P3 Health Partners Inc. (NASDAQ: PIII), a leading patient-centered and physician-led population health management company, has released its financial results for the fourth quarter and full year ending December 31, 2024. The company also provided an update on its 2025 guidance.
“Our business model remains robust, driven by consistent member and revenue growth, positive quality outcomes, and strong provider retention,” said Aric Coffman, CEO of P3. “With over $130 million in identified programmatic opportunities, we are advancing toward financial sustainability, while continuing to support our payor and provider partners in delivering high-quality, cost-efficient care and fostering long-term market growth.”
Fourth Quarter 2024 Financial Highlights
P3 Health Partners reported total revenue of $370.7 million for the fourth quarter, a 7% increase from $346.9 million in the same period last year. Capitated revenue also saw a 7% rise, reaching $367.5 million, up from $342.8 million in Q4 2023.
However, the company posted a gross profit loss of $39.5 million, compared to a loss of $20.8 million in Q4 2023. On a per-member-per-month (PMPM) basis, the gross profit loss stood at $103, compared to a loss of $65 in the previous year.
The medical margin for the quarter was $7.3 million, down from $9.1 million in Q4 2023. The medical margin PMPM was $19, compared to $28 in the same period last year.
P3 Health Partners’ net loss for the quarter was $129.1 million, a significant increase from the $69.1 million loss recorded in Q4 2023. On a PMPM basis, the net loss was $335, compared to $220 in the prior year.
The company’s adjusted EBITDA loss for the fourth quarter was $67.6 million, up from $44.3 million in Q4 2023. Adjusted EBITDA loss PMPM for the quarter was $175, compared to $138 in the previous year.
Full-Year 2024 Financial Overview
For the full year, P3 Health Partners reported a 14% increase in at-risk membership, which grew to 123,800 from 108,900 in 2023.
Total revenue for the year was $1.50 billion, an 18% increase from $1.27 billion in 2023. Capitated revenue also rose by 18%, totaling $1.48 billion, compared to $1.25 billion in the previous year.
The company reported a gross profit loss of $58.9 million, a sharp decline from the $31.6 million profit in 2023. On a PMPM basis, the gross profit loss was $52, compared to a positive $25 in the prior year.
P3’s medical margin for 2024 stood at $85.5 million, a decrease of 37% compared to $135.1 million in 2023. The medical margin PMPM was $75, down 48% from $108 in the previous year.
The net loss for the year was $310.4 million, compared to a loss of $186.4 million in 2023. Adjusted EBITDA loss for the full year was $167.2 million, up from $85.5 million in the prior year. Adjusted EBITDA loss PMPM was $147, compared to $68 in 2023.
P3 Health Partners continues to focus on long-term growth strategies and efficiency improvements as it works toward greater financial sustainability.
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