P3 Health Partners Reports $323.1 Million Net Loss and Revenue Decline for 2025

P3 Health Partners Inc. reported a net loss of $323.1 million for the year ended December 31, 2025, compared to a net loss of $310.4 million for the previous year. The company's total operating revenue decreased by 3% to $1.459 billion from $1.500 billion in 2024, with capitated revenue declining by 4% to $1.429 billion. This decrease in capitated revenue was primarily attributed to a 7% reduction in the average number of at-risk members, which fell from 126,000 to 116,100, due to the strategic termination of underperforming payor contracts and affiliate providers.

Despite the revenue decline, medical expense also decreased by 3% to $1.519 billion, reflecting the reduced membership. The company's medical margin, a non-GAAP metric, was $23.5 million, significantly lower than the $85.5 million reported in the prior year. The company's operating loss improved slightly to $270.3 million from $320.7 million in the prior year. The company's platform support costs, which include regionally-based support personnel and other operating costs to support the company's markets, were $86.1 million, representing 5.9% of total operating revenue.

Key operational developments included the formation of P3 Commonwealth Innovation MSO, LLC, a joint venture with Commonwealth Primary Care ACO, LLC, aimed at improving the performance and quality of accountable care organizations. As of December 31, 2025, P3 Health Partners had approximately 2,400 primary care physicians in its affiliate network, a decrease from 3,100 in the previous year. The company also continued to manage its capital structure, issuing unsecured promissory notes and warrants to VBC Growth SPV entities, while also amending its existing Term Loan Agreement to extend the interest-only period and adjust interest rates.

Looking ahead, P3 Health Partners faces significant challenges, including substantial doubt about its ability to continue as a going concern. As of December 31, 2025, the company had $25.0 million in unrestricted cash and cash equivalents, and based on current projections, will require additional funding in 2026. The company is actively exploring options to raise additional capital through debt financing, equity issuances, and asset sales. The company's ability to achieve profitability and maintain compliance with debt covenants remains uncertain, and its future performance will depend on its ability to grow membership, manage medical expenses, and achieve operating efficiencies.