10-Q · May 14, 2026
P3 Health Partners reported Q4 2026 results showing total revenue of $384.8 million, exceeding estimates by 7.6%. Despite this revenue increase, the company faced significant losses, posting an EPS of -23.02, reflecting…
Earnings analysis · 10-Q
PIII earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
P3 delivered Q2 revenue of $386.381 million and diluted EPS of $(0.63), beating consensus estimates of $377.8 million and $(1.90), while adjusted EBITDA improved to $54.4 million from a $(17.1) million loss in the…
Read full summary
P3 delivered Q2 revenue of $386.381 million and diluted EPS of $(0.63), beating consensus estimates of $377.8 million and $(1.90), while adjusted EBITDA improved to $54.4 million from a $(17.1) million loss in the prior-year quarter. However, EPS declined from $0.32 in Q1 2026, first-half operating cash use was $89.4 million, and the filing states that substantial doubt exists about the company’s ability to continue as a going concern. The $252.5 million debt exchange and additional preferred financing improve near-term capital access but create approximately $308.4 million of senior preferred claims accruing dividends at 13.5% to 19.5%, making the outlook mixed.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.63
What stood out
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Revenue Beat and Year-over-Year Growth
Q2 revenue was $386.381 million, up from $356 million in Q2 2025, an increase of $30.381 million or 8.5%. Revenue exceeded the $377.8 million consensus estimate by $8.581 million, or 2.3%.
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EPS Materially Better Year Over Year
Diluted EPS was $(0.63), improving by $5.60 from $(6.23) in Q2 2025, but declining by $0.95 from $0.32 in Q1 2026. EPS exceeded the $(1.90) consensus estimate by $1.27.
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Sharp Adjusted EBITDA Improvement
Adjusted EBITDA was $54.4 million versus an adjusted EBITDA loss of $17.1 million in the prior-year quarter, a year-over-year improvement of $71.5 million.
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Debt Exchange Reduced Promissory Notes
The company exchanged approximately $252.5 million of outstanding promissory notes, including principal, accrued interest and back-end fees, for non-convertible preferred stock on April 27, 2026.
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Additional Preferred Capital Raised
The company sold $51.3 million of Series D preferred-stock units as of June 30, 2026 and sold an additional $16.0 million on July 1, 2026, providing additional capital under the $70.0 million purchase agreement.
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Disclosure Controls Remained Effective
Management reported that disclosure controls were effective as of June 30, 2026 and that there were no changes in internal control over financial reporting during the quarter that materially affected, or were reasonably likely to materially affect, controls.
What to watch
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Large Senior Preferred Dividend Burden
Cumulative preferred dividends accrue at rates of 13.5% to 19.5% on approximately $308.4 million of preferred-stock stated value. For the three months ended June 30, 2026, $9.6 million of preferred dividends converted $7.4 million of net income attributable to the controlling interest into a $2.1 million net loss attributable to Class A common stockholders.
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Going-Concern and Liquidity Risk
The filing states that substantial doubt exists about the company’s ability to continue as a going concern. The cumulative preferred-stock obligation adds a further claim on limited cash resources, with preferred-stock stated value of approximately $308.4 million and dividend rates as high as 19.5%.
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Ongoing DOJ Investigation
The company received a civil investigative demand from the DOJ in June 2024 under the False Claims Act concerning insurance-agent and broker arrangements, including remuneration paid to Medicare Advantage brokers. The filing states that no assurance can be given regarding the timing or outcome of the investigation.
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Concentrated CPF Control and Conflicts
All outstanding preferred stock is held by affiliates of Chicago Pacific Founders, which also holds approximately 40% of the company’s outstanding common stock and has rights to designate an additional independent board member plus information and protective rights.
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Warrant Dilution and Resale Pressure
The Series D preferred-stock issuances included warrants to purchase Class A common stock. Exercise of those warrants would dilute existing common stockholders, and the company agreed to facilitate resale registration of the underlying shares, which could create additional selling pressure.
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Senior Claims Constrain Capital Flexibility
The preferred stock ranks senior to all common stock and carries a $100.00-per-share liquidation preference plus accumulated and unpaid dividends. As of June 30, 2026, the company had sold $51.3 million of Series D units, with $18.7 million remaining available under the purchase agreement.
Management's outlook
Full-year 2026 revenue outlook was $1.5 billion-$1.6 billion. Management raised full-year 2026 adjusted EBITDA guidance to $80 million-$110 million; the filing/release did not disclose numerical EPS guidance.
Earlier filings 4
10-K · March 26, 2026
P3 Health Partners presents a physician-led value-based care strategy (the “P3 Care Model”) focused on Medicare Advantage and capitated PMPM arrangements, supported by 2,400 contracted PCPs and a physician retention…
10-Q · November 14, 2025
P3 Health Partners reported Q3 2025 operating revenue of $345,253,000 and a net loss of $69,461,000 (basic EPS $(9.67)). Operating loss narrowed to $44,223,000 from $106,990,000 in Q3 2024, but the company remains…
10-Q · May 15, 2025
P3 Health Partners reported Q1 2025 revenue of $373.225 million, down from $388.488 million in Q1 2024, with a GAAP net loss per share of $(6.28). Operating loss narrowed to $(38.088) million (−10.2% of revenue) from…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.