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Dec 31, 2024

Oncology Institute Q4 2024 Earnings Report

The Oncology Institute reported fourth quarter results with strong revenue growth driven by dispensary performance but continued to post a net loss.

Key Takeaways

The Oncology Institute achieved $100 million in revenue for Q4 2024, representing a 16.9% year-over-year increase. Dispensary revenue saw significant growth, while patient services declined due to the loss of a major contract. The company reported a net loss of $13.2 million for the quarter and continues to improve operational efficiency and cash flow.

Generated $100 million in revenue, up 16.9% from Q4 2023.

Patient services revenue declined 10.6% year-over-year due to a lost contract.

Dispensary revenue increased by 72.4% year-over-year, driven by California pharmacy performance.

Reported a net loss of $13.2 million for the quarter.

Total Revenue
$100M
Previous year: $85.8M
+16.6%
EPS
-$0.14
Previous year: -$0.21
-33.3%
Clinics
86
Markets
16
Lives Under VBC
1.9M
Previous year: 1.8M
+5.6%
Gross Profit
$15M
Previous year: $12.8M
+17.2%
Cash and Equivalents
$49.7M
Previous year: $82.9M
-40.1%
Total Assets
$173M
Previous year: $209M
-17.5%

Oncology Institute

Oncology Institute

Oncology Institute Revenue by Segment

Forward Guidance

For fiscal year 2025, The Oncology Institute projects revenue between $460 million and $480 million, with improved gross profit and operational efficiency despite seasonal challenges.

Positive Outlook

  • Projected 2025 revenue of $460 to $480 million.
  • Expected gross profit between $73 million and $82 million for FY 2025.
  • Continued growth in dispensary and value-based services.
  • Operational efficiencies and cost optimizations to continue.
  • Expansion into new markets and contracts expected to drive growth.

Challenges Ahead

  • Anticipated Q1 2025 Adjusted EBITDA loss of $5 to $6 million due to seasonal factors.
  • Industry-wide compression of margins on Part D medications.
  • Loss of a large contract impacting patient services revenue.
  • High SG&A expenses continue to weigh on profitability.
  • Dependency on volume-based supplier agreements and contract renewals.

Revenue & Expenses

Visualization of income flow from segment revenue to net income