Raises Full-Year 2026 Adjusted EBITDA Guidance
Management to Host Conference Call and Webcast May 14, 2026 at 4:30 PM ET
HENDERSON, Nev.--(BUSINESS WIRE)--May 14, 2026--
P3 Health Partners Inc. ("P3" or the "Company") $(PIII)$, 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.
Year Ending December 31, 2026
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Low High
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At-risk Members(2) 103,000 110,000
Total Revenues (in millions) $1,500 $1,650
Medical Margin(1)(3) (in millions) $190 $230
Medical Margin(1)(3) PMPM $149 $180
Adjusted EBITDA(1)(3) (in millions) $20 $60
(1) Adjusted EBITDA, Adjusted EBITDA per member, per month ("PMPM"),
medical margin, and medical margin PMPM are non-GAAP financial
measures. For reconciliations of these measures to the most directly
comparable GAAP measures, if applicable, and more information regarding
the Company's use of non-GAAP financial measures, please see the
section titled "Non-GAAP Financial Measures."
(2) See "Key Performance Metrics" for additional information on how the
Company defines "at-risk members."
(3) The Company is not able to provide a quantitative reconciliation of
guidance for Adjusted EBITDA, medical margin and medical margin PMPM to
net income (loss), gross profit and gross profit PMPM, the most
directly comparable GAAP measures, respectively, and has not provided
forward-looking guidance for net income (loss), because of the
uncertainty around certain items that may impact net income (loss),
gross profit (loss) or gross profit (loss) PMPM that are not within our
control or cannot be reasonably predicted without unreasonable effort.
For more information regarding the non-GAAP financial measures
discussed in this press release, please see "Non-GAAP Financial
Measures" below.
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
Title & Webcast P3 Health First Quarter 2026 Earnings Conference
Call
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Date & Time May 14, 2026, 4:30 PM Eastern Time
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Conference Call Details Toll-Free 1-833-316-0546 (US)
International 1-412-317-0692
Ask to be joined into the P3 Health Partners call
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The conference call will also be webcast live in the "Events & Presentations"
section of the Investor page of the P3 website (ir.p3hp.org). The Company's
press release will be available on the Investor page of P3's website in
advance of the conference call. An archived recording of the webcast will be
available on the Investor page of P3's website for a period of 90 days
following the conference call.
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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
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