P3 Health Partners Inc.

Good day and welcome to the P3 Health fourth quarter 2025 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Gabby Gable of Investor Relations. Please go ahead.

Thank you, Operator, and thank you for joining us today. Before we proceed with the call, I would like to remind everyone that certain statements made during this call are forward-looking statements under the U.S. federal securities laws, including statements regarding our financial outlook and long-term target. These forward-looking statements are only predictions and are based largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. These statements are subject to risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations. Additional information concerning factors that could cause actual results to differ from statements made on this call is contained in our periodic reports filed with the SEC. The forward-looking statements made during this call speak only as of the date hereof, and the company undertakes no obligation to update or revise these forward-looking statements. We will refer to certain non-GAAP financial measures on this call, including adjusted operating expense, adjusted EBITDA, adjusted EBITDA per member per month, normalized adjusted EBITDA, medical margin, medical margin per member per month, and cash flow. These non-GAAP financial measures are in addition to and not a substitute for or superior to the measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of those non-GAAP financial measures. For example, other companies may calculate similarly titled non-GAAP financial measures differently. Please refer to the appendix of our earnings release for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures. Information presented on this call is contained in the press release that we issued today and in our SEC filings, which may be accessed from the investors page of the P3 Health Partners website. I will now turn the call over to Eric Kaufman, CEO of P3 Health Partners.

Thank you, Gabby. Good afternoon and thank you for joining us today to hear about our results and future direction, including significant smart growth into a new geography, which we will detail in a bit. We are excited about 2026 and beyond as we execute on our plan. I want to start by framing the financial trajectory of the business as we move into 2026 before Amir and Leif provide insight into our 2025 performance. For 2026, we are guiding to an adjusted EBITDA at a midpoint of $10 million, representing a significant improvement from our 2025 adjusted EBITDA loss of $161 million. We have clear visibility into that improvement, supported by actions already underway. Over the past year, we have identified $170 million of structural and operational improvement opportunities that bridge this performance. These opportunities fall into three primary areas. Number one, $125 million or 75% from contracting and revenue-related actions, which is already being realized in our 2026 financials. Number two, $35 million or 20% from operational execution around MedEx initiatives and network contracting. And number three, $10 million or 5% from payer benefit design collaboration and membership profiles. Taken together, these provide a clear path from our 2025 results to our 2026 outlook. These changes reflect fundamental improvements in how we contract, operate, and partner with both payers and providers. As a result, we enter 2026 with a high degree of confidence in our guidance. Stepping back, 2025 was a year of strengthening the foundation of the business. We focused on improving our contracts, increasing provider alignment and accountability, and advancing our clinical and quality performance. We secured meaningful improvements across key payer relationships and continued refining our network to concentrate on providers who are aligned with value-based care. At the same time, we deepened engagement across our provider base with more than half of our patients now served by a Tier 1 provider group operating with higher levels of clinical integration and accountability. We also made meaningful progress on quality, achieving four-star status across 70% of our priority Medicare Advantage plans, reinforcing our value proposition with payer partners and supporting future growth. The work completed during the year established the foundation for the improvement we expect to realize in 2026. Consistent with our focus on smart growth, We recently announced a partnership that expands our presence into a new Medicare Advantage geography with 29,000 new members that are management, representing 25 percent in-year growth. With these new lives, it will add roughly $27 million of revenue in 2026. Combined with our existing at-risk membership, this brings total lives under management in 2026 to approximately 140,000 members. Additionally, this partnership includes a multi-year glide path to risk, which at current membership levels equates to more than $300 million in revenue upon moving to full risk. The glide path ensures that we can establish the core foundations for operational execution prior to assuming full risk. This partnership reflects how we think about growth entering new geographies through a phased glide path. Further, we are taking on the delegated functions early in the glide path and well ahead of when we take risk. This approach reduces volatility, supports financial performance during the rent period, and creates a structured pathway to long-term risk alignment. What I want to leave you with is this. The structural work we completed in 2025, improved contracts, tighter accountability, disciplined cost structure is already embedded in the business and supports the improvement we expect to see in 2026. With that, I will turn the call over to Amir to discuss our clinical performance.