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Dec 31, 2024
P3 Health Q4 2024 Earnings Report
P3 Health reported increased revenue and at-risk membership in Q4 2024, but widened net losses and reduced medical margins amid higher medical expenses and premium deficiency reserves.
Key Takeaways
In Q4 2024, P3 Health saw revenue grow 7% year-over-year to $370.7 million, while net loss widened to $129.1 million. Medical margin decreased to $7.3 million, with a higher premium deficiency reserve impacting results. The company grew its at-risk membership to nearly 124,000.
Total revenue reached $370.7 million, a 7% YoY increase.
Capitated revenue was $367.5 million, up 7% YoY.
Medical margin dropped to $7.3 million from $9.1 million YoY.
Net loss widened to $129.1 million versus $69.1 million in Q4 2023.
P3 Health
P3 Health
Forward Guidance
P3 reaffirmed its 2025 guidance, expecting $1.35B to $1.5B in revenue and up to $210M in medical margin as it continues executing strategic initiatives to reach financial sustainability.
Positive Outlook
- 2025 revenue guidance set at $1.35B to $1.5B.
- Medical margin forecasted between $174M to $210M.
- PMPM medical margin expected between $133 and $147.
- Path to profitability supported by $130M+ programmatic opportunities.
- 14% YoY growth in at-risk membership.
Challenges Ahead
- Net loss widened significantly compared to prior year.
- Medical margin and PMPM metrics declined YoY.
- High premium deficiency reserve impacted quarterly results.
- Adjusted EBITDA loss increased by over 50% YoY.
- Continued reliance on non-GAAP metrics for profitability outlook.