P3 Raises 2026 Adjusted EBITDA Midpoint to $100 Million

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter adjusted EBITDA was $20.9 million, or $66 a member a month, after a $45.9 million loss a year earlier.

P3 Health Partners Inc. (PIII), a patient-centered and physician-led population health management company, reported adjusted EBITDA of $20.9 million, or $66 per-member-per-month, for the third quarter ended September 30, 2026, compared with a $45.9 million loss, or negative $132 PMPM, a year earlier.

The sequential step-down from $54.4 million of adjusted EBITDA, or $173 PMPM, in the second quarter left the company still profitable on that non-GAAP measure after a year-ago loss. Net income was $30.8 million versus a $69.5 million net loss in the year-ago quarter.

Total revenue was $396 million, up 15% from the prior-year quarter, a faster pace than the 9% year-over-year increase in the second quarter. Per-member capitated revenue rose 18% from the same period a year earlier, after 15% growth in the second quarter. The company said the capitated increase was driven by improved network economics, rate progression, and burden of illness performance. Capitated revenue was $366.3 million; other revenue was $30.1 million.

At-risk membership was approximately 105,000, down 9% from the year-ago quarter after a 10% year-over-year decline in the second quarter. The company said the decrease reflected previously disclosed intentional network and payer rationalization. Total lives under management were approximately 133,500, including about 28,000 lives under management service arrangements.

Medical margin was $43.9 million, or $140 PMPM, versus $4.4 million, or $13 PMPM, a year earlier. The company said the results include the favorable impact of payer settlements and prior-year development recognized in the quarter. Excluding those items, medical margin was $35.0 million, or $111 PMPM. Medical claims expense was $322.4 million.

Operating income was $23.0 million, compared with an operating loss of $44.2 million a year earlier. Interest expense, net, was $5.0 million. Cash was $43.9 million at September 30, 2026.

The company raised full-year 2026 adjusted EBITDA guidance to a $90 million–$110 million range, lifting the midpoint to $100 million from the $80 million–$110 million range issued after the second quarter. It said the revision reflects underlying year-to-date performance, as well as the prior-year development and payer settlements recognized in the quarter. Full-year total revenue guidance was raised at the low end to $1,525 million from $1,500 million, with the high end unchanged at $1,600 million. Medical margin guidance of $260 million–$300 million, or $210–$240 PMPM, and the 102,000–106,000 at-risk member range were reiterated.

Year-to-date adjusted EBITDA for the nine months ended September 30, 2026, was $101 million, or $106 PMPM, compared with an $85.2 million loss, or negative $81 PMPM, in the year-ago nine months. Year-to-date medical margin was $215.4 million, or $226 PMPM, versus $52.2 million, or $50 PMPM, a year earlier. Net income for the nine months was $49.5 million versus a $157.4 million loss.

Chief executive Dr. Aric Coffman said the company carries real momentum into 2027, as evidenced by its medical cost trend.