P3 Health Partners Inc.

Good day and welcome to the P3 Health Partners second quarter 2026 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal conference specialists 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 1 on your touchtone phone. And to withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Mr. William Hoover 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 Law, 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 a periodic report filed with the SEC. The forward-looking statements made during this call speak only as the date and hereof, and the company undertakes no obligation to update or revise these forward-looking statements. We refer to these 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 our reconciliation of these non-GAAP financial measures to the most direct 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 investor page of the P3 Health Partners website. I will now turn the call over to Aric Coffman, CEO of P3 Health Partners.

Good afternoon and thank you for joining us today to discuss our second quarter results. Q2 represents a continuation of the positive momentum we have built over the last two years and reflects sustained execution against the plan we shared with you at the outset of my tenure. None of this happens without the work of our teams across the country. Their focus, discipline, and their day-to-day execution are what convert strategy into results, and I want to thank them for their dedication they bring to serving our patients, our providers, and payer partners. We delivered $54 million of adjusted EBITDA in the second quarter, bringing our first half total adjusted EBITDA to $80 million, building on the trajectory we established in Q1. Given the strong performance and our confidence in the underlying business, we are raising our full year 2026 outlook. It has been just over two years since I began leading P3, and the results this quarter reflect how much the structural and operational changes we have made across our contracts, our markets, and our operating model continue to compound. We remain focused on medical cost improvement, quality and burden of illness performance, discipline growth, and continued operational improvements through people, process, and technology. There are three things to highlight about P3 performance through the first half of 2026. First is operational execution. As we have discussed previously, our operating model is centered around medical cost management, quality execution, provider engagement, and coding accuracy. Across the organization, we are expanding our point of care tools ahead of schedule, now reaching greater than 65,000 lives across our portfolio, allowing more accurate burden of illness capture and quality gap closures. These AI-enhanced tools reduce the administrative burden for the clinicians as we are meeting our provider partners where they are to drive adoption and daily practice. Our quality performance is tracking ahead of our internal glide path towards four stars on HEDIS and medication adherence measures. Our impact across utilization management and payment integrity are tracking at or above plan, and we will be expanding these programs as part of our contractual reset with payers. Our clinical and care management programs continue to expand with a focus on high risk, rising risk patients and transitions of care. The impact from our operating model can be seen in our Q2MA medical expense trend and quality trajectory. Medical cost trend across our MA population to the first half of 2026 was 1.8% lower than full year 2025, which Leif will cover in more detail. This is a significant and sustained differentiator in the sector when compared to peers running 5% to 7% year over year. Quality remains one of the most important levers in Medicare Advantage, both for the patients we serve and for the strength of our payer relationships. Strong quality performance is not only linked with better patient outcomes. It directly supports better economic terms and deeper alignment with our payer partners and is an area where P3 continues to differentiate. Quality is tracking well for the first half of the year, where we are ahead of GlyPAD to get to four star on HEDIS and medication adherence measures. We have also improved our process around alternative submissions, driving three times the total submissions at this point compared to the prior year, with total members impacted by quality submissions up close to 20% from Q1. This progress reflects the scale and effectiveness of our improved processes. Second is our payer partnerships and our contract structure design work we began 18 months ago. We focused on redesigning and enhancing our risk profile, funding, and cost accountability with our key payer partners, including enhanced funding mechanisms, revising risk sharing arrangements, delegation expansion, and improving alignment around medical cost accountability. As you look at the composition of this quarter's results, a portion of our Q2 performance reflects one-time non-recurring items across multiple payer contracts. These settlements are more than a financial event. They reflect the trust our payer partners continue to place in P3 and our shared commitment to taking care of our patients and provider partners. Third is growth. Our engagement in Nebraska that we shared with you earlier this year continues to progress positively. We are executing on our expected trajectory and look forward to sharing more as it matures. We favor a deliberate glide path on geographic expansion. Understand the population, build the clinical and operational infrastructure, and validate performance before taking on full risk. This sequencing reduces downside exposure and positions us to enter full risk in a disciplined way. In addition, with our existing partners, we continue to explore growth opportunities in both current and new geographies. Overall, our second quarter was strong and it reflects the compounding benefit of the work we have done over the past two years. We have two quarters remaining in 2026 and our attention remains on sustaining that execution. These results reinforce our confidence that the business has moved into a phase of durable, more predictable earnings. And that trajectory is what gives us the confidence to raise our outlook for the year. The core economic levers that drive the business, our contract structure, our operating model, and our clinical execution are increasingly within our control. Our work is never finished, but the framework for 2026 is solid. and we remain focused on executing with the same discipline that got us here. Our success is predicated on the engagement of our clinician partners. I'm proud of the work we have established with the P3 Restore program to impact clinician engagement, improve practice sustainability and bring solutions to help them succeed. To speak more about that and to discuss our clinical performance, I'll turn the call over to Amir.