The Oncology Institute, Inc. (TOI) Q3 2025 Earnings Call Transcript
Revenue Third quarter revenue of $137 million increased 23% compared to a year ago, driven by 42% growth in the Pharmacy business and 13% year-over-year growth in the fee-for-service business.
Adjusted EBITDA Adjusted EBITDA loss of $3.5 million in Q3 represents a $4.7 million improvement compared to the same quarter last year.
Capitated Revenue Capitated revenue increased 38.9% year-over-year, contributing to patient services revenue growth.
Pharmacy Revenue Pharmacy revenue was $75.9 million, representing 55.6% of total revenue and increased 57.4% year-over-year due to higher prescription volumes and greater pharmacy attachment within the network.
Gross Profit Gross profit was $18.9 million for the quarter compared to $14.4 million in the third quarter of 2024. Normalized for a $1.8 million reserve adjustment, gross profit would have been $20.7 million.
SG&A Expenses SG&A expenses (excluding depreciation and amortization) were $25.3 million or 18.5% of revenue, down from 26.7% of revenue a year ago, reflecting cost discipline and technology efficiencies.
Cash Flow from Operations Cash flow from operations was negative $27.8 million, improving 9.5% from the prior year, reflecting investments in drug inventory and working capital to support scaling dispensing activity.
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M33 Growth Partners with US Neurology Associates to Transform Neurology Care
- Strategic Partnership: M33 Growth partners with US Neurology Associates to enhance the quality of neurology care by integrating resources and infrastructure to meet the growing patient demand.
- Leadership Team: Nitin Jain as CEO and Brad Hively as Chairman bring extensive management experience in healthcare, which will drive the company's growth.
- Innovative Care Platform: USNA will deliver comprehensive care including in-office infusions, diagnostics, and clinical trials, aiming to improve patient experience and reduce care costs through a one-stop service.
- Value-Oriented Approach: USNA is committed to collaborating with payers to promote value-based care models, aiming to provide efficient and cost-effective neurology solutions through integrated community clinics.
The Oncology Institute Appoints New CIO and CPO to Enhance Leadership in Value-Based Cancer Care
- Leadership Changes: The Oncology Institute has appointed Rakesh Panda as Chief Information Officer, leveraging over 25 years of IT and digital transformation experience to advance the company's technology strategy, particularly in AI and data privacy, aimed at enhancing value-based cancer care.
- HR Strengthening: Nolan Mariano has been appointed Chief People Officer, overseeing HR operations and talent acquisition, and with 18 years of industry experience, he will enhance company culture and employee development to support the rapid growth of The Oncology Institute.
- Technology-Driven Care Platform: The new CIO will focus on the technology-enabled care delivery platform, driving innovations to improve patient experience and care quality, thereby strengthening the company's competitive position in the cancer care market.
- Sustained Growth Strategy: CEO Daniel Virnich emphasized the promotion of internal leaders, indicating the company's commitment to providing world-class community-based cancer care while continuing to experience rapid growth, further solidifying its leadership position in the industry.
