Company: PIII
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001832511-25-000013
Chunk: 120

Company: P3 Health Partners Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 120
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 financial measure to evaluate our business.

The following table sets forth a reconciliation of our net loss, the most directly comparable GAAP metric, to Adjusted EBITDA loss:

Three Months Ended June 30,Six Months Ended June 30,2025202420252024(in thousands)Net loss$(43,665)$(28,774)$(87,911)$(78,380)Interest expense, net10,145 5,436 18,870 9,692 Depreciation and amortization21,083 21,693 42,135 43,232 Income tax provision1,981 968 3,054 3,040 Mark-to-market of stock warrants(2,002)(8,673)(5,324)(8,889)Premium deficiency reserve(5,967)(3,397)(12,929)(2,397)Equity-based compensation1,463 1,624 3,271 3,073 Other(1)(148)2,276 (466)2,012 Adjusted EBITDA loss$(17,110)$(8,847)$(39,300)$(28,617)

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(1)Other during the three and six months ended June 30, 2025 consisted of (i) interest income partially offset by (ii) severance expense in connection with reorganization of workforce and (iii) legal settlements and valuation allowance on our notes receivable. Other during the three and six months ended June 30, 2024 consisted of (i) interest income partially offset by (ii) severance and related expense in connection with our chief executive officer transition and (iii) legal settlements and valuation allowance on our notes receivable. 

Medical Margin

Medical margin is a non-GAAP financial metric. We present medical margin because we believe it helps investors understand underlying trends in our business and facilitates an understanding of our operating performance from period to period by facilitating a comparison of our recurring core business operating results.

Medical margin represents the amount earned from capitated revenue after medical claims expenses are deducted. Medical claims expenses represent costs incurred for medical services provided to our members. As our platform grows and matures over time, we expect medical margin to increase in absolute dollars; however, medical margin PMPM may vary as the percentage of new members brought onto our platform fluctuates. New membership added to the platform is typically dilutive to medical margin PMPM.

Medical margin should not be considered in isolation or as