P3 Health Partners (PIII) AI Stock Analysis

• Market Cap: $53.11M
• Dividend Yield: N/A
• Average Volume (3M): 11.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: 4.20%
• EPS Growth: -54.16%
• Country: US
• Employees: 360
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): -6.23
• Shares Outstanding: 3,268,218
• 10 Day Avg. Volume: 7,804
• 30 Day Avg. Volume: 11,011
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.08
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: -7.81
• Enterprise Value/Ebitda: -1.14
• 1Y Price Target: $8.00
• Price Target Upside: 0.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 46 Neutral
• Price Target: $7.00 ▼(-12.39% Downside)

P3 Health Partners faces significant financial challenges, with high leverage and negative profitability metrics being the most critical factors. While technical analysis shows a neutral trend, valuation concerns persist due to ongoing losses. The earnings call and corporate events provide some optimism with strategic improvements and financial support, but near-term risks remain substantial.

Positive Factors

Cost Management

Initiatives the management team is implementing, especially with its stronger focus on exiting unprofitable markets and reworking risk-based contracts, lead to a more favorable profit outlook and lower cash burn.

Market Performance

Investors should focus on the stable cost trend development in 2025, especially since three out of four markets are performing at breakeven or positively.

Operational Improvements

PIII highlighted that it is ahead of schedule with respect to the previously announced ~$130M of adjusted EBITDA improvements.

Negative Factors

Cash Position

The cash balance of ~$40.1M seems low to analysts when compared to the use of cash of ~($33.5M) in 1Q:25, and debt of ~$106M.

Earnings Impact

One difficult payer had a material impact to earnings in 1Q:25, resulting in a significant decline in medical margin.

Financial Guidance

Management lowered fiscal 2025 adjusted EBITDA guidance by $39 million at the midpoint.

P3 Health Partners Business Overview & Revenue Model

Company Description

P3 Health Partners Inc., a patient-centered and physician-led population health management company, provides superior care services in the United States. It operates clinics and wellness centers. The company is based in Henderson, Nevada.

How the Company Makes Money

P3 Health Partners makes money through a value-based care model, where it receives payments from health insurers and other payers for managing the health of patient populations. The company enters into contracts with payers to provide comprehensive care management services, receiving a portion of the savings achieved by reducing unnecessary healthcare costs such as hospitalizations and emergency room visits. Revenue streams include shared savings agreements, capitation payments, and care coordination fees. Significant partnerships with healthcare providers and insurance companies play a crucial role in its earnings by ensuring a steady patient flow and optimizing care delivery.

P3 Health Partners Financial Statement Overview

Summary

P3 Health Partners is experiencing revenue growth but is struggling with profitability and financial stability. High leverage and negative margins pose significant risks, and the company needs to focus on improving operational efficiency and reducing debt to strengthen its financial position.

Income Statement

P3 Health Partners has shown a notable revenue growth from the previous year, with a 18.48% increase in 2024. Despite this, the company struggles with profitability, evidenced by negative gross profit margins and a significant net loss. EBIT and EBITDA margins are also negative, indicating challenges in covering operational costs and interest expenses.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio standing at 1.01, indicating potential risk in financial stability. The equity ratio is low at 9.69%, suggesting limited buffer against liabilities. Return on equity is highly negative, reflecting the net losses impacting shareholder value.

Cash Flow

The cash flow statement reveals negative free cash flow, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting profits into cash. However, there's a positive cash inflow from financing activities which may provide temporary relief.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.49B	1.50B	1.27B	1.05B	491.06B	485.54M
Gross Profit	-27.75M	-144.97M	31.64M	-95.01M	490.40B	243.70K
EBITDA	-189.42M	-197.76M	-81.07M	-1.46B	-184.61M	-28.08M
Net Income	-137.63M	-135.85M	-57.77M	-270.13M	-10.08M	-31.41M
Balance Sheet
Total Assets	783.87M	783.42M	860.97M	876.57M	2.36B	99.90M
Cash, Cash Equivalents and Short-Term Investments	40.08M	38.82M	36.32M	17.54M	140.48M	36.26M
Total Debt	182.90M	166.16M	121.94M	105.94M	89.92M	49.11M
Total Liabilities	662.79M	633.89M	427.31M	353.91M	299.94M	145.96M
Stockholders Equity	63.25M	75.94M	142.13M	5.85M	273.55M	-27.87M
Cash Flow
Free Cash Flow	-123.56M	-110.13M	-77.86M	-128.25M	-69.88M	-27.52M
Operating Cash Flow	-123.56M	-110.13M	-76.03M	-126.02M	-66.47M	-24.60M
Investing Cash Flow	14.53M	14.53M	-1.83M	-7.73M	-56.07M	-3.17M
Financing Cash Flow	118.03M	98.77M	100.33M	11.38M	223.47M	34.76M

P3 Health Partners Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PIII, the sentiment is Positive. The current price of 7.99 is above the 20-day moving average (MA) of 7.10, above the 50-day MA of 6.73, and below the 200-day MA of 9.00, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 65.81 is Neutral, neither overbought nor oversold. The STOCH value of 74.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PIII.

P3 Health Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOI	55 Neutral	$326.33M	―	-535.24%	―	17.53%	14.49%
Sector *	51 Neutral	$7.83B	-0.15	-40.10%	2.29%	21.46%	-2.01%
CYH	51 Neutral	$381.12M	―	39.18%	―	0.80%	-95.01%
AIRS	50 Neutral	$397.10M	―	-16.47%	―	-14.46%	-315.81%
INNV	47 Neutral	$523.85M	―	-12.03%	―	12.19%	-1.59%
PIII	46 Neutral	$53.11M	―	-138.17%	―	4.20%	-54.16%
MODV	41 Neutral	$8.29M	―	-951.52%	―	-0.70%	-2.38%

P3 Health Partners Corporate Events

P3 Health Partners Appoints New Board Director

On July 2, 2025, Dr. Sherif Abdou resigned from the Board of Directors of P3 Health Partners Inc., following the conclusion of his transition services agreement on April 30, 2025. Subsequently, the Board appointed Dr. Aric Coffman as a Class I director, with his term set to expire in 2028. Dr. Coffman, who is also the Chief Executive Officer of the company, does not qualify as an independent director and will not serve on any Board committees. He will not receive additional compensation for his role on the Board.

P3 Health Partners’ Shareholders Approve Key Proposals

On June 4, 2025, P3 Health Partners Inc. held its 2025 Annual Meeting of Stockholders, where shareholders voted on four proposals. The election of three Class I directors, the ratification of BDO USA, P.C. as the independent auditor, the approval of executive compensation, and the issuance of additional shares were all approved, indicating strong shareholder support for the company’s strategic decisions.

P3 Health Partners Secures $70M Financing Deal

On May 29, 2025, P3 Health Group, a subsidiary of P3 Health Partners Inc., entered into a financing transaction with VBC Growth SPV 5, LLC. This transaction involves an unsecured promissory note and warrants to purchase shares of the company’s Class A Common Stock. The promissory note, approved by independent directors, allows P3 LLC to access up to $70 million in funding, which will be used to support ongoing working capital needs. The agreement includes specific terms for interest payments and prepayment options, with a maturity date set for August 13, 2028. Additionally, a warrant agreement was established, allowing VBC 5 to purchase shares contingent upon stockholder approval, with the warrants expiring in 2032. This financing arrangement is expected to bolster P3 Health Partners’ financial position and support its operational objectives.