P3 Health Partners (PIII) Q1 2026 earnings summary

Executive summary

• Q1 2026 marked a significant turnaround with $3.0 million net income, compared to a $44.2 million net loss in Q1 2025, driven by improved medical margin, lower medical expenses, and operational improvements.

• Adjusted EBITDA reached $26 million, reflecting operational and strategic actions, contract restructuring, and cost controls.

• Revenue increased 4% year-over-year to $386 million, despite a 10% decrease in at-risk membership due to deliberate portfolio actions.

• Focus remains on expanding medical margin, improving contract economics, and scaling in high-performing markets.

• The business is now positioned for sustainable profitability and long-term margin expansion.

Financial highlights

• Q1 2026 revenue was $386 million, up from $373 million year-over-year, with per-member revenue up 14%.

• Adjusted EBITDA for Q1 2026 was $25.8 million, a substantial improvement from a $22.2 million loss in Q1 2025.

• Medical margin for Q1 2026 was $74 million; medical loss ratio was 85.2% after adjustments.

• Gross profit improved to $50.4 million from $1.2 million in Q1 2025.

• Ended Q1 2026 with $26.1 million in cash and restricted cash.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance raised to a midpoint of $40 million, with a range of $20–$60 million.

• Full-year revenue guidance is $1.5–$1.65 billion; medical margin guidance is $149–$180 million.

• Projected at-risk membership for year-end 2026 is 103,000–110,000.

• Confidence in outlook is based on contract improvements, clinical execution, and operating discipline.

• Guidance reflects Q1 performance and prior-year settlements; actual results may differ due to various risks.