PIII

• Operational Execution & Clinical Performance

  • P3's Care Enablement Model, centered on medical cost management, quality improvement, provider engagement, and coding accuracy, has delivered sustained performance gains. AI-enhanced point of care tools are deployed ahead of schedule, reaching over 65,000 lives, tracking to 110% of the original full-year 2026 deployment goal. Where the tool is active, providers close nearly 90% of care gaps at the point of care, with capture rates several points above the company-wide average, and the tool is currently used in roughly half of eligible visits.
  • Quality performance is tracking ahead of the internal glide path to achieve a 4-star rating on HEDIS and medication adherence measures. Alternative quality submissions are up 3x year-over-year, with total members impacted by quality submissions up nearly 20% from Q1 2026.
  • 87% of all patients were seen in H1 2026, 2 percentage points ahead of plan, including 99.5% of the highest-risk member population (well ahead of the 90% target glide path). Utilization management programs have driven a 17% year-to-date redirect rate from skilled nursing facilities to clinically appropriate home health care, reducing unnecessary costs while improving patient outcomes.
  • Adjusted MA medical cost trend for H1 2026 is 1.8% lower than the full-year 2025 baseline, a significant competitive advantage over peer sector trends of 5% to 7% YoY.

• Contract & Payer Partnership Progress

  • Over the past 18 months, P3 has restructured contracts with key payer partners to improve risk profile, funding mechanisms, risk sharing arrangements, delegation expansion, and alignment on medical cost accountability. The Q2 2026 favorable settlements reflect constructive resolution of legacy contractual matters and demonstrate strong trust and alignment between P3 and its payer partners.

• Growth Strategy

  • P3 follows a deliberate, disciplined approach to geographic expansion to reduce downside risk: it first builds clinical and operational infrastructure, validates performance, and only takes on full risk after that foundational work is complete. The new Nebraska market expansion is progressing on the expected trajectory, with P3 providing services in 2026-2027 and transitioning to full at-risk status in 2028. P3 continues to explore additional growth opportunities with existing and new partners in current and new geographies.

• Provider Engagement

  • The P3 Restore clinician support and coaching program has been expanded to four markets in H1 2026, with recent additions of asynchronous education and continuing medical education (CME) credits to improve access. Clinicians who complete the program report meaningful improvements in stress management, leadership confidence, and practice satisfaction, supporting network stability which is core to P3's operating model.

• P3 Health Partners has upwardly revised its full-year 2026 adjusted EBITDA guidance from prior levels to a new range of $80 million to $110 million, with a midpoint of $95 million. This upward revision reflects the $62 million in favorable contractual settlements and prior period development recognized in the first half of 2026, as well as improved expectations for underlying core business performance in the second half of the year.
• Management has tightened the guidance range as visibility into second half performance has improved, and remains confident in the trajectory of the business following two years of structural and operational changes that have delivered more durable, predictable earnings.
• Guidance incorporates the expected typical seasonal increase in medical expense utilization that occurs in the second half of the year for the healthcare industry, and this expected seasonal pressure is offset by ongoing in-year clinical and operational programs that continue to reduce medical costs. Approximately $15 million in additional underlying adjusted EBITDA is expected in the second half of 2026 to hit the guidance midpoint.

P3 Health Partners operates primarily in at-risk Medicare Advantage (MA) and management services arrangements, with consolidated financial performance for Q2 2026 as follows: Total Q2 2026 revenue was $386 million, up from $356 million in Q2 2025, for an 8.4% year-over-year increase. Medical claims expense for Q2 2026 was $269 million, which included $45 million in favorable payer settlements and prior year developments; after adjusting for these items, the adjusted medical loss ratio was 85.6%. Medical margin for Q2 2026 was $98 million (=$311 per member per month). Adjusted operating expense was $32 million, consistent with the cost structure established over the prior 18 months. Adjusted EBITDA for Q2 2026 was $54 million, compared to a $17 million adjusted EBITDA loss in Q2 2025. Excluding the $45 million in favorable one-time items, underlying adjusted EBITDA for Q2 2026 was $9 million. For the first half of 2026, total adjusted EBITDA was $80 million, compared to a $39 million loss in H1 2025; excluding $62 million in total favorable one-time settlements from H1, underlying H1 adjusted EBITDA was $18 million, marking the first time the core business has generated positive adjusted EBITDA. At period-end, total at-risk membership was 105,000 (down from 116,000 YoY due to deliberate exit of non-economic arrangements), with an additional 28,000 lives under management services arrangements, for 133,000 total lives under management.

No new material standalone risks were explicitly discussed by management during the call. The only risk-related discussion notes that forward-looking statements are inherently uncertain, and actual results may differ materially from expectations due to general business and industry risks. Additional information on risk factors is available in P3's periodic SEC filings. Management also acknowledges the expected seasonal pressure on medical expenses in the second half of the year, which is incorporated into the revised guidance.

Q: The analyst asks for specific details on the Q2 payer settlements: what they relate to, their impact on financial line items, and the specific size of the settlement in the quarter. / A: CFO Leif confirms total favorable prior period development and payer settlements in Q2 are $45 million, of which $41 million is the explicit payer settlement amount. The settlement only impacts medical claims expense and has no effect on reported revenue for the quarter. The settlements represent a constructive resolution of legacy contractual matters with payer partners.

Q: The analyst asks for insight into earnings seasonality and expected medical margin and EBITDA performance for the second half of 2026. / A: Leif explains that after $80 million reported adjusted EBITDA in H1 (of which $18 million is underlying core EBITDA and $62 million is settlements), hitting the guidance midpoint of $95 million for full-year 2026 implies ~$15 million of additional underlying EBITDA in H2. This outlook incorporates normal seasonal utilization pressure on medical costs in H2, which is offset by P3's ongoing clinical programs that reduced 2026 medical trend by 1.8% compared to 2025, along with the benefits of 2025 network curation and benefit adjustments from payer partners.

Q: The analyst asks about potential impacts of 2027 payer benefit plan changes and announced county market exits by some payers on P3's current membership. / A: CEO Aric notes that it is still early to have full visibility into 2027 benefit designs, and that P3 has seen the same announced county exit notifications as other providers. Management does not expect these exits to have a major impact on P3's overall membership, and a clearer picture of 2027 pricing and benefit design will be available after the Q3 2026 earnings call.

Q: The analyst asks for an update on point of care tool adoption, long-term adoption targets, provider feedback, and the current stage of rollout. / A: Management reports that adoption continues to accelerate, as providers increasingly recognize that the tool simplifies clinical workflows, rather than adding administrative burden. Rollout is nearly complete for Tier 1 providers, and expansion to Tier 2 providers (including Federally Qualified Health Centers) is already gaining traction. The tool not only identifies care gaps, it also helps providers clarify suspect diagnoses to improve patient care and links directly to P3's high-risk and care management teams to drive coordinated care.