P3 Health Partners Inc

P3 Health Partners reported a second-quarter profit and raised its full-year 2026 adjusted EBITDA guidance. Revenue rose 9% to $386.4 million, and the company posted net income of $15.7 million, reversing a $43.7 million loss a year earlier. Adjusted EBITDA reached $54.4 million, compared with a loss of $17.1 million in the prior-year quarter. The company now expects full-year adjusted EBITDA between $80 million and $110 million, up from a previous outlook that implied a significant improvement over the $161.3 million loss in fiscal 2025. Total revenue is projected at $1.5 billion to $1.6 billion, with medical margin forecast at $260 million to $300 million.

Simply Wall St has raised its internal fair value reference for P3 Health Partners to $14.00 from $10.25, following the company's first-quarter 2026 adjusted EBITDA of $26 million and an increased full-year EBITDA guidance midpoint of about $30 million. TD Cowen lifted its price target to $14 from $3, while Lake Street raised its target to $14 from $4, citing a shored-up balance sheet after debt was converted to equity. Lake Street cautioned that it may take a couple more quarters for sentiment to fully shift, which could limit near-term valuation re-rating. The fair value update also reflects revised assumptions, including a revenue growth rate lowered to 6.19% from 11.10% and a net profit margin raised to 6.10% from 5.17%.