P3 Health Partners(US:PIII)2025-11-13 23:14Financial Performance - Total revenue for Q3 2025 was $345.3 million, a decrease of 5% compared to the same quarter last year[6]. - Total operating revenue for Q3 2025 was $345.3 million, a decrease of 4.8% from $362.1 million in Q3 2024[22]. - Capitated revenue for the nine months ended September 30, 2025, was $1.06 billion, down 4.8% from $1.12 billion in the same period of 2024[22]. - Capitated revenue for Q3 2025 was $341,555 thousand, down from $357,706 thousand in Q3 2024, reflecting a 4.3% decline[29]. - Net loss for the nine months ended September 30, 2025, was $157.4 million, compared to a net loss of $181.2 million in the same period of 2024[24]. - Net loss for Q3 2025 was $69,461 thousand, a decrease from a net loss of $102,850 thousand in Q3 2024, representing a 32% improvement[26]. - Adjusted EBITDA loss for Q3 2025 was $45.9 million, or $132 PMPM, with year-to-date Normalized Adjusted EBITDA at a loss of $70.1 million[6]. - Adjusted EBITDA loss for Q3 2025 was $45,911 thousand, an improvement from a loss of $71,000 thousand in Q3 2024, indicating a 35% reduction in losses[26]. - Normalized adjusted EBITDA loss for Q3 2025 was $48,431 thousand, compared to $75,797 thousand in Q3 2024, indicating a 36% improvement[26]. Medical Margin and Costs - Medical margin for Q3 2025 was $4.4 million, or $13 PMPM, impacted by unfavorable mid-year settlement adjustments[6]. - Medical margin for fiscal 2025 is expected to range from $67 million to $82 million[5]. - Medical margin for Q3 2025 increased to $4,412 thousand compared to $540 thousand in Q3 2024, showing a significant improvement[29]. - Medical claims expense for Q3 2025 was $337,143 thousand, slightly lower than $357,166 thousand in Q3 2024, reflecting a 5.6% decrease[29]. - The company continues to see stable medical cost trends and strengthening operating discipline[2]. Assets and Liabilities - Total current assets decreased to $135.6 million as of September 30, 2025, from $184.1 million as of December 31, 2024[19]. - Total liabilities increased to $664.6 million as of September 30, 2025, compared to $633.9 million as of December 31, 2024[19]. - The company’s total stockholders' equity showed a deficit of $18.7 million as of September 30, 2025, compared to a positive equity of $75.9 million as of December 31, 2024[19]. Interest and Expenses - The company incurred interest expense of $20.5 million in Q3 2025, significantly higher than $5.6 million in Q3 2024[22]. - Interest expense, net for Q3 2025 was $20,527 thousand, significantly higher than $5,647 thousand in Q3 2024, marking an increase of 264%[26]. - Total operating expense for Q3 2025 was $389,476 thousand, down from $469,114 thousand in Q3 2024, a decrease of 17%[33]. - Adjusted operating expense for Q3 2025 was $21,219 thousand, down from $31,552 thousand in Q3 2024, a reduction of 32.7%[33]. Membership and Network - Average at-risk membership was approximately 116,000 members for Q3 2025, reflecting a 10% decrease year-over-year due to intentional network and payer rationalization[6]. - P3 Health Partners operates with a network of over 2,700 affiliated primary care providers across four states[10]. Future Outlook - The company identified $120 to $170 million in EBITDA expansion opportunities, positioning for sustainable profitability in 2026 and beyond[2]. - Fiscal 2025 guidance estimates total revenues between $1,400 million and $1,450 million, with an adjusted EBITDA loss projected between $110 million and $95 million[5]. - Medical margin PMPM for Q3 2025 was $13, up from $1 in Q3 2024, representing a substantial increase[29]. Conference Call - Management will host a conference call on November 14, 2025, to discuss these results and future outlook[9].