.

Ryan Langston

Okay. The second part was, Did you reestablish any positive PYD back into reserves or did that all flow through into the results for the first quarter?

Leif Pedersen

What we disclosed is what flowed through the period in the quarter, and we stayed consistent with our reserve methodology. We did not reduce any of our pads or our estimates from an IBNR process perspective.

Ryan Langston

Okay. Got it. Thank you very much.

Operator

Thank you. We have our next question on the line of Brooks O'Neil from Lake Street Capital. Please go ahead.

Brooks O'Neil

Good afternoon, gentlemen. Thanks for taking the questions. Congrats on the quarter. First off, for me, just thinking about potential payer partners, expansion with existing ones, do you think that, to what extent do you think that they take notice of, you know, kind of the results for the quarter just reported, the conversion to preferred stock and kind of see, you know, a much more financially sound partner? Does that benefit you guys? To what degree might that benefit you guys?

Aric Coffman

Hey, Ben. Thanks for being on. Appreciate the question. Yeah, I think, you know, our ability to demonstrate positive momentum, and an improved balance sheet, it does help, you know, prospects as you think about growth, to have a healthy balance sheet. It also supports part of our strategy as we move forward in expanding delegation. You know, that one is so important, not just for the data side of it, but for claims delegation, it also speeds up the timing that you have to get the dollars that you've impacted in the business as well as improves cash flow in the business obviously as well.

Brooks O'Neil

Makes sense. Then, you know, just the, you mentioned the delegation. I guess what's kind of the pathway? I know you have the set pathway and the newer managed services contract. Otherwise, what's kind of the pathway to get that beyond 63%?

Aric Coffman

Yeah, Ben, good question. The standout market, we have one particular geography in which our current delegation is very limited. We've approached that contractually with those payers. We have a glide path to get to delegation with each one of those payers based on the internal timetables that they have. That's not something that we'll just flip on. Each one of these needs things like a pre-delegation audit, and then there's, you know, testing that has to happen, and then you move into a full delegation. I expect that to be stairstepped over the next, you know, probably two years, to be honest.

Brooks O'Neil

Okay. That's helpful. That's all I had, gentlemen. Congrats again on the quarter. That was very nice.

Aric Coffman

Thanks so much, Ben. Appreciate it. Thank you.

Operator

Thank you. This concludes our question answer session. I would like to turn the conference back over to Aric Coffman for any closing remarks.

Aric Coffman

Thank you so much. Appreciate everyone joining, and thanks for listening to our first quarter results.

Operator

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

As of 2026-08-22 • Updated weeklySource: Earnings sourceIngestion runbook