P3 Health Partners reported higher third-quarter revenue and a sharp swing to profit, while adjusted EBITDA reached $20.9 million for the quarter. The physician-led population-health company also raised the low end of its 2026 adjusted EBITDA guidance, citing year-to-date performance as well as favorable payer settlements and prior-year medical-cost developments recognized in the quarter.
The results came as P3 continued to reduce its at-risk membership through previously announced network and payer rationalization. Revenue grew despite that decline, supported by higher capitated revenue per member.
Third-quarter results and membership
- At-risk membership averaged approximately 105,000, down 9% from a year earlier. P3 attributed the decrease to its intentional network and payer rationalization.
- Total lives under management were approximately 133,500, including about 28,000 people covered through management-service arrangements.
- Revenue increased 15% year over year to $396 million. Total capitated revenue per member rose 18%, which P3 attributed to improved network economics, rate increases and performance related to members’ illness burden.
- Medical margin was $43.9 million, or $140 per member per month. That figure included favorable payer settlements and prior-year development. Excluding those items, medical margin was $35.0 million, or $111 per member per month.
- Net income was $30.8 million, compared with a net loss of $69.5 million in the year-earlier quarter.
- Adjusted EBITDA was $20.9 million, or $66 per member per month, versus an adjusted EBITDA loss of $45.9 million, or negative $132 per member per month, a year earlier. The company’s headline also cited $101 million of adjusted EBITDA year to date.
Updated 2026 outlook
- P3 raised the low end of its full-year adjusted EBITDA guidance to $90 million, putting the range at $90 million to $110 million and the midpoint at $100 million. The company cited underlying year-to-date performance, along with the payer settlements and prior-year development recognized in the third quarter.
- Other 2026 guidance is unchanged in the figures provided: at-risk membership of 102,000 to 106,000; revenue of $1.525 billion to $1.6 billion; and medical margin of $260 million to $300 million, or $210 to $240 per member per month.
The company said its CEO, Dr. Aric Coffman, sees momentum heading into 2027 and pointed to medical-cost trends, but did not provide a numerical 2027 outlook in the announcement. P3 scheduled a conference call and webcast for November 9.