The Oncology Institute(US:TOI)2025-11-13 21:19Revenue Growth - For the three months ended September 30, 2025, total operating revenue increased by 36.7% to $136.564 million compared to $99.901 million in the same period of 2024[209]. - Patient services revenue for the three months ended September 30, 2025, was $60.195 million, reflecting a 21.0% increase from $49.752 million in the prior year[209]. - Dispensary revenue for the three months ended September 30, 2025, rose by 57.4% to $75.895 million, up from $48.210 million in the same quarter of 2024[209]. - Total operating revenue for the nine months ended September 30, 2025, was $360.772 million, a 23.1% increase from $293.145 million in the same period of 2024[209]. Expenses and Costs - Total operating expenses for Q3 2025 were $144.6 million, an increase of 27.1% from $113.8 million in Q3 2024[213]. - Patient services costs increased by 17.7% in Q3 2025, primarily due to rising intravenous drug costs, while clinical payroll costs decreased by 1.8%[214]. - Dispensary costs rose by 97.7% in Q3 2025 due to a significant increase in the number of prescriptions filled, despite a 20.4% decrease in average prescription costs[215]. - Selling, general and administrative expenses were 18.5% of total operating revenue for the three months ended September 30, 2025, compared to 26.7% in the same period of 2024[208]. - Selling, general and administrative (SG&A) expenses decreased by 4.5% in Q3 2025 to $25.4 million, attributed to cost discipline and operational efficiency[216]. Profitability and Loss - The company reported a net loss of 12.2% for the three months ended September 30, 2025, compared to a net loss of 16.2% in the same period of 2024[208]. - The net loss for the nine months ended September 30, 2025, was $53.1 million, a slight increase of 3.1% from $51.5 million in the same period of 2024[227]. - Adjusted EBITDA for Q3 2025 was $(3.46) million, a 57.8% improvement from $(8.20) million in Q3 2024[226]. Cash Flow and Liquidity - As of September 30, 2025, the company had cash and cash equivalents of $27,658 and an accumulated deficit of $263,911, with a net loss of $53,098 for the nine months ended September 30, 2025[229]. - The company improved cash flow from operations by approximately $2,904, a 9% reduction in cash used compared to the same period in the prior year[231]. - Net cash used in operating activities decreased to $27,820 for the nine months ended September 30, 2025, compared to $30,724 in the prior year, reflecting a 9% improvement[236]. - The company expects sufficient liquidity to fund operations for at least one year from the issuance date of the financial statements[232]. - Cash provided by accounts payable and accrued expenses increased by $1,027 for the nine months ended September 30, 2025, due to cash management initiatives[240]. Market and Operational Insights - The number of fills in the dispensary increased by 97.7% for the three months ended September 30, 2025, contributing to the revenue growth despite a 20.4% decrease in average revenue per fill[211]. - The number of clinics remained stable at 80, while the number of markets expanded to 22 from 14 in the prior year[222]. - The company anticipates continued increases in selling, general and administrative expenses due to costs associated with being a public company and business growth[206]. Financial Instruments and Risks - Interest expense for the nine months ended September 30, 2025, increased by 47.9% to $9.36 million compared to $6.33 million in the prior year[219]. - The fair value of conversion option derivative liabilities increased by $5.98 million in Q3 2025 due to a rise in stock price[220]. - Total material cash requirements over the next five years are estimated at $125,380, including $93,227 for convertible notes and $31,667 for operating leases[241]. - Inflation has increased costs for drugs and clinical trials, potentially leading to faster depletion of cash reserves[266]. - Impairment risk is assessed annually, with potential economic disruptions and rising interest rates posing threats to goodwill and intangible assets[267]. Revenue Recognition - The transaction price for FFS arrangements is variable, based on patient encounters and provider costs, with revenue recognized only when significant reversal of cumulative revenue is unlikely[252]. - Revenue for dispensed prescriptions is based on fee schedules set by PBMs, with DIR fees impacting the transaction price[256]. - Clinical research contracts are recognized as a single performance obligation, with revenue invoiced periodically based on trial progress[257].