Company: PIII
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001832511-25-000025
Chunk: 123

Company: P3 Health Partners Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 123
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DA include capital expenditures, interest payments, debt principal repayments, and other expenses defined above, which can be significant. As a result, Adjusted EBITDA should not be considered as a measure of our liquidity.

Because of these limitations, Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA on a supplemental basis. You should review the reconciliation of net loss to Adjusted EBITDA set forth below and not rely on any single 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 September 30,Nine Months Ended September 30,2025202420252024(in thousands)Net loss$(69,461)$(102,850)$(157,372)$(181,230)Interest expense, net20,527 5,647 39,397 15,339 Depreciation and amortization21,033 21,673 63,168 64,905 Income tax provision (benefit)11 (3,605)3,065 (565)Mark-to-market of stock warrants2,540 (5,737)(2,784)(14,626)Premium deficiency reserve(23,736)18,168 (36,665)15,771 Equity-based compensation1,211 1,958 4,482 5,031 Other(1)1,964 (6,254)1,498 (4,242)Adjusted EBITDA loss$(45,911)$(71,000)$(85,211)$(99,617)

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(1)Other during the three and nine months ended September 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 nine months ended September 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