Company: PIII
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001832511-25-000025
Chunk: 9

Company: P3 Health Partners Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 9
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52,227 $78,181 

The following table sets forth a reconciliation of our gross profit, the most directly comparable GAAP metric, to medical margin:

Three Months Ended September 30,Nine Months Ended September 30,2025202420252024(in thousands)Gross profit$(24,536)$(39,796)$(18,916)$(19,379)Other patient service revenue(3,698)(4,418)(11,470)(13,623)Other medical expense32,646 44,754 82,613 111,183 Medical margin$4,412 $540 $52,227 $78,181 

Key Performance Metrics

We monitor the following operating metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions. 

Gross Profit

Gross profit represents the amount earned from total operating revenue less the sum of: (i) medical claims expenses and (ii) other medical expenses including physician compensation expense related to surplus sharing and bonuses and other direct medical expenses incurred to improve care for our members. We believe this metric provides insight into the economics of the P3 Care Model, as it includes all medical claims expense associated with our members’ care as well as partner compensation and additional medical costs we incur as part of our aligned partnership model. Other medical expenses are largely variable and proportionate to the level of surplus in each respective market, among other cost factors. 

The following table presents our gross profit:

Three Months Ended September 30,Nine Months Ended September 30,2025202420252024(in thousands)Total operating revenue$345,253 $362,124 $1,074,266 $1,129,769 Less: medical claims expense(337,143)(357,166)(1,010,569)(1,037,965)Less: other medical expense(32,646)(44,754)(82,613)(111,183)Gross profit$(24,536)$(39,796)$(18,916)$(19,379)

At-Risk Membership

At-risk membership represents the approximate number of Medicare members for whom we receive a fixed percentage of premium under capitation arrangements as of the end of the reporting period. We had 115,900 and 128,400 average at-risk members for the three months ended September 30, 2025 and 2024, respectively.

P3 Health Partners Inc. | Q3