P3 Health Partners Q2 Earnings Call Highlights

P3 Health Partners reported $54 million in second-quarter adjusted EBITDA , up from a $17 million loss a year earlier, but the result included $45 million from favorable payer settlements and prior-year development. Excluding those items, underlying quarterly EBITDA was approximately $9 million. The company said medical-cost trends remained favorable, with first-half Medicare Advantage costs running 1.8% below the 2025 baseline. Clinical initiatives also expanded, including point-of-care tools reaching more than 65,000 lives and strong engagement with high-risk members. P3 raised its 2026 adjusted EBITDA outlook to $80 million-$110 million , with a midpoint of $95 million. At-risk membership declined to about 105,000, while the company plans to continue its Nebraska partnership in 2027 and delay full-risk operations there until 2028. P3 Health Partners reported second-quarter adjusted EBITDA of $54 million and raised its full-year 2026 outlook, while noting that the quarterly result included $45 million of favorable payer settlements and prior-year development. Chief Executive Officer Aric Coffman said the company’s second-quarter performance reflected continued execution on contract restructuring, network concentration, medical-cost management and clinical operations. P3 reported $80 million in adjusted EBITDA for the first half of 2026, compared with a $39 million loss in the first half of 2025. “The core economic levers that drive the business, our contract structure, our operating model, and our clinical execution are increasingly within our control,” Coffman said. Revenue for the second quarter was $386 million, up from $356 million in the prior-year period, despite a lower at-risk membership base. Chief Financial Officer Leif Pedersen said per-member funding for the at-risk population increased about 15% year over year, which he attributed to rate progression, contract restructuring and improved burden-of-illness documentation. At-risk membership totaled about 105,000 at the end of the quarter, down from 116,000 a year earlier. Pedersen said the decline reflected portfolio actions taken during 2025, including exits from arrangements that did not meet P3’s economic thresholds. The company also managed approximately 28,000 lives through management-services arrangements, bringing total lives under management to about 133,000. Medical claims expense totaled $269 million. The result included approximately $45 million in favorable payer settlements and prior-year development. During the question-and-answer session, Pedersen said the payer settlement itself totaled $41 million, did not affect revenue and was recorded solely in medical claims expense. Medical margin was $98 million, or $311 per member per month. Medical loss ratio was 85.6% after adjusting for favorable settlements and prior-year development. Adjusted operating expense was $32 million, including investments in coding and documentation support as well as Nebraska-market infrastructure. Adjusted EBITDA was $54 million, versus a $17 million loss in the second quarter of 2025. Excluding the $45 million of favorable payer settlements and prior-year development, Pedersen said underlying second-quarter adjusted EBITDA was approximately $9 million. Across the first half, P3 recognized $62 million of favorable payer settlements and prior-year development, including $17 million in the first quarter and $45 million in the second quarter. The company said underlying first-half adjusted EBITDA was approximately negative $18 million. Medical-Cost Trend an...