P3 Health Partners (PIII) Q2 2026 earnings summary

Executive summary

• Achieved $54.4 million in adjusted EBITDA and $15.7 million net income for Q2 2026, reversing prior-year losses and reflecting sustained operational execution, improved network economics, and structural improvements.

• Total revenue increased 9% year-over-year to $386.4 million, with per-member capitated revenue up 15%, despite a 10% decline in at-risk membership due to strategic network rationalization.

• Deliberate portfolio actions led to a more concentrated, higher-performing membership base, with 105,000 at-risk members and 133,000 total lives under management.

• Medical expense decreased 15% year-over-year, aided by favorable reserve development and claims true-up activity, including a $36.2 million reduction of prior period claims.

• Raised full-year 2026 adjusted EBITDA outlook to $80–$110 million, citing confidence in business fundamentals and predictability of earnings.

Financial highlights

• Q2 2026 revenue was $386.4 million, up from $355.8 million in Q2 2025, with medical margin at $97.8 million ($311 PMPM), and adjusted EBITDA at $54.4 million.

• Operating income was $41.2 million, reversing a $34.1 million loss in Q2 2025.

• Adjusted operating expense for Q2 was $31.5 million, reflecting ongoing investment in coding, documentation, and new market infrastructure.

• Ended the quarter with $22.2 million in cash and equivalents.

• Net loss attributable to Class A common stockholders was $2.1 million for Q2 2026, after deducting $9.6 million in cumulative preferred stock dividends.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance raised to $80–$110 million, with revenue expected at $1.5–$1.6 billion and medical margin guidance of $260–$300 million ($210–$240 PMPM).

• At-risk membership expected between 102,000 and 106,000 by year-end.

• Expectation of typical seasonal increase in medical expense in the second half, but offset by ongoing care management and utilization programs.

• Management expects continued improvement in medical margin as the platform matures and new member dilution lessens.

• Substantial doubt remains about the ability to continue as a going concern for the next year without additional capital.