P3 Health Partners Reports Q2 2025 Results with $355.8 Million Revenue, 6% YoY Drop, and $120-$170 Million EBITDA Opportunities for 2026.

P3 Health Partners reported a 6% YoY decrease in total revenue to $355.8 million for Q2 2025, due to a 9% decline in average at-risk membership. Despite this, the company identifies $120-$170 million in EBITDA opportunities for 2026 and expects sustained profitability. Medical cost trends remained flat amidst industry-wide inflation, and the company has revised its fiscal 2025 guidance to reflect these adjustments.

P3 Health Partners Inc. (NASDAQ: PIII) reported a 6% year-over-year (YoY) decrease in total revenue to $355.8 million for Q2 2025, primarily due to a 9% decline in average at-risk membership. The company's medical margin, calculated as capitation revenue minus medical costs, stood at $30.6 million, a 25.5% decrease from the previous year. Despite these challenges, P3 Health Partners identified $120-$170 million in EBITDA improvement opportunities for 2026 and expects sustained profitability.

The company's adjusted EBITDA loss deepened to $17.1 million, largely due to a single underperforming market/payer. Operating expenses declined by $3 million compared to the prior year, a 13% improvement. P3 Health Partners ended the quarter with $39 million in cash and restricted cash, reflecting strong liquidity.

P3 Health Partners' CEO, Aric Coffman, highlighted the company's progress in renegotiating contracts, which contributed approximately $5 million in Q2 and is expected to bring further benefits in the second half of the year. The company also reported a 10% YoY improvement in funding across its membership on a normalized per member basis.

Looking ahead, P3 Health Partners expects at-risk membership to remain within 109,000 to 119,000 and total revenues to fall between $1.35 billion and $1.5 billion for fiscal 2025. Medical margin is forecast between $124 million and $154 million, while adjusted EBITDA is projected to show a loss in the range of $69 million to $39 million.

The company's liquidity remains a watch point, with $39.3 million in cash and restricted cash as of June 30, 2025, and sustained operating cash outflows. P3 Health Partners does not currently pay a dividend.

References:
[1] https://finance.yahoo.com/news/p3-health-partners-inc-piii-190448868.html
[2] https://www.nasdaq.com/articles/p3-health-partners-posts-q2-revenue-drop