P3 Health Partners Inc
Q2 2026 Earnings
Includes $16.4 million mark-to-market loss on stock warrants and purchased put option; $8.7 million favorable premium deficiency reserve release; $9.6 million cumulative preferred stock dividends reducing income attributable to Class A common stockholders
Market Reaction
S&P 500 over the same 30 days: −0.81%.
Did PIII Beat Earnings? Q2 2026 Results
P3 Health Partners delivered a sharply better-than-expected second quarter for fiscal 2026, posting GAAP loss per share of $0.63, well ahead of the $1.90 consensus estimate by 66.75%, while revenue of $386.38 million beat expectations by 2.27% and grew 8.6% from a year ago. The GAAP figure includes a $16.4 million mark-to-market loss on stock warrants and a purchased put option, an $8.7 million favorable premium deficiency reserve release, and $9.6 million in cumulative preferred stock dividends reducing income attributable to Class A common stockholders. The most material driver of the quarter's improvement was a structural overhaul of payer contracts and network rationalization under CEO Dr. Aric Coffman, which helped swing the company to net income of $15.65 million from a net loss of $43.66 million a year earlier, while adjusted EBITDA reached $54.45 million versus a loss of $17.11 million in Q2 2025. Looking ahead, management raised its full-year 2026 adjusted EBITDA guidance to $80 million to $110 million, with total revenue guided at $1.5 billion to $1.6 billion.
- Per-member capitated revenue increased 15% YoY driven by improved network economics, rate progression, and burden of illness performance
- Favorable impact of payer settlements and prior year development recognized in Q2
- Structural improvements embedded across contracts, network, and operating model
- Premium deficiency reserve release of $8.7 million in Q2 2026
- Intentional network and payer rationalization reducing at-risk membership by 10% but improving unit economics
“Q2 demonstrates that the business is now executing according to our plan. We delivered $54 million of adjusted EBITDA, with the core business driving improved profitability quarter over quarter. Our results reflect the structural improvements now embedded across our contracts, our network, and our operating model, the work I outlined at the onset of my tenure. That strength gives us the confidence to raise our full-year 2026 adjusted EBITDA outlook and to enter the second half focused on execution.”
P3 Health Partners CEO, on the earnings call
Forward Guidance & Outlook
P3 raised its full-year 2026 adjusted EBITDA guidance to $80 million–$110 million, reflecting strong first-half performance including the benefit of payer settlements and prior year development. Full-year 2026 total revenue is guided at $1.5 billion–$1.6 billion. Medical margin is expected at $260 million–$300 million ($210–$240 PMPM). At-risk membership is projected at 102,000–106,000 for the full year. Management noted the company enters the second half focused on execution.
PIII YoY Financials
PIII Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.