[P3 Health Partners First Quarter 2025 Financial Results](index=1&type=section&id=P3%20Health%20Partners%20Announces%20First%20Quarter%202025%20Results) [Management Commentary](index=1&type=section&id=Management%20Commentary) The CEO reports the turnaround plan is ahead of schedule, with three markets achieving breakeven, and highlights ongoing investments in technology and clinical programs - The company's turnaround plan is ahead of schedule, with **three out of four markets achieving breakeven or better in Q1**[3](index=3&type=chunk) - P3 has identified additional value creation opportunities through enhanced complex care programs and payment integrity initiatives[3](index=3&type=chunk) - The company is making targeted investments in technology infrastructure and innovative clinical programs to drive long-term value[3](index=3&type=chunk) [First Quarter 2025 Financial & Operational Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20%26%20Operational%20Highlights) Q1 2025 saw total revenue decrease by 4% to $373.2 million, medical margin fall to $17.2 million due to a $23 million adjustment, and Adjusted EBITDA loss widen to $22.2 million, alongside an 8% decline in at-risk membership Q1 2025 Key Financial and Operational Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $373.2M | $388.5M | -4% | | Medical Margin | $17.2M | $36.6M | -53% | | Adjusted EBITDA Loss | $(22.2)M | $(19.8)M | +12.1% | | Average At-Risk Membership | 115,900 | N/A | -8% (vs FY 2024 avg) | | Medical Margin PMPM | $49 | $96 | -49% | | Adjusted EBITDA Loss PMPM | $(64) | $(52) | +23.1% | - Medical margin and Adjusted EBITDA were negatively impacted by prior year claims and retroactive adjustments from a single payer, amounting to a **$23 million** and **$9 million net impact**, respectively[7](index=7&type=chunk) - The **8% decrease** in average at-risk membership compared to the full year 2024 average was a result of previously disclosed network and payer rationalization[7](index=7&type=chunk) [Fiscal 2025 Guidance](index=1&type=section&id=Fiscal%202025%20Guidance) The company affirmed its FY2025 guidance, projecting total revenues between **$1.35 billion** and **$1.50 billion**, at-risk membership between **109,000** and **119,000**, and Adjusted EBITDA ranging from a **$35 million loss** to a **$5 million profit** Fiscal Year 2025 Guidance | Metric | Low | High | | :--- | :--- | :--- | | At-risk Members | 109,000 | 119,000 | | Total Revenues (in millions) | $1,350 | $1,500 | | Medical Margin (in millions) | $174 | $210 | | Medical Margin PMPM | $133 | $147 | | Adjusted EBITDA (in millions) | $(35) | $5 | - The company is not providing a quantitative reconciliation for its forward-looking non-GAAP measures (Adjusted EBITDA, medical margin) to the most comparable GAAP measures due to uncertainty around certain items[6](index=6&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, total assets were **$783.9 million**, total liabilities increased to **$662.8 million** due to long-term debt, and total stockholders' equity decreased to **$63.3 million** Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash | $40,082 | $38,816 | | Total Current Assets | $191,435 | $184,140 | | Total Assets | $783,870 | $783,420 | | Claims payable | $268,664 | $255,089 | | Total Current Liabilities | $507,034 | $496,415 | | Total Liabilities | $662,791 | $633,891 | | Total Stockholders' Equity | $63,250 | $75,936 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q1 2025 total operating revenue decreased to **$373.2 million**, while operating loss narrowed to **$38.1 million**, and net loss improved to **$44.2 million** or **$(6.28) per share** Q1 Statement of Operations (in thousands, except per share) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total Operating Revenue | $373,225 | $388,488 | | Total Operating Expense | $411,313 | $432,319 | | Operating Loss | $(38,088) | $(43,831) | | Net Loss | $(44,246) | $(49,606) | | Net Loss Per Share (Basic & Diluted) | $(6.28) | $(7.86) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Q1 2025 saw net cash used in operating activities increase to **$33.5 million**, offset by **$30.7 million** from financing activities, resulting in a **$2.8 million** decrease in cash and restricted cash Q1 Statement of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(33,466) | $(20,030) | | Net cash provided by financing activities | $30,657 | $11,401 | | Net change in cash and restricted cash | $(2,809) | $(8,629) | | Cash and restricted cash, end of period | $41,293 | $32,305 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) [Reconciliation of Net Loss to Adjusted EBITDA Loss](index=7&type=section&id=RECONCILIATION%20OF%20NET%20LOSS%20TO%20ADJUSTED%20EBITDA%20LOSS) Q1 2025 GAAP net loss of **$44.2 million** was reconciled to a non-GAAP Adjusted EBITDA loss of **$22.2 million**, primarily by adjusting for depreciation, amortization, and net interest expense Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(44,246) | $(49,606) | | Adjustments (Depreciation, Interest, etc.) | $22,056 | $29,836 | | **Adjusted EBITDA loss** | **$(22,190)** | **$(19,770)** | [Medical Margin](index=7&type=section&id=MEDICAL%20MARGIN) Q1 2025 medical margin significantly decreased to **$17.2 million** from **$36.6 million** in Q1 2024, with medical margin PMPM falling from **$96** to **$49** Medical Margin Calculation (in thousands, except PMPM) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Capitated revenue | $369,517 | $384,134 | | Less: medical claims expense | $(352,317) | $(347,582) | | **Medical margin** | **$17,200** | **$36,552** | | **Medical margin PMPM** | **$49** | **$96** | [Reconciliation of Gross Profit (Loss) to Medical Margin](index=7&type=section&id=RECONCILIATION%20OF%20GROSS%20PROFIT%20%28LOSS%29%20TO%20MEDICAL%20MARGIN) Q1 2025 GAAP gross profit of **$1.2 million** was reconciled to a non-GAAP medical margin of **$17.2 million** by adjusting for other patient service revenue and medical expenses Gross Profit to Medical Margin Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross profit (loss) | $1,182 | $6,431 | | Adjustments | $16,018 | $30,121 | | **Medical margin** | **$17,200** | **$36,552** | [Reconciliation of Total Operating Expense to Adjusted Operating Expense](index=8&type=section&id=RECONCILIATION%20OF%20TOTAL%20OPERATING%20EXPENSE%20TO%20ADJUSTED%20OPERATING%20EXPENSE) Q1 2025 total operating expense of **$411.3 million** was reconciled to an adjusted operating expense of **$23.4 million**, excluding medical expenses and depreciation to show core corporate overhead Adjusted Operating Expense Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total operating expense | $411,313 | $432,319 | | Medical expense | $(372,043) | $(382,057) | | Depreciation and amortization | $(21,052) | $(21,539) | | Other adjustments | $5,216 | $(2,501) | | **Adjusted operating expense** | **$23,434** | **$26,222** | [Supplementary Information](index=2&type=section&id=Supplementary%20Information) [Conference Call and Webcast Information](index=2&type=section&id=Conference%20Call%20and%20Webcast%20Information) A conference call and webcast to discuss Q1 2025 financial results is scheduled for May 15, 2025, at 4:30 PM ET - A conference call and webcast to discuss Q1 2025 results is scheduled for May 15, 2025, at **4:30 PM ET**[9](index=9&type=chunk)[10](index=10&type=chunk) [About P3 Health Partners](index=2&type=section&id=About%20P3%20Health%20Partners) P3 Health Partners is a physician-led population health management company operating a network of over **2,800** affiliated primary care providers across five states, focused on value-based care - P3 is a physician-led population health management company with a network of over **2,800** affiliated primary care providers across five states[11](index=11&type=chunk) [Non-GAAP Financial Measures & Key Performance Metrics](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Key%20Performance%20Metrics) This section defines non-GAAP financial measures like Adjusted EBITDA and medical margin, along with the key performance metric 'at-risk members,' to aid in evaluating operating results - The report uses non-GAAP measures such as Adjusted EBITDA, medical margin, and adjusted operating expense to provide additional tools for investors to evaluate operating results[12](index=12&type=chunk) - The key performance metric 'at-risk members' is defined as the approximate number of Medicare members for whom the company receives a fixed percentage of premium under capitation arrangements[13](index=13&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section contains a standard safe harbor statement, indicating that forward-looking statements are subject to significant risks and uncertainties detailed in the company's SEC filings - The press release contains forward-looking statements that are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially[14](index=14&type=chunk) - Important risks are detailed in the company's Annual Report on Form 10-K and subsequent SEC filings[15](index=15&type=chunk)

Company Overview - P3 Health Partners Inc. (PIII) shares increased by 8.9% to close at $9.79, supported by high trading volume, contrasting with a 5% gain over the past four weeks [1] - The company reported fourth quarter revenue of $371 million, marking a 7% year-over-year increase, and reaffirmed its 2025 revenue guidance of $1.35 billion to $1.5 billion, with expectations of achieving profitability this year [2] Earnings Expectations - The upcoming report for P3 Health Partners is expected to show a quarterly loss of $5 per share, reflecting a year-over-year change of -3025%, with revenues anticipated at $363.75 million, down 6.4% from the previous year [3] - The consensus EPS estimate for the quarter has been revised 14.3% lower over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] Industry Context - P3 Health Partners operates within the Zacks Medical Info Systems industry, where another company, Pulmonx Corporation (LUNG), experienced a 9.1% decline in its stock price, closing at $4.92, and has returned -30.6% over the past month [4] - Pulmonx's consensus EPS estimate for the upcoming report remains unchanged at -$0.37, representing a -2.8% change from the previous year, and it currently holds a Zacks Rank of 3 (Hold) [5]

Medicare Market Overview - P3 Health Partners operates in the $1,029.8 billion Medicare market, covering approximately 68 million eligible lives as of November 2024[34]. - The Medicare Advantage (MA) market constitutes about 54% of the overall Medicare market, with nearly 33 million Medicare eligible lives in 2024[34]. - The penetration of MA plans among Medicare beneficiaries increased from 19% in 2007 to 54% in 2024, projected to reach 64% by 2034[43]. - The total addressable market for P3 is approximately 68 million Americans enrolled in traditional Medicare or MA, representing $1,030 billion of annual spend[46]. - The core addressable market for P3 is estimated to be over $300 billion, based on approximately 33 million Medicare Advantage members with an average spend of $1,000 per member per month[46]. Revenue and Financial Performance - Contracts with four health plans accounted for approximately 59% and 60% of P3's capitated revenue for the years ended December 31, 2024 and 2023, respectively[35]. - For the year ended December 31, 2024, the company incurred net losses of $310.4 million, resulting in an accumulated deficit of $503.2 million[128]. - The company expects to continue incurring operating losses and generating negative cash flows for the foreseeable future, indicating a need for additional funding in 2025[125]. - The company has issued an aggregate of 110.8 million shares of Class A common stock and warrants since December 2022, which may dilute ownership interests[132]. - The company is exploring raising additional capital through debt financing and equity issuances due to substantial doubt about its ability to continue as a going concern[126]. Operational Strategy and Growth - The company aims to expand its footprint in current markets like Arizona, California, Nevada, and Oregon, leveraging existing relationships with payors to increase membership[68]. - The company is focused on executing accretive acquisitions to grow its membership base, despite previous growth being primarily organic[71]. - The company maintains a disciplined growth strategy, periodically reviewing provider and payor contracts to exit underperforming ones and rationalize network costs[65]. - Future growth depends on the successful integration of new physician partners and expansion into new geographies, which may involve significant challenges[150]. Compliance and Regulatory Environment - The company operates under extensive regulatory requirements, including obtaining necessary licenses and maintaining compliance with federal and state regulations[88]. - P3's credentialing program ensures compliance with CMS and NCQA requirements, with providers recredentialed every three years[89]. - Non-compliance with healthcare laws could lead to significant penalties, including civil and criminal penalties, and loss of provider licenses[94]. - The Affordable Care Act has significantly changed healthcare financing, promoting the establishment of Accountable Care Organizations (ACOs) to improve care coordination[107]. - Compliance with data privacy and security laws is critical, with potential penalties for violations[112]. Risks and Challenges - The company faces risks related to competition for qualified personnel, particularly in healthcare, which may hinder growth initiatives[149]. - The company may incur significant losses if healthcare service expenses exceed the revenue received from payors under capitation contracts[171]. - The company faces increasing competition from various entities, including Oak Street Health, Astrana Health, and agilon health, which may impact market share and profitability[175]. - Changes in government regulations or private initiatives affecting healthcare delivery could adversely impact the company's revenue[182]. - The company is exposed to risks from competitive developments, including pricing changes and the introduction of new products by competitors[213]. Technology and Innovation - The proprietary P3 Technology/Health Hub integrates clinical and claims data monthly from various sources, allowing for risk stratification and proactive care delivery[58]. - The Provider Portal enables physicians to access risk stratified patient lists and identify care opportunities, improving cost management and patient outcomes[59]. - The Analytic Management Tools platform provides real-time metrics and visualizations to support decision-making and optimize resource utilization across the organization[62]. - The company utilizes AI technologies, which are subject to evolving regulatory frameworks that may impact operations and increase compliance costs[202]. Employee and Talent Management - As of December 31, 2024, the company had approximately 360 full-time employees, with a focus on attracting and retaining skilled talent[83]. - High employee turnover and labor shortages were experienced in 2024, affecting the ability to hire qualified personnel[147]. Financial Liabilities and Assets - As of December 31, 2024, the company had $38.8 million in unrestricted cash and cash equivalents, $154.8 million in outstanding indebtedness, and $255.1 million in unpaid claims[125]. - The net carrying value of other intangible assets was $574.4 million, representing 73% of total assets[142]. - A significant goodwill impairment charge of $1,315.0 million was recorded for the year ended December 31, 2022, due to a decrease in share price[142]. Legal and Audit Risks - The company is subject to various legal proceedings and audits that could result in substantial costs and divert management's attention, adversely affecting its financial condition[206]. - The company may be required to refund amounts received from Medicare or Medicaid as a result of adverse audit findings, which could materially affect its operating results[225]. - Regulatory authorities may assert that the company's arrangements with affiliated entities constitute unlawful practices, necessitating restructuring or termination of these relationships[223].

Financial Data and Key Metrics Changes - Membership growth from Q4'23 to Q4'24 was 13%, with revenue increasing by 7% to $371 million [11] - Annual revenue for 2024 reached $1.5 billion, representing an 18% year-over-year growth [11][22] - The fourth quarter medical margin was $7 million, a decrease year-over-year due to elevated utilization trends [12] - Adjusted EBITDA for Q4 was a loss of $68 million, impacted by unfavorable out-of-period true-ups [12][25] - Full-year adjusted EBITDA loss was $167.2 million for 2024, compared to a loss of $85.5 million in the prior year [25] Business Line Data and Key Metrics Changes - At-risk membership increased to 123,800, a 14% year-over-year rise [22] - Full-year medical margin decreased by approximately 37% year-over-year to $85.5 million, driven by elevated medical expenses [24] - PMPM (per member per month) capitated revenue increased by 2.5% year-over-year [22] Market Data and Key Metrics Changes - The macro environment in the Medicare sector is improving, with positive trends expected for 2025 [9][10] - The company anticipates a $30 to $35 PMPM incremental medical margin benefit from payer benefit design changes [10] Company Strategy and Development Direction - The company is focused on strengthening its business for near-term profitability and has reaffirmed its 2025 guidance on all metrics except for total members, which is slightly raised [9][11] - A growth strategy emphasizing profitable growth is in place, with expectations to achieve profitability in 2025 [14] - The company is enhancing its leadership team with key hires to support its strategic initiatives [20] Management's Comments on Operating Environment and Future Outlook - Management noted that early indicators for 2025 are showing positive trends, with improvements in benefit design and utilization [10] - The company is optimistic about achieving its targets due to early trends observed in the first few months of the year [14] - Management expressed confidence in the accuracy of data exiting 2024, supporting effective reserve management [26] Other Important Information - The company has made significant investments in field operations for 2025, including the introduction of the P3 Restore program aimed at reducing physician burnout [19] - The company has successfully remediated seven previously identified material weaknesses in internal controls [27] Q&A Session Summary Question: Timing around reaching potential profitability - Management discussed the three major inputs for 2025 guidance, including a 7.5% revenue increase and a $16 PMPM improvement in medical costs [44][46] Question: Expectations for cash in 2025 - The company ended 2024 with $38.8 million in cash, with an additional $15 million received in early January, bringing the total to approximately $54 million [49] Question: Fourth quarter results and deviations from expectations - Management acknowledged that Q4 results were impacted by onetime negative items totaling about $17 million, which should be excluded from total Q4 EBITDA numbers [56] Question: Part D risk management - Management confirmed that about half of the Part D risk has been eliminated, with plans to address the remaining portion by January 1, 2026 [66] Question: Improving trends in utilization - Management noted slight improvements in utilization trends in Q4, with expectations that these trends will continue into Q1 of 2025 [73][75] Question: Seasonal dynamics and macro environment improvements - Management explained that the macro environment is improving due to benefit design changes and expected reductions in utilization [89]

Group 1 - The conference call is for P3 Health Partners' Fourth Quarter 2024 Earnings [1] - Participants include company executives and analysts from various research firms [1][2] - The call will cover forward-looking statements regarding financial outlook and long-term targets [4] Group 2 - The company emphasizes that forward-looking statements are predictions based on current expectations [4] - There are risks and uncertainties that could lead to actual results differing from expectations [5] - The company will refer to non-GAAP financial measures during the call [5]

Core Viewpoint - P3 Health Partners Inc. reported a quarterly loss of $0.32 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.17, indicating significant underperformance in earnings expectations [1][2]. Financial Performance - The company posted revenues of $370.69 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.92%, but showing an increase from $346.86 million in the same quarter last year [2]. - Over the last four quarters, P3 Health Partners has surpassed consensus EPS estimates only once [2]. Stock Performance - P3 Health Partners shares have declined approximately 20.8% since the beginning of the year, contrasting with the S&P 500's decline of 2.9% [3]. - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $379.5 million, and for the current fiscal year, it is -$0.37 on revenues of $1.42 billion [7]. - The estimate revisions trend for P3 Health Partners is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6]. Industry Context - The Medical Info Systems industry, to which P3 Health Partners belongs, is currently ranked in the top 17% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8].

Financial Data and Key Metrics Changes - Membership growth from Q4 2023 to Q4 2024 was 13% with revenue increasing by 7% to $371 million in Q4 2024, and annual revenue for 2024 reached $1.5 billion, representing an 18% year-over-year growth [9][17] - The fourth quarter medical margin was $7 million, a decrease year-over-year due to elevated utilization trends, while adjusted EBITDA for the quarter was a loss of $68 million [9][19] - Full year adjusted EBITDA loss was $167.2 million for 2024, compared to a loss of $85.5 million in the prior year, with a per member per month adjusted EBITDA loss of $147, a $45 change from the prior year [19] Business Line Data and Key Metrics Changes - The company reported a full year medical margin of $85.5 million, a decrease of approximately 37% year-over-year, driven by elevated medical expenses, particularly Part D expenses [18] - Capitated revenue increased by 2.5% year-over-year on a per member per month basis [17] Market Data and Key Metrics Changes - The company noted that the macro environment in the Medicare sector is improving, with positive early indicators for 2025 and favorable payer bids in CMS's 2026 advance notice [7][8] - The company expects an incremental medical margin benefit of $30 to $35 per member per month from benefit design changes [8] Company Strategy and Development Direction - The company is focused on strengthening its business for near-term profitability, with programmatic initiatives representing over $130 million of adjusted EBITDA opportunity on schedule [6] - The growth strategy emphasizes deliberate and profitable growth, with expectations to achieve profitability in 2025 [10] - The company is enhancing its senior leadership team with key hires to support its strategic initiatives [8][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the meaningful progress towards long-term sustainable growth, with a focus on maintaining a strong control environment established in 2024 [20][21] - The company reaffirmed its 2025 guidance for revenues between $1.35 billion and $1.5 billion, with adjusted EBITDA expected to range from negative $35 million to positive $5 million [10][21] Other Important Information - The company has made significant investments in field operations for 2025 and introduced the P3 Restore program aimed at reducing physician burnout [13][14] - The company has successfully remediated seven previously identified material weaknesses in internal controls [20] Q&A Session Summary Question: Can you elaborate on the timing around reaching potential profitability? - Management indicated that the guidance for 2025 includes a 7.5% increase in revenue year-over-year and a $16 PMPM improvement in medical costs, with operational efficiencies contributing to the profitability target [31][32] Question: What are the expectations for cash in 2025? - The company ended 2024 with a cash balance of $38.8 million, with an additional $15 million received in January 2025, bringing the effective starting cash position to about $54 million [35][36] Question: Did Q4 results come in line with expectations? - Management acknowledged that Q4 results were impacted by one-time negative items totaling about $17 million, which should be excluded from total Q4 EBITDA numbers [41] Question: What are the trends in utilization? - Management reported slight improvements in utilization trends, with decreases in MIDS per 1,000 and emergency department visits per 1,000, although unit costs remained elevated [25][56] Question: Can you elaborate on the improving trends in the Medicare environment? - Management highlighted that benefit design changes from 2024 to 2025 are expected to reduce utilization, contributing to a more favorable environment [69]

Revenue Performance - Total revenue for Q4 2024 was $370.7 million, a 7% increase from $346.9 million in Q4 2023[5] - Full-year 2024 total revenue reached $1.50 billion, an 18% increase compared to $1.27 billion in 2023[5] - Total operating revenue for the year ended December 31, 2024, was $1,500,455,000, an increase of 18.4% from $1,266,375,000 in 2023[20] - Capitated revenue for Q4 2024 was $367,456,000, up 7.2% from $342,836,000 in Q4 2023[20] - Capitated revenue for the year ended December 31, 2024, reached $1.484 billion, up from $1.252 billion in 2023, reflecting a growth of 18.5%[28] Membership and Guidance - At-risk membership increased by approximately 14% to 123,800 from 108,900 in the prior year[5] - The company affirmed its 2025 guidance with total revenues projected between $1.35 billion and $1.50 billion[7] - The expected at-risk members for 2025 are between 109,000 and 119,000[7] Losses and Expenses - Net loss for Q4 2024 was $129.1 million, compared to a net loss of $69.1 million in Q4 2023[5] - The net loss for the year ended December 31, 2024, was $310,378,000, compared to a net loss of $186,426,000 in 2023, representing a 66.4% increase in losses[22] - Adjusted EBITDA loss for Q4 2024 was $67.6 million, compared to a loss of $44.3 million in Q4 2023[5] - Adjusted EBITDA loss for the year ended December 31, 2024, was $167.199 million, compared to a loss of $85.504 million in 2023, showing an increase of 95.4%[25] - Total operating expense for Q4 2024 was $509.189 million, compared to $411.121 million in Q4 2023, an increase of 23.9%[32] - Medical expenses for the year ended December 31, 2024, were $1,559,372,000, an increase of 26.3% from $1,234,740,000 in 2023[20] - Medical claims expense for the year ended December 31, 2024, totaled $1.398 billion, up from $1.117 billion in 2023, representing a rise of 25.1%[28] Profitability Metrics - Full-year 2024 gross profit was a loss of $58.9 million, compared to a profit of $31.6 million in the prior year[5] - Medical margin for full-year 2024 was $85.5 million, a 37% decrease from $135.1 million in the prior year[5] - Medical margin for Q4 2024 was $7.278 million, down from $9.075 million in Q4 2023, indicating a decrease of 20%[28] - Medical margin PMPM for the year ended December 31, 2024, was $75, down from $108 in 2023, a decrease of 30.6%[28] Assets and Liabilities - Total current assets increased to $184,140,000 in 2024 from $166,017,000 in 2023, reflecting an increase of 10.9%[18] - Total liabilities rose significantly to $633,891,000 in 2024 from $427,305,000 in 2023, marking a 48.3% increase[18] - Cash and restricted cash at the end of 2024 totaled $44,102,000, up from $40,934,000 at the end of 2023, indicating a 5.3% increase[23] Reserves and Interest Expenses - The company reported a premium deficiency reserve of $67,368,000 in 2024, compared to $13,670,000 in 2023, reflecting a significant increase[20] - Premium deficiency reserve for Q4 2024 was $37.927 million, compared to a reserve of $(3.344) million in Q4 2023, indicating a significant change[25] - The company incurred interest expense of $22,173,000 for the year ended December 31, 2024, compared to $15,985,000 in 2023, representing a 38.5% increase[22] - Interest expense, net for the year ended December 31, 2024, was $22.173 million, compared to $15.985 million in 2023, reflecting a rise of 38.5%[25] Shareholder Metrics - The weighted average common shares outstanding for the year ended December 31, 2024, were 145,175,000, compared to 94,889,000 in 2023, an increase of 53%[20]

Core Viewpoint - P3 Health Partners Inc. (PIII) has experienced a decline of 7.6% over the past week, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottom, suggesting that selling pressure may be subsiding [2][4]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that despite a downtrend, buying interest has emerged [3][4]. - This pattern is significant when it occurs at the bottom of a downtrend, signaling that bears may have lost control [4]. Fundamental Analysis - There has been a recent upward trend in earnings estimate revisions for PIII, which is a bullish indicator [6]. - The consensus EPS estimate for the current year has increased by 11.9% over the last 30 days, reflecting analysts' agreement on the company's improved earnings potential [7]. - PIII holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, indicating strong potential for outperformance [8].

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].