Core Viewpoint - Kuehn Law, PLLC is investigating potential breaches of fiduciary duties by officers and directors of P3 Health Partners Inc. related to self-dealing, which may entitle shareholders to damages and corporate governance reforms [1]. Group 1 - The investigation focuses on whether certain officers and directors of P3 Health Partners Inc. have engaged in self-dealing that could harm shareholder interests [1]. - Shareholders are encouraged to contact Kuehn Law for a free consultation regarding their rights and potential claims [2]. - The firm emphasizes the importance of shareholder participation in maintaining the integrity and fairness of financial markets [3].

Financial Data and Key Metrics Changes - The third quarter top line performance included capitated revenue of $357.7 million and total revenue of $362.1 million, representing a 26% year-over-year growth driven by a 22% increase in member base to over 128,900 members and a 6% rise in funding year-over-year [35][36] - The medical margin was $540,000 or $1 on a PMPM basis, while adjusted EBITDA loss for the quarter was $71 million or $184 on a PMPM basis, impacted by $5 million to $10 million in elevated medical claims costs and $35 million in retroactive adjustments [36][39] - Cash flow from operations for the quarter was approximately negative $20 million, with the company ending Q3 with about $63 million in cash [41][56] Business Line Data and Key Metrics Changes - The company experienced elevated medical utilization primarily in Part B medical claims, with negative prior period development contributing about $10 million additional expense during the quarter [39][46] - High-cost claims greater than $50,000 rose 23% year-over-year, with Part B oncological medications leading the increase [48] Market Data and Key Metrics Changes - The Medicare Advantage repricing cycle and benefit design changes are expected to serve as catalysts for profitability in 2025, with anticipated recalibration of CMS benchmarks reflecting ongoing elevated utilization [16][17] - The company noted that many health plan partners are targeting margin recapture, expecting plan benefits to be less robust in 2025, which should lead to decreased utilization [17][30] Company Strategy and Development Direction - The company is executing on a plan involving over $130 million in initiatives aimed at positively impacting EBITDA and cash flow, with benefits expected to begin in Q4 and more prominently in 2025 [9][14] - Key areas of focus include enhancing payer and provider networks, improving operational discipline, increasing operating efficiency, and advancing data and analytics capabilities [15][43] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2024 but expressed optimism about the future, emphasizing the importance of value-based care in controlling medical costs and preserving margins [53][30] - The leadership team is focused on setting reliable targets that reflect the current market landscape while providing opportunities for outperformance [42] Other Important Information - The company has trimmed 63 provider tax ID numbers and reduced its payer network by 20% to enhance profitability and simplify operations [23][22] - A partnership with Innovaccer is on track for full implementation in 2025, aimed at improving data visibility and supporting decision-making [26][27] Q&A Session Summary Question: How does the company see its capital availability to execute initiatives? - The company ended the quarter with $63 million in cash, supporting core operations and strategic growth initiatives, while actively monitoring cash burn and focusing on optimizing working capital [57] Question: Is the company pursuing additional capital raise in the fourth quarter? - Currently, the company is not pursuing an immediate capital raise and is evaluating its overall cash position [60] Question: Will 2025 revenues be down due to risk exposure reduction? - There will be a slight reduction in membership associated with revenue reduction due to payer and provider rationalization, but increases from operational improvements are expected to offset this [62][64] Question: Can the company provide specifics on chronic disease improvement opportunities? - The company is focusing on operational efficiency by providing more support to high-value providers and enhancing coding and documentation practices [66][70] Question: Why was there a spike in the medical cost ratio (MCR) this quarter? - The spike was attributed to delayed information from plans, particularly in non-delegated plans, leading to unexpected cost escalations [72][74] Question: Will the MCR remain elevated in Q4 and will there be a sudden step down in Q1 2025? - The company expects immediate effects from benefit design changes starting in January, but specifics on the magnitude of impact will be clearer after open enrollment [75][76] Question: Can the company elaborate on enhancing payer and provider contracts? - The company is looking to change its position in Part D across most contracts and has exited subscale contracts that were not strong performers [78][81] Question: Is the company considering exiting certain markets entirely? - The company plans to exit the Florida market due to its small size and lack of investment potential [83]

Core Insights - P3 Health Partners Inc. reported a quarterly loss of $0.31 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.03, marking an earnings surprise of -933.33% [1] - The company's revenues for the quarter ended September 2024 were $362.12 million, missing the Zacks Consensus Estimate by 1.76%, but showing an increase from $288.35 million year-over-year [2] - P3 Health Partners shares have declined approximately 71.9% year-to-date, contrasting with the S&P 500's gain of 25.8% [3] Financial Performance - Over the last four quarters, P3 Health Partners has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $391.1 million, and for the current fiscal year, it is -$0.23 on revenues of $1.54 billion [7] Market Outlook - The earnings outlook for P3 Health Partners is mixed, with the stock currently holding a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] - The Medical Info Systems industry, to which P3 Health Partners belongs, is currently ranked in the top 19% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Financial Performance - Total operating revenue for Q3 2024 was $362.1 million, a 25.6% increase from $288.4 million in Q3 2023[32] - Capitated revenue reached $357.7 million in Q3 2024, up 25.4% from $285.2 million in the same quarter last year[32] - Operating loss for Q3 2024 was $107.0 million, compared to a loss of $33.8 million in Q3 2023, reflecting a significant increase in operating expenses[32] - Total operating expenses for Q3 2024 were $469.1 million, a 45.6% increase from $322.2 million in Q3 2023[32] - Net loss attributable to controlling interest for Q3 2024 was $46.5 million, compared to a loss of $13.3 million in Q3 2023[32] - For the nine months ended September 30, 2024, the company reported a net loss of $181.2 million, compared to a net loss of $117.3 million for the same period in 2023, reflecting an increase in losses of approximately 54.5%[43] - The company reported a comprehensive loss that was consistent with its net loss, indicating no significant changes in equity from transactions other than those with stockholders[50] - The company reported net losses of $102.9 million and $181.2 million for the three and nine months ended September 30, 2024, respectively[170] Cash and Liquidity - Cash and cash equivalents increased to $62.9 million as of September 30, 2024, up from $36.3 million at the end of 2023[29] - The company had $63.0 million in unrestricted cash and cash equivalents as of September 30, 2024, compared to $36.3 million at the end of 2023, showing improved liquidity[44] - As of September 30, 2024, the company had cash and restricted cash of $68.1 million, including a $15 million refundable good faith deposit for the sale of its Florida operations[169] - Cash at the end of the period was $68.1 million, an increase from $57.4 million at the end of the same period in 2023[199] Assets and Liabilities - Total current assets rose to $215.1 million as of September 30, 2024, compared to $166.0 million at the end of 2023[29] - Total liabilities increased to $569.4 million as of September 30, 2024, up from $427.3 million at the end of 2023[30] - The company reported a premium deficiency reserve of $29.4 million as of September 30, 2024, compared to $13.7 million at the end of 2023[30] - Long-term debt as of September 30, 2024, was $134.5 million, an increase from $109.1 million as of December 31, 2023[72] Revenue Composition - Capitated revenue accounted for 98.8% of total revenue in Q3 2024, slightly down from 98.9% in Q3 2023, indicating stable revenue composition[54] - Capitated revenue for the nine months ended September 30, 2024, was $1,116.1 million, an increase of $206.7 million, or 23%, compared to $909.5 million for the same period in 2023[163] - Total revenue for the nine months ended September 30, 2024, was $1,129.8 million, a 23% increase from $919.5 million in the prior year[163] Membership and Growth - At-risk membership increased to 128,900 members as of September 30, 2024, compared to 105,600 members in the same period of 2023, reflecting a growth of 22%[136] - The number of affiliate primary care physicians rose to 3,100 as of September 30, 2024, up from 2,700 in the same period of 2023, marking an increase of 14.8%[137] - The company experiences the largest portion of at-risk member growth during the first quarter due to new contracts with payors starting on January 1[118] Medical Expenses - Medical expenses for the three months ended September 30, 2024, were $401.9 million, up $122.7 million, or 44%, from $279.2 million in the same period last year[159] - Medical expenses rose by $282.1 million, or 33%, to $1,149.1 million for the nine months ended September 30, 2024, compared to $867.1 million for the same period in 2023[164] - Medical claims expenses for Q3 2024 totaled $357,166 thousand, compared to $248,918 thousand in Q3 2023, an increase of 43.5%[130] Internal Controls and Compliance - Material weaknesses in internal control over financial reporting were identified, impacting the reliability of financial statements[208] - The company has identified material weaknesses in internal control over financial reporting, including inadequate policies and insufficient qualified resources[207] - The company is actively engaged in a comprehensive remediation plan, having completed the design phase and enhanced existing controls[209] - There were no changes in internal control over financial reporting during the quarter ended September 30, 2024, that materially affected the internal control[212] Legal and Regulatory Matters - A Confidential Settlement and Mutual Release Agreement was executed on August 22, 2024, resolving legal disputes related to business combinations[217] - The company maintains general and professional liability insurance to mitigate risks associated with legal proceedings[214] - The company believes that the disposition of ongoing legal matters will not have a material adverse effect on its consolidated financial position[214]

Financial Performance - Total revenue for Q3 2024 was $362.1 million, a 26% increase from $288.4 million in Q3 2023[3] - Capitated revenue reached $357.7 million, up 25% compared to $285.2 million in the same quarter last year[3] - Gross profit was a loss of $39.8 million, compared to a profit of $9.1 million in the prior year[3] - Net loss for the quarter was $102.9 million, worsening from a net loss of $37.3 million in Q3 2023[3] - Adjusted EBITDA loss was $71.0 million, compared to a loss of $22.3 million in the prior year[3] - Medical margin was $0.5 million, significantly down from $36.2 million in the prior year[3] - Total operating revenue for the three months ended September 30, 2024, was $362,124, a 25.6% increase from $288,351 in the same period of 2023[15] - Medical expenses for the three months ended September 30, 2024, were $401,920, up 43.8% from $279,220 in the prior year[15] - The net loss attributable to controlling interest for the three months ended September 30, 2024, was $46,512, compared to a net loss of $13,296 in the same period of 2023[15] - Adjusted EBITDA loss for the three months ended September 30, 2024, was $(71,000), compared to $(22,332) in the same period of 2023[17] - Capitated revenue for Q3 2024 reached $357,706 thousand, up from $285,153 thousand in Q3 2023, representing a 25.4% increase[18] - Medical claims expense for Q3 2024 was $357,166 thousand, compared to $248,918 thousand in Q3 2023, reflecting a 43.4% increase[18] - Medical margin for Q3 2024 decreased to $540 thousand from $36,235 thousand in Q3 2023, indicating a significant decline[18] - Total operating expense for Q3 2024 was $469,114 thousand, compared to $322,171 thousand in Q3 2023, marking a 45.6% increase[20] - Nine months ended September 30, 2024, capitated revenue totaled $1,116,146 thousand, compared to $909,473 thousand for the same period in 2023, a 22.8% increase[18] - Nine months ended September 30, 2024, medical margin was $78,181 thousand, down from $125,976 thousand in the same period of 2023[18] Cash and Liabilities - Cash and cash equivalents increased to $62.96 million as of September 30, 2024, up from $36.32 million at the end of 2023[12] - Total current liabilities increased to $405,318 as of September 30, 2024, from $299,372 in the previous year[13] - Long-term debt, net, rose to $133,228 as of September 30, 2024, compared to $108,319 in the prior year[13] - Cash and restricted cash at the end of the period was $68,098, an increase from $57,440 at the end of September 2023[16] - The company reported a net cash used in operating activities of $(52,890) for the nine months ended September 30, 2024, compared to $(60,150) in the prior year[16] Operational Insights - The company has identified over $130 million in potential improvement opportunities for future growth[2] - P3 Health Partners is withdrawing its previous guidance for fiscal year 2024 due to lower-than-expected risk adjustments and elevated medical cost pressures[3] - The company operates with a network of over 3,100 affiliated primary care providers across five states[5] - The weighted average common shares outstanding for the three months ended September 30, 2024, was 161,890, up from 114,198 in the same period of 2023[14] - Adjusted operating expense for Q3 2024 was $31,552 thousand, slightly up from $31,461 thousand in Q3 2023[20] - Other medical expense for Q3 2024 was $44,754 thousand, up from $30,302 thousand in Q3 2023[19] - Medical margin PMPM (per member per month) for Q3 2024 was $1, down from $115 in Q3 2023[18] - Gross profit (loss) for Q3 2024 was $(39,796) thousand, compared to $9,131 thousand in Q3 2023, indicating a negative shift[19]

Group 1 - The stock price of P3 Health Partners Inc. (PIII) has experienced a bearish trend, losing 14.2% over the past two weeks, but a hammer chart pattern suggests a potential trend reversal as buying interest may be increasing [1] - The hammer chart pattern indicates a possible bottoming out of the stock price, with reduced selling pressure, signaling that bulls may be gaining control [2] - There has been a significant upward trend in earnings estimate revisions for PIII, with a 17.9% increase in the consensus EPS estimate over the last 30 days, indicating improved earnings expectations from analysts [3] Group 2 - PIII holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [3] - The Zacks Rank serves as a timing indicator, suggesting that the company's prospects are beginning to improve, further supporting the case for a potential trend reversal [3]

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, inves ...

Company Performance - P3 Health Partners Inc. reported a quarterly loss of $0.15 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.08, and compared to a loss of $0.09 per share a year ago, indicating an earnings surprise of -87.50% [1] - The company posted revenues of $379.16 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 4.02%, and showing an increase from year-ago revenues of $329.09 million [2] - Over the last four quarters, P3 Health Partners has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - P3 Health Partners shares have declined approximately 57% since the beginning of the year, contrasting with the S&P 500's gain of 9.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $368.5 million, and for the current fiscal year, it is -$0.28 on revenues of $1.53 billion [7] Industry Outlook - The Medical Info Systems industry, to which P3 Health Partners belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - The outlook for the industry can significantly impact the performance of P3 Health Partners' stock, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

P3 Health Partners (NASDAQ:PIII) stock is falling on Tuesday after the company sold shares and warrants to institutional investors in a recent offering. P3 Health Partners reveals in a filing with the Securities and Exchange Commission (SEC) that it issued roughly 67.4 million shares of PIII stock to institutional investors. These were sold at a price of $0.6270 each. Investors will note that each of these shares also comes with one warrant to purchase another share of PIII stock. These warrants have an exe ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40033 P3 Health Partners Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or orga ...