Press Release: P3 Health Partners Announces Fourth Quarter and Full Year 2025 Results

Dow Jones03-27

Providing 2026 Guidance, Indicating a $10 Million Adjusted EBITDA Midpoint

Management to Host Conference Call and Webcast March 26, 2026 at 4:30 PM ET

HENDERSON, Nev.--(BUSINESS WIRE)--March 26, 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 fourth quarter and full year ended December 31, 2025, and provided 2026 guidance.

"2025 was a year of meaningful progress in repositioning the business. We strengthened our contract economics, improved provider alignment, and built a more disciplined operating foundation. With that work in place, we enter 2026 with a clear path to profitability and approximately $170 million of expected year-over-year EBITDA improvement at the midpoint of our guidance range," said Aric Coffman, CEO of P3. "Additionally, our new Medicare Advantage geography reflects our approach to smart growth with a deliberate glidepath toward full risk that we believe will strengthen the long-term earnings power of the platform."

Fourth Quarter 2025 Financial Results

   --  At-risk membership was approximately 115,000, a decrease of 
      approximately 9% compared to the same quarter prior year. 
 
   --  Total revenue was $384.8 million compared to $370.7 million in the 
      prior year quarter; capitated revenue PMPM improved 9% year-over-year to 
      $1,060. 
 
   --  Medical margin(1) was negative $28.7 million or negative $83 PMPM, 
      compared to $7.3 million, $19 PMPM in the prior year quarter. 
 
   --  Net loss was $165.7 million compared to a net loss of $129.1 million in 
      the fourth quarter of the prior year. 
 
   --  Adjusted EBITDA loss(1) was $76.1 million compared to an Adjusted 
      EBITDA loss(1) of $67.6 million in the same quarter prior year. 

Full-Year 2025 Financial Results

   --  At-risk membership was approximately 116,000, a decrease of 
      approximately 8% compared to approximately 126,000 in the prior year, 
      driven by intentional network alignment. 
 
   --  Total revenue was $1.46 billion compared to $1.50 billion in the prior 
      year; capitated revenue PMPM improved 5% year-over-year to $1,026. 
 
   --  Medical margin(1) was $23.5 million, or $17 PMPM(1); on a normalized 
      basis, medical margin was $53.4 million, or $38 PMPM, compared to $51.5 
      million or $34 PMPM, in the prior year. 
 
   --  Net loss was $323.1 million compared to a net loss of $310.4 million in 
      the prior year. 
 
   --  Adjusted EBITDA loss(1) was $161.3 million compared to an Adjusted 
      EBITDA loss(1) of $167.2 million in the prior year; on a normalized basis, 
      Adjusted EBITDA loss was $149.1 million compared to $193.0 million in 
      2024, a $43.9 million year-over-year improvement. 

2026 Guidance

   --  Adjusted EBITDA expected in the range of negative $20 million to 
      positive $40 million, with the midpoint of $10 million, representing 
      approximately $170 million in year-over-year improvement. 
 
                                       Year Ending December 31, 2026 
                                      ------------------------------- 
                                            Low             High 
                                      ---------------  -------------- 
At-risk Members(2)                        107,000         117,000 
Total Revenues (in millions)              $1,500           $1,700 
Medical Margin(1)(3) (in millions)         $160             $200 
Medical Margin(3) PMPM                     $120             $150 
Adjusted EBITDA(3) (in millions)           $(20)            $40 
 
 
(1)   Adjusted EBITDA, Adjusted EBITDA per member, per month ("PMPM"), 
      Normalized Adjusted EBITDA, Normalized Adjusted EBITDA 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 March 26, 2026 at 4:30 PM ET

 
 Title & Webcast           P3 Health Fourth Quarter and Full Year 2025 
                           Earnings Conference Call 
------------------------  ---------------------------------------------------- 
 Date & Time               March 26, 2026, 4:30pm Eastern Time 
------------------------  ---------------------------------------------------- 
 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 
------------------------  ---------------------------------------------------- 
 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 at ir.p3hp.org website in advance of the 
 conference call. An archived recording of the webcast will be available at 
 ir.p3hp.org for a period of 90 days following the conference call. 
------------------------------------------------------------------------------ 
 

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 2,400 affiliated primary care providers across the country. Our local teams of health care professionals manage the care of thousands of patients in 23 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 www.p3hp.org and follow us on on LinkedIn and Facebook.

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, Normalized Adjusted EBITDA and Normalized Adjusted EBITDA PMPM, medical margin, and medical margin PMPM. 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. Normalized Adjusted EBITDA is defined as Adjusted EBITDA, further adjusted to exclude revenue adjustments related to prior year developments, claims expenses related to prior year dates of service, and other network expenses attributable to prior years. Normalized Adjusted EBITDA PMPM is defined as Normalized 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. 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 and Normalized Adjusted EBITDA to net income (loss) and Adjusted EBITDA PMPM to net income (loss) PMPM, medical margin to gross profit, and medical margin PMPM to gross profit PMPM, 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, 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, 2024, filed with the SEC on March 28, 2025, the soon-to-be-filed Annual Report on Form 10-K for the year ended December 31, 2025, 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.

 
 
                 P3 HEALTH PARTNERS INC. and SUBSIDIARIES 
                       CONSOLIDATED BALANCE SHEETS 
                 (in thousands, except per share amounts) 
                                (unaudited) 
 
                                 December 31, 2025     December 31, 2024 
                                -------------------  --------------------- 
ASSETS 
CURRENT ASSETS: 
   Cash                          $          25,012    $          38,816 
   Restricted cash                             795                5,286 
   Health plan receivable, net 
    of allowance for credit 
    losses of $281 and $150 as 
    of December 31, 2025 and 
    2024, respectively                      92,458              121,266 
   Clinic fees, insurance and 
    other receivables                        3,379                3,947 
   Prepaid expenses and other 
    current assets                          11,439               14,422 
   Assets held for sale                         --                  403 
                                    --------------       -------------- 
TOTAL CURRENT ASSETS                       133,083              184,140 
Property and equipment, net                  3,374                5,734 
Intangible assets, net                     492,423              574,350 
Other long-term assets                      27,761               19,196 
                                    --------------       -------------- 
TOTAL ASSETS (1)                 $         656,641    $         783,420 
                                    ==============       ============== 
LIABILITIES, MEZZANINE EQUITY, 
AND STOCKHOLDERS' (DEFICIT) 
EQUITY 
------------------------------ 
CURRENT LIABILITIES: 
   Accounts payable              $          11,715    $           8,442 
   Accrued expenses and other 
    current liabilities                     42,391               29,416 
   Accrued payroll                           1,950                2,722 
   Health plan settlements 
    payable                                 69,830               55,565 
   Claims payable                          287,790              255,089 
   Premium deficiency reserve               86,116               67,368 
   Accrued interest                            429                2,305 
   Current portion of 
    long-term debt                          45,036               75,155 
   Liabilities held for sale                    --                  353 
                                    --------------       -------------- 
TOTAL CURRENT LIABILITIES                  545,257              496,415 
Operating lease liability                   11,475               11,339 
Warrant liabilities                          2,462               10,312 
Long-term debt, net                        228,374              108,907 
Other Long-Term Liabilities                  9,308                6,918 
                                    --------------       -------------- 
TOTAL LIABILITIES (1)                      796,876              633,891 
                                    --------------       -------------- 
COMMITMENTS AND CONTINGENCIES 
(Note 14) 
MEZZANINE EQUITY: 
   Redeemable non-controlling 
    interest                                14,997               73,593 
STOCKHOLDERS' (DEFICIT) 
EQUITY: 
   Class A common stock, 
   $0.0001 par value; 800,000 
   shares authorized; 3,286 
   and 3,257 shares issued and 
   outstanding as of December 
   31, 2025 and 2024, 
   respectively                                 --                   -- 
   Class V common stock, 
   $0.0001 par value; 205,000 
   shares authorized; 3,919 
   and 3,919 shares issued and 
   outstanding as of December 
   31, 2025 and 2024, 
   respectively                                 --                   -- 
   Additional paid in capital              495,909              579,129 
   Accumulated deficit                    (651,141)            (503,193) 
                                    --------------       -------------- 
TOTAL STOCKHOLDERS' (DEFICIT) 
 EQUITY                                   (155,232)              75,936 
                                    --------------       -------------- 
TOTAL LIABILITIES, MEZZANINE 
 EQUITY, AND STOCKHOLDERS' 
 (DEFICIT) EQUITY                $         656,641    $         783,420 
                                    ==============       ============== 
 
 
____________________ 
(1)   The Company's consolidated balance sheets include the assets and 
      liabilities of its consolidated variable interest entities ("VIEs"). As 
      discussed in Note 21 "Variable Interest Entities," P3 LLC is itself a 
      VIE. P3 LLC represents substantially all the assets and liabilities of 
      the Company. As a result, the language and amounts below refer only to 
      VIEs held at the P3 LLC level. The consolidated balance sheets include 
      total assets that can be used only to settle obligations of P3 LLC's 
      consolidated VIEs totaling $8.2 million and $9.3 million as of December 
      31, 2025 and 2024, respectively, and total liabilities of P3 LLC's 
      consolidated VIEs for which creditors do not have recourse to the 
      general credit of the Company totaled $6.6 million and $14.9 million as 
      of December 31, 2025 and 2024, respectively. These VIE assets and 
      liabilities do not include $46.8 million and $40.3 million of net 
      amounts due to affiliates as of December 31, 2025 and 2024, 
      respectively, as these are eliminated in consolidation and not presented 
      within the consolidated balance sheets. 
 
All periods presented have been retroactively adjusted to reflect the 1-for-50 
reverse stock split effected on April 11, 2025. 
 
 
 
               P3 HEALTH PARTNERS INC. and SUBSIDIARIES 
                CONSOLIDATED STATEMENTS OF OPERATIONS 
               (in thousands, except per share amounts) 
                              (unaudited) 
 
                      Three Months Ended            Year Ended 
                         December 31,              December 31, 
                    ----------------------  -------------------------- 
                       2025        2024        2025         2024 
OPERATING REVENUE: 
   Capitated 
    revenue         $ 366,183   $ 367,456   $1,428,979   $1,483,602 
   Other revenue       18,631       3,230       30,101       16,853 
                     --------    --------    ---------    --------- 
TOTAL OPERATING 
 REVENUE              384,814     370,686    1,459,080    1,500,455 
                     --------    --------    ---------    --------- 
OPERATING EXPENSE: 
   Medical expense    426,058     410,224    1,519,240    1,559,372 
   Premium 
    deficiency 
    reserve            55,414      37,927       18,749       53,698 
   Corporate, 
    general and 
    administrative 
    expense            35,878      31,366      106,311      112,596 
   Sales and 
    marketing 
    expense               335         461          918        1,331 
   Depreciation 
    and 
    amortization       20,995      21,153       84,163       86,058 
   Impairment of 
    Assets Held 
    for Sale               --       8,058           --        8,058 
                     --------    --------    ---------    --------- 
TOTAL OPERATING 
 EXPENSE              538,680     509,189    1,729,381    1,821,113 
                     --------    --------    ---------    --------- 
OPERATING LOSS       (153,866)   (138,503)    (270,301)    (320,658) 
OTHER INCOME 
(EXPENSE): 
   Interest 
    expense, net      (15,637)     (6,834)     (55,034)     (22,173) 
   Mark-to-market 
    of stock 
    warrants            5,066       7,488        7,850       22,114 
   Other               (2,155)        384       (3,414)       1,457 
   Gain on asset 
    sale, net            (162)     13,269         (162)      13,269 
                     --------    --------    ---------    --------- 
   TOTAL OTHER 
    (EXPENSE) 
    INCOME            (12,888)     14,307      (50,760)      14,667 
                     --------    --------    ---------    --------- 
LOSS BEFORE INCOME 
 TAXES               (166,754)   (124,196)    (321,061)    (305,991) 
PROVISION FOR 
 INCOME TAXES           1,040      (4,952)      (2,025)      (4,387) 
                     --------    --------    ---------    --------- 
NET LOSS             (165,714)   (129,148)    (323,086)    (310,378) 
LESS: NET LOSS 
 ATTRIBUTABLE TO 
 REDEEMABLE 
 NON-CONTROLLING 
 INTEREST             (90,195)    (70,531)    (175,138)    (174,529) 
                     --------    --------    ---------    --------- 
NET LOSS 
 ATTRIBUTABLE TO 
 CONTROLLING 
 INTEREST           $ (75,519)  $ (58,617)  $ (147,948)  $ (135,849) 
                     ========    ========    =========    ========= 
 
NET LOSS PER SHARE 
(Note 17): 
   Basic               (23.02)     (18.02)      (45.26)      (46.78) 
   Diluted             (23.02)     (18.02)      (45.26)      (54.06) 
 
WEIGHTED AVERAGE 
COMMON SHARES 
OUTSTANDING (Note 
17): 
   Basic                3,281       3,253        3,269        2,904 
   Diluted              7,200       3,253        3,269        2,940 
 
All periods presented have been retroactively adjusted to reflect the 
1-for-50 reverse stock split effected on April 11, 2025. 
 
 
 
               P3 HEALTH PARTNERS INC. and SUBSIDIARIES 
                CONSOLIDATED STATEMENTS OF CASH FLOWS 
                            (in thousands) 
                              (unaudited) 
 
                                                     Year Ended 
                                                    December 31, 
                                              ------------------------ 
                                                 2025        2024 
                                               --------    -------- 
CASH FLOWS FROM OPERATING ACTIVITIES: 
-------------------------------------------- 
Net loss                                      $(323,086)  $(310,378) 
Adjustments to reconcile net loss to net 
cash used in operating activities: 
   Depreciation and amortization                 84,163      86,058 
   Paid in-kind interest expense                 29,718       7,895 
   Premium deficiency reserve                    18,749      53,698 
   Amortization of original issue discount 
    and debt issuance costs                      13,556          87 
   Mark-to-market adjustment of stock 
    warrants                                     (7,850)    (22,114) 
   Equity-based compensation                      5,581       5,752 
   Provision for bad debts                        2,996          -- 
   Loss (gain) on asset sale                        162     (13,269) 
   Impairment of assets held for sale                --       8,058 
   Gain on write off of contingent 
    consideration                                    --      (4,907) 
   Deferred income taxes                          2,868      (1,090) 
   Changes in operating assets and 
   liabilities: 
      Health plan receivable                     28,677      (2,769) 
      Clinic fees, insurance, and other 
       receivable                                (2,297)       (990) 
      Prepaid expenses and other current 
       assets                                     2,983     (10,834) 
      Other long-term assets                     (3,525)        (43) 
      Accounts payable, accrued expenses, 
       and other current liabilities             11,108      (8,101) 
      Accrued payroll                              (772)       (784) 
      Health plan settlements payable            14,265      20,573 
      Claims payable                             32,701      77,080 
      Accrued interest                           (1,876)         -- 
      Other long-term liabilities                    --       5,897 
      Operating lease liability                     641          53 
                                               --------    -------- 
Net cash used in operating activities           (91,238)   (110,128) 
CASH FLOWS FROM INVESTING ACTIVITIES: 
-------------------------------------------- 
   Purchases of property and equipment               79          -- 
   Proceeds from asset sale                          50      14,525 
                                               --------    -------- 
Net cash provided by investing activities           129      14,525 
CASH FLOWS FROM FINANCING ACTIVITIES: 
-------------------------------------------- 
   Proceeds from long-term debt, net of 
    original issue discount                      73,000      88,057 
   Payment of debt issuance costs                  (186)       (103) 
   Proceeds from liability-classified 
    warrants and private placement offering, 
    net of offering costs paid                       --      40,496 
   Proceeds from at-the-market sales, net of 
    offering costs paid                              --          33 
   Deferred offering costs paid                      --        (507) 
   Payment of tax withholdings upon 
    settlement of restricted stock unit 
    awards                                           --        (103) 
   Repayment of short-term and long-term 
    debt                                         (1,137)    (30,973) 
   Proceeds from short-term debt                  1,137       1,871 
                                               --------    -------- 
Net cash provided by financing activities        72,814      98,771 
                                               --------    -------- 
Net change in cash and restricted cash          (18,295)      3,168 
Cash and restricted cash, beginning of year      44,102      40,934 
                                               --------    -------- 
Cash and restricted cash, end of year         $  25,807   $  44,102 
                                               ========    ======== 
 
 
 
       RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA LOSS 
                   (in thousands, except PMPM) 
                           (unaudited) 
 
                   Three Months Ended           Year Ended 
                      December 31,             December 31, 
                 ----------------------  ------------------------ 
                    2025        2024        2025        2024 
                  --------    --------    --------    -------- 
Net loss         $(165,714)  $(129,148)  $(323,086)  $(310,378) 
Interest 
 expense, net       15,637       6,834      55,034      22,173 
Depreciation 
 and 
 amortization       20,995      21,153      84,163      86,058 
Income tax 
 provision 
 (benefit)          (1,040)      4,952       2,025       4,387 
Mark-to-market 
 of stock 
 warrants           (5,066)     (7,488)     (7,850)    (22,114) 
Premium 
 deficiency 
 reserve            55,414      37,927      18,749      53,698 
Equity-based 
 compensation        1,099         721       5,581       5,752 
Other(1)             2,610      (2,533)      4,108      (6,775) 
                  --------    --------    --------    -------- 
Adjusted EBITDA 
 loss            $ (76,065)  $ (67,582)  $(161,276)  $(167,199) 
Normalization 
 adjustments(2)      1,301      (6,341)     12,207     (25,788) 
                  --------    --------    --------    -------- 
Normalized 
 adjusted 
 EBITDA          $ (74,764)  $ (73,923)  $(149,069)  $(192,987) 
                  ========    ========    ========    ======== 
 
Adjusted EBITDA 
 loss PMPM       $    (220)  $    (179)  $    (116)  $    (111) 
Normalized 
 adjusted 
 EBITDA PMPM     $    (216)  $    (195)  $    (107)  $    (128) 
 
 
____________________ 
(1)   Other during the year ended December 31, 2025 consisted of (i) interest 
      income, (ii) loss on disposal of certain property and equipment, (iii) 
      severance expense in connection with reorganization of workforce and 
      (iv) legal settlements and valuation allowance on our notes receivable. 
      Other during the year ended December 31, 2024 consisted of (i) interest 
      income, (ii) gain recognized upon the settlement and write-off of 
      contingent consideration related to an acquisition completed in a prior 
      year and (iii) gain recognized on asset sale partially offset by (iv) 
      severance and related expense in connection with our chief executive 
      officer transition, (v) loss on impairment on assets held for sale, and 
      (vi) valuation allowance on our notes receivable. 
(2)   Amounts represent net impact of revenue adjustments related to prior 
      year developments, claims expenses related to prior year dates of 
      service, and other network expenses attributable to prior years. 
 
 
                         MEDICAL MARGIN 
                  (in thousands, except PMPM) 
                           (unaudited) 
 
              Three Months Ended             Year Ended 
                 December 31,               December 31, 
            ----------------------  ---------------------------- 
               2025        2024         2025          2024 
             --------    --------    ----------    ---------- 
Capitated 
 revenue    $ 366,183   $ 367,456   $ 1,428,979   $ 1,483,602 
Less: 
 medical 
 claims 
 expense     (394,882)   (360,178)   (1,405,451)   (1,398,143) 
             --------    --------    ----------    ---------- 
Medical 
 margin     $ (28,699)  $   7,278   $    23,528   $    85,459 
             ========    ========    ==========    ========== 
Medical 
 margin 
 PMPM       $     (83)  $      19   $        17   $        57 
 
 
 
 RECONCILIATION OF GROSS PROFIT (LOSS) TO MEDICAL MARGIN 
                      (in thousands) 
 
               Three Months Ended         Year Ended 
                  December 31,           December 31, 
              --------------------  ---------------------- 
                2025       2024       2025       2024 
               -------    -------    -------    ------- 
Gross profit 
 (loss)       $(41,244)  $(39,538)  $(60,160)  $(58,917) 
Other 
 patient 
 service 
 revenue       (18,631)    (3,230)   (30,101)   (16,853) 
Other 
 medical 
 expense        31,176     50,046    113,789    161,229 
               -------    -------    -------    ------- 
Medical 
 margin       $(28,699)  $  7,278   $ 23,528   $ 85,459 
               =======    =======    =======    ======= 
 
 
 
  RECONCILIATION OF TOTAL OPERATING EXPENSE TO ADJUSTED OPERATING 
                EXPENSE (in thousands) (unaudited) 
 
                 Three Months Ended             Year Ended 
                    December 31,               December 31, 
               ----------------------  ---------------------------- 
                  2025        2024         2025          2024 
                --------    --------    ----------    ---------- 
Total 
 operating 
 expense       $ 538,680   $ 509,189   $ 1,729,381   $ 1,821,113 
Medical 
 expense        (426,058)   (410,224)   (1,519,240)   (1,559,372) 
Depreciation 
 and 
 amortization    (20,995)    (21,153)      (84,163)      (86,058) 
Premium 
 deficiency 
 reserve         (55,414)    (37,927)      (18,749)      (53,698) 
Equity-based 
 compensation     (1,099)       (721)       (5,581)       (5,752) 
Other                 (1)    (10,458)          130        (4,353) 
                --------    --------    ----------    ---------- 
Adjusted 
 operating 
 expense       $  35,113   $  28,706   $   101,778   $   111,880 
                ========    ========    ==========    ========== 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260326027105/en/

 
    CONTACT:    David Deuchler 

Investor Relations

Gilmartin Group

investors@p3hp.org

 
 

(END) Dow Jones Newswires

March 26, 2026 16:05 ET (20:05 GMT)

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