P3 Health Partners (PIII) Q4 2024 earnings summary

Executive summary

• Revenue grew 18% year-over-year to $1.5B in 2024, with at-risk membership up 14% to 123,800.

• Net loss widened to $310.4M for 2024, compared to $186.4M in the prior year.

• Adjusted EBITDA loss increased to $167.2M from $85.5M year-over-year, with $130M+ improvement initiatives on track.

• 2025 guidance reaffirmed for all metrics except total members, which is slightly raised; management highlights $130M+ in programmatic opportunities for financial sustainability.

• Enhanced senior leadership with key hires to support growth and operational execution.

Financial highlights

• Q4 2024 revenue was $371M, up 7% year-over-year; full-year revenue reached $1.5B, up 18%.

• Membership increased 13% year-over-year in Q4; at-risk membership reached 123,800, up 14%.

• Medical Margin for 2024 was $85.5M, down 37% from $135.1M in 2023.

• Adjusted EBITDA loss for 2024 was $167.2M, compared to $85.5M loss prior year.

• Gross profit for 2024 was a loss of $58.9M, down from a positive $31.6M in 2023.

Outlook and guidance

• 2025 revenue guidance reaffirmed at $1.35B–$1.5B; Adjusted EBITDA guidance between -$35M and $5M.

• Medical Margin guidance for 2025 is $174M–$210M, with PMPM Medical Margin of $133–$147.

• Total membership guidance for 2025 increased to 109,000–119,000, driven by ACO growth.

• Expectation to achieve profitability in 2025, supported by early positive trends and operational momentum.

• Management cautions actual results may differ materially due to various risk factors.