Group 1 - The Oncology Institute, Inc. (TOI) will be included in the Russell 2000® and Russell 3000® indexes after the 2025 annual reconstitution, effective June 27, 2025 [1][2] - Membership in the Russell 3000® Index is based on market capitalization rankings and remains for one year, which also ensures inclusion in the Russell 1000 Index or Russell 2000 Index [2] - The CEO of TOI expressed that this inclusion is a significant milestone reflecting the company's growth and commitment to value-based cancer care [3] Group 2 - The Russell indexes are utilized by investment managers and institutional investors, with approximately $10.6 trillion in assets benchmarked against them as of June 2024 [3] - TOI provides specialized, value-based cancer care to over 1.8 million patients, with a workforce of over 120 clinicians and more than 700 staff across 70 clinic locations [5]

Company Overview - American Oncology Network (AON) is one of the fastest-growing community oncology networks in the United States, founded in 2018, representing over 290 providers across 21 states [6][7] - AON focuses on innovative healthcare solutions through a physician-led model, promoting value-based care that improves patient outcomes while reducing costs [7] Leadership Appointment - Joe Verschleiser has been appointed as the chief growth and performance officer of AON, bringing over a decade of experience in healthcare, including roles in operations, financial strategy, and mergers and acquisitions [2][3] - His previous role was president of the West Division at Unified Women's Healthcare, where he managed strategy and operations for over 200 physicians [3] Strategic Focus - In his new role, Verschleiser will lead growth strategy and performance optimization for AON partner practices, focusing on expansion and new business line opportunities [2] - AON aims to strengthen its national presence and support the long-term success of its partner practices through strategic initiatives [2][4] Commitment to Quality Care - AON is dedicated to expanding access to high-quality, affordable cancer care and addressing disparities in cancer care to promote health equity [4][7] - The organization provides comprehensive support and integrated services to enable physicians to focus on delivering the highest standard of care [7]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 increased by 10% year-over-year, reaching $104.4 million [5][13] - Gross profit for Q1 2025 was $17.2 million, representing a 44.1% increase compared to Q1 2024 [9][14] - Adjusted EBITDA loss was $5.1 million, an improvement from a loss of $10.9 million in Q1 2024 [16] - Free cash flow was negative $3.9 million, an improvement from negative $15.4 million in Q1 2024 [17] Business Line Data and Key Metrics Changes - The Retail Pharmacy and Dispensary business generated $49.3 million in revenue, growing over 20% year-over-year [6] - Fee-for-service revenue grew by 2.3% year-over-year to $35.6 million [13] - The capitation business saw a slight decline of 1% year-over-year [28] Market Data and Key Metrics Changes - The company added over 80,000 lives under new capitation contracts in Q1 2025, with projections for an additional 100,000 lives in Q2 and Q3 [6][9] - The company signed a new capitation contract in Nevada, adding over 80,000 Medicaid lives effective July 1 [6] Company Strategy and Development Direction - The company aims for profitability and positive cash flow by the end of 2025, focusing on operational management and strategic market expansion [5][22] - A new Chief Clinical Officer has been appointed to enhance capabilities in therapeutics and utilization management [10][11] - The company is outsourcing its clinical trials program to Helios Clinical Trials, which will impact revenue recognition but is expected to enhance growth [9][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive adjusted EBITDA in Q4 2025, supported by growth in the dispensary segment and new contracts [19][22] - The company is closely monitoring potential impacts from tariffs and drug pricing regulations but does not currently anticipate negative effects [20][21] Other Important Information - SG&A expenses decreased by 9% year-over-year, reflecting improved efficiency [16] - The company successfully executed a partial paydown of $20 million in convertible preferred debt [10] Q&A Session Summary Question: What drove the gross profit growth of 44% year-over-year? - The growth was attributed to a one-time rebate from a new contract with the primary distributor and favorable drug pricing changes [25][26] Question: Can you discuss the fee-for-service revenue growth? - Fee-for-service revenue grew by 2% year-over-year, with a robust pipeline for new contracts expected to contribute to future growth [29][35] Question: What are the expectations for SG&A savings in 2025? - The company aims to keep SG&A roughly flat for 2025 while seeking efficiencies through vendor and labor management [31] Question: Are there any significant contract renewals coming up? - There are no significant renewals expected in the near future, as most relationships are multi-year and auto-renew [54] Question: How does the trend of delivering cancer care at home align with the company's business? - The company views the trend positively and is exploring innovative ways to deliver therapeutics in the home setting [58]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 increased by 10% year-over-year, reaching $104.4 million [5][13] - Gross profit for Q1 2025 was $17.2 million, representing a 44.1% increase compared to Q1 2024 [14] - Adjusted EBITDA loss was $5.1 million, an improvement from a loss of $10.9 million in Q1 2024 [15] - Net loss for the quarter was $19.6 million, an improvement of $303,000 compared to Q1 2024 [15] - Free cash flow was negative $3.9 million, compared to negative $15.4 million in Q1 2024 [16] Business Line Data and Key Metrics Changes - The Retail Pharmacy and Dispensary business generated $49.3 million in revenue, growing over 20% year-over-year [6] - Fee-for-service revenue grew by 2% year-over-year, reaching $35.6 million [13] - The dispensary segment saw a 24.2% growth, driven by increased prescription attachments to patient visits [13] Market Data and Key Metrics Changes - The company added over 80,000 lives under new capitation contracts in Q1 2025, with anticipated new contracts projected to add approximately $50 million in annualized revenue [6][19] - The company is focusing on expanding its presence in Florida, California, and Nevada markets [6] Company Strategy and Development Direction - The company aims for profitability and positive cash flow by the end of 2025, with a focus on operational management and strategic market expansion [5][22] - A new fully delegated capitation agreement in Florida is expected to enhance management capabilities and future opportunities [7] - The company is outsourcing its clinical trials program to Helios Clinical Trials to accelerate growth in existing and new markets [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance despite a projected $5 million reduction in revenue due to the outsourcing of clinical trials [19] - The company is closely monitoring potential impacts from tariffs and drug pricing regulations but currently does not anticipate negative effects on guidance [20][21] - Management highlighted a strong pipeline of new contracts and a commitment to maintaining SG&A expenses flat for 2025 [32] Other Important Information - The company successfully executed a partial paydown of $20 million in convertible preferred debt and raised $16 million in capital, strengthening its financial position [10] - The Chief Clinical Officer role was created to enhance the company's clinical capabilities in response to the evolving drug landscape [11] Q&A Session Summary Question: Can you talk about the gross profit growth of 44% year-over-year? - The growth was driven by a one-time rebate of $1.5 million and favorable drug pricing changes [26][28] Question: Can you discuss the fee-for-service revenue growth? - Fee-for-service revenue increased by 2% year-over-year, with a robust pipeline of new contracts expected to contribute to future growth [29][35] Question: What are the expectations for SG&A management in 2025? - The company aims to keep SG&A expenses roughly flat while seeking efficiencies through technology initiatives [32] Question: Are there any significant contract renewals coming up? - There are no significant renewals expected, as most relationships are multi-year and auto-renew [54] Question: How does the trend of delivering cancer care at home align with the company's business? - The company views this trend positively and is exploring innovative ways to deliver therapeutics in the home setting [56]

Core Insights - The Oncology Institute, Inc. (TOI) reported a strong start to 2025, with expectations for sustained cash flow positivity and profitability in the second half of the year, driven by operational efficiencies and strategic market expansion [4][5][6] - The company anticipates adding approximately $50 million in new revenue from new capitation contracts projected for the first half of 2025, with a potential increase of 100,000 lives in the second half of the year [4][6] Recent Operational Highlights - TOI achieved consolidated revenue of $104.4 million in Q1 2025, a 10.3% increase from $94.7 million in Q1 2024 [8] - The retail pharmacy and dispensary segment generated $49.3 million in revenue, growing over 20% year-over-year [6][9] - Fee-for-service revenue grew by 9% in Q1 2025 compared to Q4 2024, reflecting investments in referral management and call center expansion [6] Financial Performance - Gross profit for Q1 2025 was $17.2 million, a 44.1% increase from the prior year quarter [10] - The net loss for Q1 2025 was $19.6 million, slightly improved from a net loss of $19.9 million in Q1 2024 [12] - Adjusted EBITDA improved to $(5.1) million in Q1 2025 from $(10.9) million in Q1 2024 [12][20] Guidance for Fiscal Year 2025 - TOI expects full-year revenue to be between $460 million and $480 million, with gross profit projected between $73 million and $82 million [7] - The company anticipates Adjusted EBITDA to range from $(8) million to $(17) million for the year [7] Key Business Metrics - As of March 31, 2025, TOI operated 81 clinics across 18 markets, serving approximately 1.9 million lives under value-based contracts [32] - Cash and cash equivalents stood at $39.7 million as of March 31, 2025, down from $49.7 million at the end of 2024 [33]

Company Overview - The Oncology Institute, Inc. (TOI) is one of the largest value-based oncology groups in the United States, founded in 2007 [3] - TOI provides specialized, evidence-based cancer care to over 1.8 million patients, including clinical trials and transfusions, with over 120 employed clinicians and more than 700 staff across 70 clinic locations [3] Leadership Change - Dr. Jeffrey Langsam has been appointed as the Chief Clinical Officer (CCO) of TOI, effective May 13, 2025 [1] - Dr. Langsam previously held significant roles at Cigna Healthcare and Aetna, bringing extensive experience in oncology and specialty pharmacy to TOI [1][2] Strategic Focus - The appointment of Dr. Langsam is expected to enhance TOI's therapeutic decision-making model and support the growth of its Managed Services Organization (MSO) model [2] - The company is experiencing an acceleration in new value-based partnerships and risk-based contracts, positioning it for continued growth in clinical offerings [2]

Core Insights - The Oncology Institute, Inc. (TOI) is one of the largest value-based oncology groups in the United States, focusing on specialized cancer care [1][2] - TOI will participate in B. Riley's 25th Annual Institutional Investor Conference on May 21, 2025, with key executives attending [1] Company Overview - Founded in 2007, TOI provides value-based cancer care to over 1.8 million patients, including services like clinical trials and transfusions [2] - The organization employs over 120 clinicians and has more than 700 staff across 70 clinic locations, aiming to improve oncology care [2]

Core Insights - The Oncology Institute, Inc. (TOI) has been selected to present an abstract at the ASCO Annual Meeting, highlighting the cost savings and reduced hospitalizations associated with its High-Value Cancer Care (HVCC) model [1][2] - The HVCC model has demonstrated over 50% reductions in Emergency Department utilization and hospitalizations, along with cost savings exceeding $12,000 per patient enrolled [2][5] Company Overview - Founded in 2007, TOI specializes in value-based cancer care, serving over 1.8 million patients with a team of over 120 clinicians and more than 700 staff across 70 clinic locations [4] - TOI's approach includes evidence-based cancer care, clinical trials, and transfusions, aiming to improve oncology care in community settings [4] Clinical Outcomes - Recent data indicates a 53% reduction in Emergency Department use, a 68% decrease in hospitalizations, and a 75% lower odds of death in acute care facilities for patients enrolled in the HVCC model [5] - The total cost of care is lowered by $12,000 per enrolled patient, further validating the effectiveness of TOI's care model [5]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $100.3 million, a 17% increase compared to Q4 2023, driven primarily by dispensary revenue [21] - Full year 2024 revenue reached $393 million, representing a 21.3% increase from 2023 [25] - Gross profit for Q4 2024 was $14.6 million, a 2% increase year-over-year, while full year gross profit was $54 million, a 9.4% decrease from 2023 [22][25] - Net loss for Q4 2024 was $13 million, an improvement of $5.6 million compared to Q4 2023, while the full year net loss was $64.6 million, a decrease of $18.4 million from 2023 [23][27] - Adjusted EBITDA for Q4 2024 was negative $7.8 million, compared to negative $6.3 million in Q4 2023, and for the full year, it was negative $35.7 million [23][27] Business Line Data and Key Metrics Changes - Value-based patient services saw significant growth with six new contracts totaling over 270,000 lives launched in Q3 and Q4 2024 [9] - Pharmacy and medically integrated dispensaries generated $48 million in Q4 and $180 million for the full year, reflecting a 73% annualized growth [10] - SG&A expenses decreased by 12% in Q4 2024 compared to Q4 2023, demonstrating operational efficiency [12] Market Data and Key Metrics Changes - The company expanded its operations outside California, signing two new contracts in Florida during Q4 2024, totaling over 200,000 lives [9] - The company is positioned to handle substantial growth in new markets without increasing overhead costs [31] Company Strategy and Development Direction - The company aims to achieve profitability and positive cash flow by the end of 2025, focusing on operational management and strategic market expansion [8][39] - A key strategy includes optimizing the cost structure and enhancing financial flexibility through debt restructuring and capital raises [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in crossing the line to profitability by the end of 2025, despite 2024 not meeting expectations [8] - The company anticipates a gradual reduction in losses throughout 2025, with expectations of positive EBITDA in Q4 [35] Other Important Information - Cash and cash equivalents increased to $49.7 million by the end of Q4 2024, aided by working capital management [28] - The company successfully amended its facility agreement, including a $20 million principal paydown of outstanding debt [16] Q&A Session Summary Question: What are the significant moving factors for 2025 guidance? - Growth in capitation contracts and organic growth in fee-for-service and dispensary are essential for achieving targets [45] Question: Will patient service be a meaningful growth driver in 2025? - Yes, the capitation segment will be the primary driver of overall profitability [48] Question: What is the capacity of new clinics in Florida compared to California? - California clinics are operating at about 75% capacity, while Florida clinics are at approximately 40% capacity [54] Question: Any thoughts on the recent reimbursement landscape? - General macro trends in the oncology industry are favorable, with potential benefits from changes related to drug pricing [59]

Core Insights - The Oncology Institute, Inc. (TOI) reported a consolidated revenue of $100 million for Q4 2024, marking a 16.9% increase compared to Q4 2023, driven primarily by dispensary revenue growth [9][14] - The company achieved a net loss of $13.2 million in Q4 2024, an improvement from a net loss of $18.8 million in the same quarter of the previous year [13][18] - For the fiscal year 2025, TOI projects revenue between $460 million and $480 million, with gross profit expected to be between $73 million and $82 million [6] Recent Operational Highlights - TOI successfully reduced cash burn and generated positive cash flow from operations for the second consecutive quarter, amounting to approximately $4.2 million in Q4 2024 [4][7] - The company launched six new contracts in Q3 and Q4 2024, covering over 250,000 lives, contributing to a sequential increase of over 15% in value-based patient services [7][10] - A new agreement with the primary drug supplier improved discounts, optimizing cost positioning for revenue growth targets [7] Financial Performance - Q4 2024 gross profit was $15 million, a 1.8% increase from Q4 2023, while selling, general, and administrative expenses decreased by 12% year-over-year [11][12] - The total revenue for the year ended December 31, 2024, was $393 million, reflecting a 21.3% increase compared to the previous year [14] - Adjusted EBITDA for Q4 2024 was $(7.8) million, a decrease from $(6.3) million in Q4 2023, primarily due to changes in share-based compensation and fair value of derivative liabilities [13][19] Guidance and Outlook - The company anticipates Adjusted EBITDA of approximately $(5) to $(6) million for Q1 2025, influenced by seasonal factors such as drug price increases and lower encounter volumes [8] - TOI's outlook for 2025 assumes a largely reopened global market, with potential impacts from any reimplementation of restrictive measures [8] Key Business Metrics - As of December 31, 2024, TOI operated 86 clinics and served approximately 1.9 million patients under value-based contracts [41] - The company reported cash, cash equivalents, and investments totaling $50 million as of December 31, 2024 [7]