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• Revenue: Fourth quarter revenue of $371 million, a 7% increase year over year; full-year 2024 revenue of $1.5 billion, representing 18% growth year over year.

• Membership Growth: At-risk membership increased by 14% year over year to 123,800.

• Medical Margin: Fourth quarter medical margin of $7 million; full-year medical margin of $85.5 million, a decrease of approximately 37% year over year.

• Adjusted EBITDA: Fourth quarter adjusted EBITDA loss of $68 million; full-year adjusted EBITDA loss of $167.2 million.

• Operating Expenses: Reduction of operating expenses by $20 million through operational efficiencies.

• Cash Balance: Cash balance of $38.8 million as of December 31, with an additional $15 million received in early January 2025.

• 2025 Revenue Guidance: Reaffirmed revenue range of $1.35 billion to $1.5 billion.

• 2025 Adjusted EBITDA Guidance: Reaffirmed adjusted EBITDA guidance range of $35 million to $5 million positive.

• Medical Margin Guidance for 2025: Expected to be in the range of $174 million to $210 million.

• Warning! GuruFocus has detected 3 Warning Signs with PIII.

Release Date: March 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• P3 Health Partners Inc (NASDAQ:PIII) reported a 13% membership growth and a 7% increase in revenue for the fourth quarter of 2024.

• The company reaffirmed its 2025 revenue guidance of $1.35 billion to $1.5 billion and expects to achieve profitability this year.

• P3 Health Partners Inc (NASDAQ:PIII) has significantly enhanced its senior leadership team with key new hires, bringing substantial industry experience.

• The company is on track to realize a $130 million plus EBITDA improvement opportunity through operational efficiencies, contract rationalization, and operational execution.

• P3 Health Partners Inc (NASDAQ:PIII) has introduced innovative programs like P3 Restore to reduce physician burnout, which is expected to improve patient outcomes and clinician tenure.

Negative Points

• The fourth quarter medical margin decreased year over year due to elevated utilization trends.

• Adjusted EBITDA for the fourth quarter was a loss of $68 million, including unfavorable out-of-period true-ups related to a single payer partner.

• Full-year medical margin decreased by approximately 37% year over year, driven by elevated medical expenses, especially Part D expenses.

• Adjusted EBITDA loss for the full year 2024 was $167.2 million, compared to a loss of $85.5 million in the prior year.

• The company faced increased unit costs and higher utilization of elective or surgical procedures, contributing to overall higher costs.