8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________________________________

FORM 8-K

__________________________________________

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): November 9, 2022

__________________________________________

Cano Health, Inc.

(Exact name of registrant as specified in its charter)

__________________________________________

Commission File Number: 001-39289

Delaware

(State or other jurisdiction of incorporation or organization)

9725 NW 117th Avenue, Miami, FL

(Address of principal executive offices)

98-1524224

(IRS Employer Identification No.)

33178

(Zip Code)

(855) 226-6633

(Registrant's telephone number, including area code)

________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock, $0.0001 par value per share	CANO	The New York Stock Exchange
Warrants to purchase one share of Class A common stock, each at an exercise price of $11.50 per share	CANO/WS	The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company     ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On November 9, 2022, Cano Health, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 30, 2022. A copy of that press release as well as the Cano Health 3Q 2022 Financial Supplement are available on the Company’s website and are attached hereto as Exhibits 99.1 and 99.2 and incorporated herein by reference. This Item 2.02 and the attached Exhibits 99.1 and 99.2 are being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.

The Company will host a conference call and audio webcast today at 5:00 p.m. Eastern Time, during which management will discuss the third quarter results and provide commentary on business performance. A question and answer session with analysts and investors will follow the prepared remarks.

The conference call can be accessed by dialing 888-660-6359 (domestic) or 929-203-0867 (international).

A live audio webcast of the conference call will be available through the “Events & Presentations” section of the Investor page of the Company’s website, www.canohealth.com. A replay of the webcast will be archived on the Company’s website for 30 days following the call.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:

Exhibit Number	Description
99.1	Press release dated November 9, 2022
99.2	Cano Health 3Q 2022 Financial Supplement
104	Cover Page Interactive Data file (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CANO HEALTH, INC.

Date: November 9, 2022	By:	/s/ Brian D. Koppy
		Brian D. Koppy
		Chief Financial Officer

EX-99.1

Exhibit 99.1

Cano Health Announces Financial Results for the Third Quarter 2022

MIAMI, November 9, 2022 /PRNewswire/– Cano Health, Inc. (“Cano Health” or the “Company”) (NYSE: CANO), a leading value-based primary care provider and population health company, today announced financial results for the third quarter ended September 30, 2022.

Third Quarter Financial Results

•Total membership of 294,596, including 168,346 Medicare capitated members, an increase of 40% year-over-year for both

•Total revenue of $665.0 million, an increase of 33% year-over-year

•Net loss of $(112.0) million, unfavorably impacted by a $65.7 million fair value adjustment of warrant liabilities

•Adjusted EBITDA1 of $42.5 million, compared to $13.6 million in the third quarter of 2021, an increase of 211% year over year

The Company continues to demonstrate financial and operational improvement year-over-year, with higher revenue, an improved medical cost ratio2, or MCR, and a higher Adjusted EBITDA margin.Total third-party medical costs per member per month, or PMPM, were better than expected in the third quarter, however, capitated revenue PMPM was approximately (5%) lower than the prior year and approximately (9%) lower than the second quarter of 2022, primarily due to a lower-than-expected capitated rates from new patients.This resulted in a higher medical cost ratio in the quarter than expected.The MCR was 78.2% in the third quarter, compared to 80.5% in the prior year, primarily driven by lower third-party medical costs PMPM, which more than offset the decline in capitated revenue PMPM.

“Cano Health delivered improved profitability while achieving steady organic growth,” said Dr. Marlow Hernandez, Chairman and Chief Executive Officer at Cano Health.“While financial results were below our expectations due to lower revenue from new membership growth, existing membership performed in line with expectations.As these new members integrate into our care platform, we expect they will perform similarly to existing members in future periods.In response to our rapid growth and the higher cost of capital in the current economic environment, we are optimizing key areas of the business to leverage existing assets and prioritize cash flow.We are confident Cano Health’s operating model will continue to deliver better health outcomes for our patients and sustainable long-term value creation for our shareholders.”

(1) Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure is provided in the Reconciliation of Non-GAAP Adjusted EBITDA table included in this press release. An explanation of this measure and how it is calculated is also included under the heading “Non-GAAP Financial Measures.”

(2) Medical Claims Expense Ratio (MCR) is calculated as third-party medical expense divided by capitated revenue

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Guidance

The Company is updating its guidance for full year 2022 provided on August 9, 2022.The updated guidance for full year 2022 is as follows:

•Membership in the range of 300,000 to 305,000, unchanged from the prior guidance range

•Total revenue in the range of $2.70 billion to $2.75 billion, a decrease from the prior guidance range of $2.85 billion to $2.90 billion, primarily driven by lower-than-expected capitated revenue PMPM from new members

•Total medical cost ratio (MCR) in the range of 79.5% to 80.5%, an increase from the prior range of 78.0% to 79.0%, driven by the aforementioned lower-than-expected capitated revenue PMPM from new members

•The second half of 2022 is still expected to be lower than total MCR in the first half of 2022, primarily driven by normal seasonality in medical costs and cost recoveries

•Adjusted EBITDA of approximately $150 million to $160 million, a decrease from the prior guidance of approximately $200 million

•The Company added eight medical centers in the quarter, bringing total medical centers to 151, as of September 30, 2022, and 162 as of November 9, 2022; the Company expects to operate 170 by the end of 2022, a decrease from the prior guidance of 184 to 189, consistent with the focus on cash flow improvement

As of November 4, 2022, the Company had approximately 245 million shares of Class A common stock and 250 million shares of Class B common stock issued and outstanding. Total share count for the purposes of calculating market capitalization was approximately 494 million.

Conference Call Information

Cano Health will host a conference call today at 5:00 PM ET to review the Company’s business and financial results for the third quarter ended September 30, 2022.

To access the live call and webcast, please dial (888) 660-6359 for U.S. participants, or +1 (929) 203-0867 for international participants, and reference the Cano Health Third Quarter 2022 Earnings Conference Call and Conference ID 8371699. The conference call will also be webcast live in the “Events & Presentations” section of the Investor page of the Cano Health website.

A replay will be available in the “Events & Presentations” section of the Cano Health website for on-demand listening shortly after the completion of the call and will be available for 30 days.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to future events and involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and could materially affect actual results, performance or achievements. Such forward-looking statement include, without limitation, our anticipated results of operations, including our financial guidance for the 2022 fiscal year, our business strategies, our projected costs, prospects and plans, and other aspects of our operations or

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operating results. These forward-looking statements generally can be identified by phrases such as “will,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on our results of operations and financial condition. Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in forward-looking statements include, among others, changes in market or industry conditions, regulatory environment, competitive conditions, and receptivity to our services; changes in our strategy, future operations, prospects and plans; developments and uncertainties related to the Direct Contracting Entity (“DCE”) program; adverse effects on the Company’s business as a result of the restatement of our previously issued financial statements; our ability to realize expected financial results, including with respect to patient membership, total revenue and earnings; our ability to predict and control our medical cost ratio; our ability to grow market share in existing markets or enter into new markets and continue our growth; our ability to integrate our acquisitions and achieve desired synergies; our ability to maintain our relationships with health plans and other key payors; the impact of COVID-19 on our business and results of operations; our future capital requirements and sources and uses of cash, including funds to satisfy our liquidity needs; and our ability to recruit and retain qualified team members and independent physicians. For a detailed discussion of the risks and uncertainties that could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, please refer to our filings with the Securities and Exchange Commission (the “SEC”). All information provided in this press release is as of the date hereof, and we undertake no duty to update or revise this information unless required by law.

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures as defined by the SEC rules. EBITDA and Adjusted EBITDA have not been prepared in accordance with United States generally accepted accounting principles (“GAAP”). EBITDA is defined as net income (loss) before interest, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA, adjusted to add back the effect of certain expenses, such as stock-based compensation expense, de novo losses (consisting of costs associated with the ramp up of new medical centers and losses incurred for the twelve months after the opening of a new facility), acquisition transaction costs (consisting of transaction costs and corporate development payroll costs), restructuring and other charges, fair value adjustments in contingent consideration, loss on extinguishment of debt, and changes in fair value of warrant liabilities. We believe these non-GAAP financial measures provide an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other similar companies. We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP.

These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense, income and other items are excluded or included in determining these non-GAAP financial measures. In addition, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. A reconciliation of those measures to their most directly comparable GAAP measures is available under the heading “Reconciliation of Non-GAAP Measures.”

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The Company has not reconciled its expectations as to non-GAAP measures in future periods to their most directly comparable GAAP measure because certain costs and expenses are outside of its control or cannot be reasonably predicted. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to the Company’s results computed in accordance with GAAP.

About Cano Health 

Cano Health (NYSE: CANO) is a high-touch, technology-powered healthcare company delivering personalized, value-based primary care to more than 290,000 members. With its headquarters in Miami, Florida, Cano Health is transforming healthcare by delivering primary care that measurably improves the health, wellness, and quality of life of its patients and the communities it serves. Founded in 2009, Cano Health has more than 4,500 employees, and operates primary care medical centers and supports affiliated providers in nine states and Puerto Rico. For more information, visit canohealth.com or investors.canohealth.com.

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Investor Relations Contact:

Jeffrey Geyer

Cano Health, Inc.

(786) 206-1930

investors@canohealth.com

Media Relations Contact:

Georgi Morales Pipkin

Cano Health, Inc.

(786) 206-3322

mediarelations@canohealth.com

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

UNAUDITED

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except share and per share data)	2022		2021		2022		2021
Revenue:
Capitated revenue	$	625,895	$	473,763	$	1,955,739	$	1,064,604
Fee-for-service and other revenue	39,133		25,168		102,804		52,510
Total revenue	665,028		498,931		2,058,543		1,117,114
Operating expenses:
Third-party medical costs	489,565		381,316		1,566,661		868,177
Direct patient expense	63,867		50,368		177,190		120,212
Selling, general and administrative expenses	111,765		76,618		314,617		158,786
Depreciation and amortization expense	25,343		16,955		64,215		30,746
Transaction costs and other	5,033		11,206		19,616		36,274
Change in fair value of contingent consideration	900		(3,940)		(9,525)		(4,152)
Total operating expenses	696,473		532,523		2,132,774		1,210,043
Income (loss) from operations	(31,445)		(33,592)		(74,231)		(92,929)
Other income and expense:
Interest expense	(16,451)		(16,023)		(42,868)		(36,363)
Interest income	4		1		7		4
Loss on extinguishment of debt	—		—		(1,428)		(13,225)
Change in fair value of warrant liabilities	(65,721)		(14,650)		(8,383)		24,565
Other income (expense)	354		(29)		884		(54)
Total other income (expense)	(81,814)		(30,701)		(51,788)		(25,073)
Net income (loss) before income tax expense	(113,259)		(64,293)		(126,019)		(118,002)
Income tax expense (benefit)	(1,248)		547		641		(762)
Net income (loss)	$	(112,011)	$	(64,840)	$	(126,660)	$	(117,240)
Net income (loss) attributable to non-controlling interests	(57,783)		(41,602)		(67,759)		(98,559)
Net income (loss) attributable to Class A common stockholders	$	(54,228)	$	(23,238)	$	(58,901)	$	(18,681)
Net income (loss) per share attributable to Class A common stockholders, basic	$	(0.23)	$	(0.14)	$	(0.28)	$	(0.11)
Net income (loss) per share attributable to Class A common stockholders, diluted	$	(0.23)	$	(0.14)	$	(0.28)	$	(0.16)
Weighted-average shares used in computation of earnings per share:
Basic	232,314,170		170,871,429		211,408,974		168,100,210
Diluted	232,314,170		477,255,983		211,408,974		169,312,258

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CONDENSED CONSOLIDATED BALANCE SHEETS

UNAUDITED

	As of,
(in thousands)	September 30, 2022		December 31, 2021
Assets
Current assets:
Cash, cash equivalents and restricted cash	$	24,097	$	163,170
Accounts receivable, net of unpaid service provider costs	202,037		133,433
Prepaid expenses and other current assets	78,833		20,632
Total current assets	304,967		317,235
Property and equipment, net	125,513		85,261
Operating lease right of use assets	171,442		132,173
Goodwill	787,885		769,667
Payor relationships, net	565,213		576,648
Other intangibles, net	231,368		248,973
Other assets	9,751		13,582
Total assets	$	2,196,139	$	2,143,539
Liabilities and stockholders' equity
Current liabilities:
Current portion of notes payable	$	6,444	$	6,493
Current portion of finance lease liabilities	1,595		1,295
Current portion of contingent consideration	5,700		3,123
Accounts payable and accrued expenses	110,301		80,829
Current portions due to sellers	2,038		17,357
Current portion operating lease liabilities	24,946		15,275
Other current liabilities	34,537		36,664
Total current liabilities	185,561		161,036
Notes payable, net of current portion and debt issuance costs	914,394		915,266
Long term portion of operating lease liabilities	160,479		122,935
Warrants liabilities	88,528		80,144
Long term portion of finance lease liabilities	3,139		2,181
Contingent consideration	28,000		35,300
Other liabilities	33,004		28,109
Total liabilities	1,413,105		1,344,971
Stockholders’ Equity
Shares of Class A common stock	24		18
Shares of Class B common stock	25		30
Additional paid-in capital	544,106		397,443
Accumulated deficit	(137,661)		(78,760)
Total Stockholders' Equity before non-controlling interests	406,494		318,731
Non-controlling interests	376,540		479,837
Total Stockholders' Equity	783,034		798,568
Total Liabilities and Stockholders' Equity	$	2,196,139	$	2,143,539

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

UNAUDITED

	Nine Months Ended September 30,
(in thousands)	2022		2021
Cash Flows from Operating Activities:
Net loss	$	(126,660)	$	(117,240)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	64,215		30,746
Change in fair value of contingent consideration	(9,525)		(4,152)
Change in fair value of warrant liabilities	8,383		(24,565)
Loss on extinguishment of debt	1,428		13,225
Amortization of debt issuance costs	2,743		4,162
Non-cash lease expense	8,367		—
Class A shares issued for bonus award	2,194		—
Stock-based compensation	42,641		13,131
Changes in operating assets and liabilities:
Accounts receivable, net	(75,913)		(25,494)
Other assets	10,885		(9,874)
Prepaid expenses and other current assets	(47,492)		(22,603)
Interest accrued due to seller	100		1,208
Accounts payable and accrued expenses	30,955		40,620
Other liabilities	3,521		6,343
Net cash provided by (used in) operating activities	(84,158)		(94,493)
Cash Flows from Investing Activities:
Purchase of property and equipment	(39,061)		(23,221)
Acquisitions of subsidiaries including non-compete intangibles, net of cash acquired	(4,995)		(1,065,479)
Payments to sellers	(4,097)		(24,148)
Net cash provided by (used in) investing activities	(48,153)		(1,112,848)
Cash Flows from Financing Activities:
Business Combination and PIPE financing	—		935,362
Payments of long-term debt	(4,833)		(656,294)
Debt issuance costs	(88)		(16,489)
Proceeds from long-term debt	—		1,120,000
Proceeds from revolving line of credit	25,000		—
Repayments of revolving line of credit	(25,000)		—
Proceeds from insurance financing arrangements	2,529		1,702
Payments of principal on insurance financing arrangements	(2,070)		(1,419)
Principal payments under finance leases	(1,037)		(233)
Repayment of equipment loans	(385)		(316)
Employee stock purchase plan withholding tax payments	(878)		—
Other	—		134
Net cash provided by (used in) financing activities	(6,762)		1,382,447
Net increase (decrease) in cash, cash equivalents and restricted cash	(139,073)		175,106
Cash, cash equivalents and restricted cash at beginning of year	163,170		33,807
Cash, cash equivalents and restricted cash at end of period	$	24,097	$	208,913

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Reconciliation of Non-GAAP

Adjusted EBITDA

UNAUDITED

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Net loss	$	(112,011)	$	(64,840)	$	(126,660)	$	(117,240)
Interest income	(4)		(1)		(7)		(4)
Interest expense	16,451		16,023		42,868		36,363
Income tax expense (benefit)	(1,248)		547		641		(762)
Depreciation and amortization expense	25,343		16,955		64,215		30,746
EBITDA	$	(71,469)	$	(31,316)	$	(18,943)	$	(50,897)
Stock-based compensation	11,041		9,451		42,641		13,130
De novo (1)	24,282		10,178		59,567		24,561
Transaction costs (2)	6,733		12,503		24,445		39,297
Restructuring and other (3)	5,245		2,123		8,846		5,513
Change in fair value of contingent consideration	900		(3,940)		(9,525)		(4,152)
Loss on extinguishment of debt	—		—		1,428		13,225
Change in fair value of warrant liabilities	65,721		14,650		8,383		(24,565)
Adjusted EBITDA	$	42,453	$	13,649	$	116,842	$	16,112

(1) De novo losses include those costs associated with the ramp up of new medical centers and losses incurred after the opening of a new facility. These costs collectively are higher than comparable expenses incurred once such a facility has been opened and is generating revenue, and would not have been incurred unless a new facility was being opened.

(2) Acquisition transaction costs included $1.7 million and $1.3 million for the three months ended June 30, 2022 and 2021, respectively, and $4.3 million and $3.0 million for the six months ended June 30, 2022 and 2021, respectively, of corporate development payroll costs. Corporate development payroll costs include those expenses directly related to the additional staff needed to support our acquisition activity.

(3) Restructuring and other included $5.0 million for the three and nine months ended September 30, 2022 related to a one-time professional services fee.

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Key Metrics

	Three Months Ended  September 30,
	2022		2021		% Change
Members:
Medicare Advantage	128,731		112,309		14.6	%
Medicare DCE	39,615		7,777		409.4	%
Total Medicare	168,346		120,086		40.2	%
Medicaid	73,865		63,871		15.6	%
ACA	52,385		26,706		96.2	%
Total members	294,596		210,663		39.8	%
Member months:
Medicare Advantage	383,645		337,724		13.6	%
Medicare DCE	119,936		22,715		428.0	%
Total Medicare	503,581		360,439		39.7	%
Medicaid	218,807		187,212		16.9	%
ACA	149,872		81,437		84.0	%
Total member months	872,260		629,088		38.7	%
Per Member Per Month ("PMPM"):
Medicare Advantage	$	1,127	$	1,151	(2.1)	%
Medicare DCE	$	1,215	$	1,349	(9.9)	%
Total Medicare	$	1,148	$	1,163	(1.3)	%
Medicaid	$	191	$	271	(29.5)	%
ACA	$	40	$	47	(14.9)	%
Total PMPM	$	718	$	753	(4.6)	%
Medical centers	151		113

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Key Metrics

	Nine Months Ended  September 30,
	2022		2021		% Change
Members:
Medicare Advantage	128,731		112,309		14.6	%
Medicare DCE	39,615		7,777		409.4	%
Total Medicare	168,346		120,086		40.2	%
Medicaid	73,865		63,871		15.6	%
ACA	52,385		26,706		96.2	%
Total members	294,596		210,663		39.8	%
Member months:
Medicare Advantage	1,102,625		820,881		34.3	%
Medicare DCE	367,326		46,639		687.6	%
Total Medicare	1,469,951		867,520		69.4	%
Medicaid	627,634		321,581		95.2	%
ACA	411,138		195,290		110.5	%
Total member months	2,508,723		1,384,391		81.2	%
Per Member Per Month ("PMPM"):
Medicare Advantage	$	1,189	$	1,053	12.9	%
Medicare DCE	$	1,320	$	1,283	2.9	%
Total Medicare	$	1,222	$	1,066	14.6	%
Medicaid	$	223	$	414	(46.1)	%
ACA	$	48	$	36	33.3	%
Total PMPM	$	780	$	769	1.4	%
Medical centers	151		113

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EX-99.2

1 Cano Health 3Q22 Financial Supplement November 9, 2022

2 Disclaimer This presentation (“Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to Cano Health, Inc. (“Cano Health” or the “Company”). The information contained herein does not purport to be all‐inclusive, and neither the Company nor any of its affiliates, control persons, officers, directors, employees, or representatives makes any representation or warranty, express or implied, as to the accuracy, completeness, or reliability of the information contained in this Presentation. Certain information contained in this Presentation relates to or is based on studies, publications, surveys, and the Company’s own internal estimates and research. In addition, certain data and other information included in this Presentation are based on a number of assumptions and limitations, and there can be no guarantee as to the accuracy or reliability of such assumptions. Finally, while the Company believes its internal research is reliable, such research has not been verified by any independent source. This Presentation also contains certain financial forecast information. Such financial forecast information, which constitutes forward‐looking information, is for illustrative purposes only and includes certain estimates and assumptions about expected medical costs and savings and recent acquisitions and other transactions and should not be relied upon as necessarily being indicative of future results. The assumptions and estimates underlying such financial forecast information are inherently uncertain and are subject to a wide variety of significant business, economic, competitive, and other risks, and uncertainties. Actual results may differ materially from the results contemplated by the financial forecast information contained in this Presentation, and the inclusion of such information in this Presentation should not be regarded as a representation as to the accuracy or completeness of such information or by any person that the results reflected in such forecasts will be achieved. Forward‐Looking Statements. This Presentation contains forward‐looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward‐looking statements relate to future events and involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and could materially affect actual results, performance or achievements. Such forward‐looking statement include, without limitation, our anticipated results of operations, including our financial guidance for the 2022 fiscal year, including total membership, total revenue, medical cost ratio, Adjusted EBITDA, total medical centers, interest expense, stock-based compensation expense, de novo losses and capital expenditures, our business strategies, our projections with respect to third-party medical costs and capitated revenue, and our expectations regarding membership growth; our prospects and plans, and other aspects of our operations or operating results. These forward‐looking statements generally can be identified by phrases such as “will,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. It is uncertain whether any of the events anticipated by the forward‐looking statements will transpire or occur, or if any of them do, what impact they will have on our results of operations and financial condition. Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in forward‐looking statements include, among others, changes in market or industry conditions, regulatory environment, competitive conditions, and receptivity to our services; changes in our strategy, future operations, prospects and plans; any adverse effects on our business as a result of the restatement; our ability to realize expected results with respect to patient membership, total revenue and earnings; our ability to grow market share in existing markets or enter into new markets and continue our growth; our ability to predict and control our medical cost ratio; our ability to integrate our acquisitions and achieve desired synergies; changes in laws and regulations applicable to our business; our ability to maintain our relationships with health plans and other key payors; developments and uncertainties related to the DCE program; the impact of COVID‐19 or another pandemic on our business and results of operation; our future capital requirements and sources and uses of cash, including funds to satisfy our liquidity needs; our ability to access new capital through sales of shares of our Class A common stock or issuance of indebtedness, which may harm our liquidity and/or our ability to grow our business; and our ability to recruit and retain qualified team members and independent physicians. For a detailed discussion of the risks and uncertainties that could cause our actual results to differ materially from those expressed or implied by the forward‐looking statements, please refer to our filings with the Securities and Exchange Commission (the “SEC”), including the risk factors identified in the Annual Report on Form 10-K filed with the SEC on March 14, 2022. Unless otherwise specified, all information provided in this Presentation is as of the date hereof. New risks emerge from time to time and it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those expressed in any forward‐looking statements we may make. Except as required by law, we undertake no obligation to update any forward‐looking statements to reflect events or circumstances after the date of such statements. You should, therefore, not rely on these forward‐looking statements as representing our views as of any date subsequent to the date of this Presentation. This Presentation also contains certain non‐GAAP financial measures as defined by the SEC rules. These non‐GAAP financial measures, such as EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin, have not been prepared in accordance with United States generally accepted accounting principles (“GAAP”). These non‐GAAP financial measures are in addition to, and not a substitute for, measures of financial performance prepared in accordance with GAAP. We believe these non‐GAAP measures of financial results provide useful information regarding certain financial and business trends relating to our financial condition and results of operations. Our management uses these non‐GAAP measures to compare our performance to that of prior periods for trend analyses, for purposes of determining management incentive compensation, and for budgeting and planning purposes. We believe that the use of these non‐GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in and in comparing our financial measures with other similar companies, many of which present similar non‐GAAP financial measures to investors. We do not consider these non‐GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non‐GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in our financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non‐GAAP financial measures. In addition, other companies may calculate non‐GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non‐GAAP financial measures as tools for comparison. As required by Regulation G, we have provided a reconciliation of those measures to their most directly comparable GAAP measures, in this document. However, we have not reconciled our expectations as to non‐GAAP measures in future periods to their most directly comparable GAAP measure because certain costs and expenses are outside of our control or cannot be reasonably predicted. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to our results computed in accordance with GAAP. You should review our financial statements filed with the SEC, and not rely on any single financial measure to evaluate our business.

3 Transforming patient care by delivering superior primary care services through access, quality, and wellness We are a high-touch, tech-enabled, population health management company with a powerful combination of medical centers and services making healthcare more accessible and affordable Industry-leading independent primary care provider company Technology-driven population heath management Patient-focused medical centers adapted to the local community ++

4 Cano Health’s Long-term Investment Thesis We serve our nation’s rapidly growing senior population so they can live longer, healthier lives Primary care is a critical service and a necessary part of our nation’s healthcare system Over 95% of our revenue is recurring as monthly payments from payors to provide for the healthcare needs of our members Nearly all our revenue comes from federal and state governments, either directly or through health plans Our value-based primary care model is increasingly recognized as a potential solution to our nation’s ever-rising healthcare expenditures Future of Healthcare Delivery is Value Based Strong Government Funding Support Recurring Revenue Critical Service Large & Growing Market

5 3Q 2022 Highlights Scale and density driving sustainable, profitable growth Adjusted EBITDA(1) $42.5M vs. $13.6M prior year Medicare Capitated Membership 168K, +40% y-y Reflects continued membership growth and operational expansion Revised 2022 guidance reflects lower capitated revenue PMPM in 2H22 • Total revenue $2.70B to $2.75B • Medical cost ratio 79.5% to 80.5% • Adj. EBITDA $150M to $160M Total Revenue $665M, +33% y-y Total Membership 295K, +40% y-y Our Build, Buy, and Manage approach provides a differentiated growth strategy, powered by CanoPanorama Medical centers and affiliates provide necessary capacity for continued growth 3Q22 Total MCR(2) of 78.2% 3Q22 MCR of ~73.0% excluding Medicare DCE(3) (1) Adjusted EBITDA is a non-GAAP financial measure. Please refer to the reconciliation table in the appendix for a reconciliation of Adjusted EBITDA to the most comparable GAAP measure. (2) Medical Cost Ratio (MCR) = Third‐party Medical Costs / Capitated Revenue (3) Medicare Direct Contracting Entity program 3Q22 MCR improved versus 3Q21 MCR of 80.5%, or 79.3% excluding Medicare DCE Membership expectation of 300,000 to 305,000 is unchanged 170 Medical centers projected by year-end within existing markets Over 1,000 affiliates in 9 states and Puerto Rico Capital management is an essential focus Prioritizing profitability and cash flow 3Q22 Adj. EBITDA was lower than internal expectations, primarily due to new patients with lower capitated revenue • Prioritize cash flow & earnings growth • Near-term focus on cost management • Leverage existing capacity to continue organic growth

6 Proven Track Record of Membership Growth 38K 45K 54K 57K 87K 129K 131K 148K 190K 228K 295K 24K 54K 49K 49K 29K 27K 79K 79K 79K 53K 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 36% 60% 58% 37% 43% 30% 28% 40% 63% 46% 40% 122% 253% 201% 155% 91% 57% 105% 115% 130% 80% 40% Organic Inorganic Note: Organic growth represents growth from our base business, and growth from integrating existing affiliates and small independent practices whose patients and facilities are blended with our nearby owned medical centers. (1) Membership as of period end. Differences in the included tables are due to rounding and are not significant. Organic Growth: Total Growth: Membership Growth(1) 61K 99K 103K 106K 117K 156K 211K 227K 269K 282K 295K

7 National Care Platform : Access, Quality, and Wellness within a capitated payment model Operating Model : Flexible – Medical centers and affiliates with staff and services reflecting the communities we serve Growth Avenues : Maintain optionality – build, buy, manage – de novo, acquire, affiliates Strategic Objective : Obtain speed, scale, and density QUALITY WELLNESSACCESS Transportation Cano@Home/Telehealth 24/7 Urgency Line Classes Cano Life Physiotherapy Disease Management Care Coordination Preventive Screenings BUILD MANAGEBUY Physician Practice Acquisitions Affiliated Practices De Novo Centers Expand Existing Centers National Care Platform… …with a Flexible Growth Model A Differentiated Value-Based Primary Care Model

8 Growing Geographic Footprint (1) Includes Puerto Rico from 2019 onward Note: Number of expected medical centers in 2022 is an estimate based on management’s internal projections, and is subject to change Affiliates onlyMedical Centers & Affiliates Expect to deliver 40 medical centers in FY 2022 • 7 added in 1Q22: 5 FL, 1 NM, 1 NV • 6 added in 2Q22: 4 FL, 2 TX • 8 added in 3Q22: 3 IL, 2 TX, 2 CA, 1 PR • Expect 19 to be added in 4Q22 2018 2019 2020 2021 1Q22 2Q22 3Q22 2022E States (1) 1 2 4 9 10 10 10 10 Medical Centers 19 35 71 130 137 143 151 170 Members 25K 42K 106K 227K 269K 282K 295K 300K-305K 1,000+ affiliates in 9 states + Puerto Rico Cano Health Medical Centers State 2020 2021 1Q22 2Q22 3Q22 Florida 64 101 106 110 110 Texas 4 11 11 13 15 Nevada 3 8 9 9 9 California -- 4 4 4 6 Illinois -- 4 4 4 7 New Mexico -- 2 3 3 3 Puerto Rico -- -- -- -- 1 Total 71 130 137 143 151

9 Guidance for Full Year 2022 (1) Medical Cost Ratio = Third Party Medical Expense / Total Capitated Revenue (2) Adjusted EBITDA is a non-GAAP financial measures. Please refer to the reconciliation table for a reconciliation of Adjusted EBITDA to the most comparable GAAP measure FY 2022 November 9, 2022 FY 2022 August 9, 2022 Total Membership 300,000 - 305,000 300,000 - 305,000 Total Revenues $2.70B - $2.75B $2.85B - $2.90B Medical Cost Ratio (MCR) (1) 79.5% - 80.5% 78.0% - 79.0% Adjusted EBITDA (2) $150M - $160M ~$200M Total Medical Centers 170 184 - 189 Lowering 2022 guidance for total revenue, raising the total MCR range, and lowering Adjusted EBITDA guidance Raising 2022 total MCR range to 79.5% to 80.5%, primarily driven by lower-than-expected capitated revenue PMPM from new members Additional guidance for full year 2022: • Interest expense: ~$60 million • Stock-based compensation expense: ~$60 million • De novo losses: ~$85 million • Capital expenditures: ~$55 million

10 Cano Health’s Growth Has Been Significant (1) Membership as of period end (2) Adjusted EBITDA is a non-GAAP financial measure. Please refer to the reconciliation table for a reconciliation of Adjusted EBITDA to the most comparable GAAP measure (3) Represents midpoint of the 2022E guidance range for members and revenue $361 $832 $1,609 $2,725 2019 2020 2021 2022E Members(1) Revenue Adjusted EBITDA(2) 42K 106K 227K ~303K 2019 2020 2021 2022E 94% CAGR(3) ($ in millions) ($ in millions) $24 $73 $27 2019 2020 2021 2022E 96% CAGR(3) 87% CAGR(3) ~$155

11 Appendix

12 Members 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Medicare Advantage 75,488 103,812 112,309 118,348 119,105 123,768 128,731 Medicare DCE - 8,054 7,777 7,651 41,201 40,179 39,615 Total Medicare 75,488 111,866 120,086 125,999 160,306 163,947 168,346 Medicaid 21,801 25,178 63,871 66,500 67,982 70,254 73,865 ACA 19,606 18,994 26,706 34,506 41,045 47,324 52,385 Total Members 116,895 156,038 210,663 227,005 269,333 281,525 294,596 % Total 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Medicare Advantage 65% 67% 53% 53% 45% 44% 44% Medicare DCE - 5% 4% 3% 15% 14% 13% Total Medicare 65% 72% 57% 56% 60% 58% 57% Medicaid 19% 16% 30% 29% 25% 25% 25% ACA 16% 12% 13% 15% 15% 17% 18% Total Members 100% 100% 100% 100% 100% 100% 100% Revenue PMPM 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Medicare Advantage $979 $990 $1,151 $1,098 $1,249 $1,196 $1,127 Medicare DCE - 1,221 1,349 1,261 1,379 1,362 1,215 Total Medicare 979 1,010 1,163 1,108 1,283 1,238 1,148 Medicaid 615 612 271 258 257 223 191 ACA 44 14 47 43 58 48 40 Total $760 $801 $753 $706 $839 $787 $718 Membership Mix and PMPM: 1Q21 – 3Q22 Note: Differences in the included tables are due to rounding and are not significant.

13 Membership Medical Centers and Affiliates: 1Q22 – 3Q22 (1) Medicare DCE members within our medical centers and affiliates are approximate. Note: Differences in the included tables are due to rounding and are not significant. Members 1Q22 2Q22 3Q22 Medicare Advantage 65,579 68,760 70,744 Medicare DCE(1) 5,133 4,981 4,833 Medicaid 65,769 67,887 71,505 ACA 40,921 47,324 52,385 Total Medical Center 177,402 188,952 199,467 Medicare Advantage 53,526 55,008 57,987 Medicare DCE(1) 36,068 35,198 34,782 Medicaid 2,337 2,367 2,360 Total Affiliate 91,931 92,573 95,129 Total Members 269,333 281,525 294,596 % of Total Members 1Q22 2Q22 3Q22 Medicare Advantage 24% 24% 24% Medicare DCE 2% 2% 2% Medicaid 24% 24% 24% ACA 15% 17% 18% Total Medical Center 66% 67% 68% Medicare Advantage 20% 20% 20% Medicare DCE 13% 13% 12% Medicaid 1% 1% 1% Total Affiliate 34% 33% 32% Total Members 100% 100% 100%

14 Revenue Mix: 1Q21 – 3Q22 $ Millions 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Medicare Advantage 220.2 255.8 388.6 380.8 442.7 436.0 432.2 Medicare DCE - 29.2 30.6 29.1 172.5 166.6 145.7 Total Medicare 220.2 285.0 419.2 409.9 615.2 602.6 578.0 Medicaid 38.6 43.7 50.7 50.7 52.0 46.2 41.9 ACA 2.5 0.8 3.8 3.9 7.1 6.7 6.0 Total Capitated Revenue 261.3 329.5 473.7 464.6 674.4 655.5 625.9 Fee-for-Service and Other Revenue 13.2 14.1 25.2 27.7 30.0 33.9 39.1 Total Revenue 274.6 343.6 498.9 492.2 704.3 689.4 665.0 % Total 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Medicare Advantage 80% 74% 78% 77% 63% 63% 65% Medicare DCE 0% 9% 6% 6% 25% 24% 22% Total Medicare 80% 83% 84% 83% 87% 87% 87% Medicaid 14% 13% 10% 10% 7% 7% 6% ACA 1% 0% 1% 1% 1% 1% 1% Total Capitated Revenue 95% 96% 95% 94% 96% 95% 94% Fee-for-Service and Other Revenue 5% 4% 5% 6% 4% 5% 6% Total Revenue 100% 100% 100% 100% 100% 100% 100% Note: Differences in the included tables are due to rounding and are not significant.

15 YoY Change 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Capitated Revenue 101% 98% 88% 87% 158% 99% 32% Fee-for-Service and Other Revenue 74% 93% 147% 172% 127% 140% 56% Total Revenue 99% 98% 91% 91% 156% 101% 33% Third-Party Medical Costs 129% 161% 106% 99% 175% 86% 28% Direct Patient Expense 84% 57% 62% 104% 77% 48% 27% SG&A 67% 116% 180% 177% 175% 125% 46% Adjusted EBITDA(1) 20% (181%) (36%) (38%) 160% 293% 208% Financial Summary: 1Q21 – 3Q22 $ Millions 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Capitated Revenue 261.4 329.5 473.8 464.6 674.4 655.5 625.9 Fee-for-Service and Other Revenue 13.2 14.1 25.2 27.7 30.0 33.9 39.1 Total Revenue 274.6 343.6 498.9 492.2 704.4 689.4 665.0 Third-Party Medical Costs 195.0 291.8 381.3 362.9 535.8 541.3 489.6 Direct Patient Expense 34.2 35.6 50.4 59.2 60.7 52.6 63.9 SG&A 35.0 47.2 76.6 93.3 96.6 106.2 111.8 Adjusted EBITDA(1) 17.5 (15.2) 13.8 11.1 45.0 29.4 42.5 (1) Adjusted EBITDA is a non-GAAP financial measures. Please refer to the reconciliation table in this supplement for a reconciliation of Adjusted EBITDA to the most comparable GAAP measure. Note: Differences in the included tables are due to rounding and are not significant.

16 Margin Analysis: 1Q21 – 3Q22 % Total Revenue (except as noted) 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Medical Cost Ratio(1) 74.6% 88.6% 80.5% 78.1% 79.5% 82.6% 78.2% Direct Patient Expense Ratio 12.5% 10.4% 10.1% 12.0% 8.6% 7.6% 9.6% SG&A Ratio (excl. Stock Comp) 12.7% 12.7% 13.5% 15.9% 11.8% 12.8% 15.1% Adjusted EBITDA Margin(2) 6.4% (4.4%) 2.7% 2.3% 6.4% 4.3% 6.4% YoY bp change 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Medical Cost Ratio(1) 910 2,130 692 452 482 (602) (228) Direct Patient Expense Ratio (102) (268) (181) 81 (385) (276) (50) SG&A Ratio (excl. Stock Comp) (247) 13 301 303 (97) 12 164 Adjusted EBITDA Margin(2) (421) (1,521) (544) (475) 2 869 362 (1) Medical Cost Ratio = Third-party Medical Costs / Capitated Revenue (2) Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. Please refer to the reconciliation table in this supplement for a reconciliation of Adjusted EBITDA to the most comparable GAAP measure. Note: Differences in the included tables are due to rounding and are not significant.

17 ($ in millions) 3Q21 4Q21 1Q22 2Q22 3Q22 Net income (loss) (64.8) 0.5 (0.1) (14.6) (112.0) Interest expense, net 16.0 14.9 13.3 13.1 16.4 Income tax expense (benefit) 0.5 0.8 1.0 0.8 (1.2) Depreciation and amortization expense 17.0 18.7 19.0 19.8 25.3 EBITDA(1) (31.3) 34.9 33.3 19.2 (71.5) Stock-based compensation 9.5 14.8 13.8 17.8 11.0 De novo 10.2 16.0 15.8 19.5 24.3 Transaction costs 12.4 8.9 9.9 7.8 6.7 Restructuring and other 2.3 2.4 2.6 1.0 5.2 Change in fair value of contingent consideration (3.9) (7.5) (4.7) (5.8) 0.9 Loss on extinguishment of debt 0.0 (0.1) 1.4 0.0 0.0 Change in fair value of warrant liabilities 14.6 (58.3) (27.2) (30.2) 65.7 Adjusted EBITDA(1) (2) 13.6 11.1 45.0 29.4 42.5 A B C D E F (1) EBITDA and Adjusted EBITDA are non-GAAP financial measures. A non-GAAP financial measure is a performance metric that departs from GAAP because it excludes earnings components that are required under GAAP. Other companies may define non-GAAP financial measures differently and, as a result, our non-GAAP financial measures may not be directly comparable to those of other companies (2) Adjusted EBITDA is EBITDA adjusted to add back the effect of certain expenses, such as stock-based compensation expense, de novo losses, transaction costs, restructuring and other charges, loss on extinguishment of debt, and changes in fair value of warrant liabilities. Adjusted EBITDA is a key measure used by our management to assess the operating and financial performance of our business in order to make decisions on allocation of resources. Represents non-cash compensation charges Represents costs associated with the ramp up of new medical centers and losses incurred for the twelve months after the opening of a new facility Represents legal expenses, professional fees, and expenses directly related to staff needed to support acquisition activity Includes one-time legal, IT, severance and various other non-recurring items Represents the non-cash change in the value of contingent considerations related to acquired practices Represents costs related to amended or previously repaid debt Represents non-cash impact from change in warrant liabilities A B C D E F Non-GAAP Financial Measures Reconciliation Note: Differences in the included tables are due to rounding and are not significant. G G

18 0 5 10 15 20 25 0 50 100 150 200 250 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Total Admissions Per 1,000 COVID-19 Admissions Per 1,000 0.6 21.1 Cano Health Total vs. COVID-19 Hospital Admissions Average Monthly Hospital Admissions Per 1,000 A verage D aily C O V ID -1 9 A d m issio n s Per 1 ,0 0 0A ve ra ge D ai ly T o ta l A d m is si o n s Pe r 1 ,0 0 0 Source: Cano Health company data. Includes acquired members. Note: Prior period data adjusted for claims lag 2021 2022

19

XML

Cover	Nov. 09, 2022
Document Information [Line Items]
Document Type	8-K
Document Period End Date	Nov. 09, 2022
Entity Registrant Name	Cano Health, Inc
Entity File Number	001-39289
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	9725 NW 117th Avenue
Entity Address, City or Town	Miami
Entity Address, State or Province	FL
Entity Tax Identification Number	98-1524224
Entity Address, Postal Zip Code	33178
City Area Code	855
Local Phone Number	226-6633
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001800682
Amendment Flag	false
Class A common stock, $0.0001 par value per share
Document Information [Line Items]
Title of 12(b) Security	Class A common stock, $0.0001 par value per share
Trading Symbol	CANO
Security Exchange Name	NYSE
Warrants to purchase one share of Class A common stock, each at an exercise price of $11.50 per share
Document Information [Line Items]
Title of 12(b) Security	Warrants to purchase one share of Class A common stock, each at an exercise price of $11.50 per share
Trading Symbol	CANO/WS
Security Exchange Name	NYSE