P3 Health Partners Inc.

Good morning and welcome to the P3 Health Partners first quarter 2026 earnings conference call. All participants will be in the listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one on your telephone keypad. To withdraw your question, you may press star and then two. Please note this event is being recorded. I would now like to turn the conference over to Gabby Gabel. Thank you, and over to you.

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 a 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 these 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 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.

Thanks, Abby. Good afternoon, and thank you for joining us today to discuss our first quarter results. Q1 represents an inflection point for the business and reflects the continued execution of the two-year framework we have discussed over the past several quarters, the results of which delivered $26 million of adjusted EBITDA in Q1, exceeding internal expectations. The strength of the first quarter combined with the momentum we are carrying into the rest of the year provide us confidence to raise our full year 2026 outlook. It has been 24 months since I began leading P3, and we have fundamentally repositioned the organization through contract restructuring, market optimization, operational redesign, and tighter alignment between our clinical and financial infrastructure. The financial results of this quarter demonstrate that these structural changes are now translating into measurable economic performance. Importantly, the improvements we are seeing here are not being driven by temporary factors. It is the result of deliberate operational and strategic actions that are now embedded within the business model. The underlying business generated significant positive earnings during the quarter and our operating fundamentals continue to mature. I would like to acknowledge the hard work and dedication from our teams that made this happen day in and day out. They deepened the relationships with our clinical and payer partners to unlock the potential in the business, buttressed by the improvement in the macro environment. From here, our focus is straightforward. Continue expanding medical margin, continue improving contract economics, continuously improve operating execution, and scale the platform and markets and partnerships where our model performs best. Three primary drivers contributed to the improved underlying performance this quarter. First is the improvement in our payer contract structures. Over the past 18 months, we have significantly redesigned how risk funding and cost accountability are structured across our payer and network relationships. This includes improved alignment around medical cost accountability, enhanced funding mechanisms, revised risk sharing structures, greater operational coordination with our payer partners, and a path to delegation in our go-forward contracts. These are not temporary tailwinds. They represent a structural repositioning of the economic framework of the business. We are increasingly seeing payers recognize the value our model creates when operational accountability and economic incentives are fully aligned. As a result, MA funding rates improved approximately 15% year over year, delegated functions expanded across 63% of membership in 2026, and contract alignment improved meaningfully across several of our largest relationships. These changes position the business for more durable and sustainable profitability going forward. Second is operational execution. Over the last two years, we have focused heavily on building a disciplined operating model centered around medical cost management, quality execution, provider engagement, and risk accuracy. We are now seeing those efforts translate into improved financial performance. Across the organization, burden of illness capture and documentation accuracy continue to improve. STARS performance is tracking ahead of our internal glide path. Tier 1 provider concentration continues to increase. Care management engagement amongst our highest acuity populations continues to expand. And operational workflows across utilization management and payment integrity are increasingly effective across markets. Q1 MA medical expense trend was roughly flat. compared to full year 2025 medical expense trend. At a time when payers and peer organizations have generally guided to a 7% trend or higher, our trend reflects the compounding impact of Tier 1 provider concentration, delegated utilization management, discipline payment integrity, and we expect it to remain a durable point of differentiation. This isn't a one quarter result evidenced by our full year 2025 MedEx trend, which was under 2% across both Medicare Advantage and ACO populations. At the same time, our operating expense structure remains controlled. We continue to invest selectively in frontline clinical capabilities, provider engagement, and data infrastructure while maintaining focus on overall cost efficiency. The third item is the improving macro environment. The 2026 CMS benchmark update improved the underlying economics of the Medicare Advantage market and reinforced the sustainability of value-based care models that can effectively manage quality and medical cost performance. In addition, benefit design rationalization across the industry is creating more sustainable utilization dynamics across MA populations. We believe the current environment increasingly favors organizations that have the following, strong provider alignment, local market operating capabilities, effective medical cost management, and a scalable clinical infrastructure. P3 is well positioned within that group. Looking forward, we believe Medicare Advantage Environment continues to move in a constructive direction. For organizations like P3 that effectively manage medical costs and execute on quality, this environment increasingly supports long-term margin expansion opportunities. The industry has moved into a period where operational execution and the ability to manage that cost of care effectively is what matters, not simply scale. As we look toward the rest of 26 and 2027, the actions we have taken over the last two years position us to compete and win in that environment. Our payer relationships remain central to our success. One of the clearest lessons we have learned is that our model performs best when operational accountability and economic accountability are aligned through delegation. When we control key delegated functions, particularly claims payment, utilization management, and care management, we consistently produce stronger medical cost performance better quality outcomes, improved member engagement, and more favorable economic outcomes for both P3 and our payer partners. As a result, we will prioritize markets and payer relationships with a clear pathway toward deeper delegation, stronger economic alignment, density, and long-term partnership stability. The depth of operational control this model affords us Particularly, the integration of claims payment utilization management and care management within our platform is a structural differentiator within the value-based care landscape and one that is difficult to replicate. This level of delegation simplifies our data sharing and meaningfully improves our cash flows to help us realize surplus more quickly. This disciplined approach materially improves long-term margin quality, predictability, and shareholder value creation. Our Nebraska partnership, which added an additional 28,600 lives under management, reflects exactly this type of disciplined expansion strategy. The implementation remains on track, operational readiness milestones continue to progress as planned, and the partnership reinforces our ability to enter new geographies through structured delegation-oriented growth pathways. Over time, partnerships structured in this manner will become meaningful contributors to long-term earnings growth and market expansion. These partnerships solve for one of the major issues around growth in value-based care, establishing cash flow to the business and contractual elements that are mutually beneficial for P3 and the payer partner. Overall, our first quarter was strong. We have three quarters ahead of us and our focus remains on sustaining execution. The results reinforce our confidence that the business has moved into a phase of improving operational consistency and earnings quality. The core economic levers that drive the business are increasingly within our control. And while our work is never done, the economic framework for 2026 is solid within the business. we remain focused on executing with discipline against that opportunity. With that, I'll turn the call over to Amir to discuss our clinical performance.