P3 Health Partners Inc. (NASDAQ:PIII) shares fell more than 6% in after-hours trading on Thursday after the company issued guidance that pointed to an uncertain path to profitability, even though its fourth-quarter revenue came in line with expectations.
The physician-led population health management group reported fourth-quarter revenue of $384.8 million, representing a 4% increase from $370.7 million in the same period a year earlier.
However, the company posted a net loss per share of -$23.02, compared with -$18.02 in the prior-year quarter. Its medical margin also turned negative, recording a loss of $28.7 million, or -$83 per member per month, compared with a positive $7.3 million, or $19 per member per month, in the fourth quarter of 2024.
Adjusted EBITDA loss widened to $76.1 million, up from $67.6 million during the same period last year.
Looking ahead to fiscal 2026, P3 projected revenue in the range of $1.50 billion to $1.70 billion. The midpoint of $1.60 billion came in slightly below analysts’ consensus estimate of $1.65 billion.
The company forecast adjusted EBITDA between a loss of $20 million and a profit of $40 million, with a midpoint of $10 million. That outlook reflects an expected year-over-year improvement of roughly $170 million. Medical margin is anticipated to reach between $160 million and $200 million.
“2025 was a year of meaningful progress in repositioning the business. We strengthened our contract economics, improved provider alignment, and built a more disciplined operating foundation,” said Aric Coffman, CEO of P3.
For the full year 2025, P3 reported revenue of $1.46 billion, compared with $1.50 billion in 2024. At-risk membership declined about 8% year over year to 116,000 members, a drop the company attributed to deliberate network realignment. The company recorded a net loss of $323.1 million for the year, compared with $310.4 million in the previous year.