Oncology Institute, Inc. Q4 FY2024 earnings call

• Revenue increased 21% over 2023, with value-based patient services seeing strong growth from new contracts and pharmacy/dispensaries growing rapidly (73% annualized growth in 2024). - In 2024, adjusted EBITDA improved sequentially in the second half, with margin improvement from a new drug distributor agreement and reduced SG&A by 12% in Q4 2024. - Strengthened balance sheet through a $20 million principal paydown of debt and a $16.5 million private placement. - Focus on operational excellence, cost optimization across supply chain, and strategic market expansion, including growth in new markets like Florida.

Consolidated revenue for Q4 2024 was $100.3 million, an increase of 17% compared to Q4 2023. Gross profit in Q4 2024 was $14.6 million, an increase of 2% compared to Q4 2023. SG&A in Q4 2024 was decreased by 12% versus Q4 2023. For the full year 2024, consolidated revenue was $393 million, an increase of 21.3% compared to 2023. Gross profit for 2024 was $54 million, a decrease of 9.4% compared to 2023. SG&A, including depreciation and amortization, was $114 million in 2024, a decrease of $5.6 million compared to 2023. Adjusted EBITDA for Q4 2024 was negative $7.8 million compared to negative $6.3 million in Q4 2023, and for full year 2024 was negative $35.7 million.

• 2025 revenue expected to be $460 million to $480 million (17%-22% growth over 2024). - Gross profit expected in the range of $73 million to $82 million. - Adjusted EBITDA expected in the range of negative $8 million to negative $17 million, with progression to profitability in the second half of 2025. - Free cash flow guidance negative $12 million to negative $21 million for full year 2025, with cash flow breakeven expected in Q4 2025.

Q: For 2025 guidance, what are the significant moving factors? Do you need to sign new contracts to get the revenue and gross profit goal?

A: Rob Carter stated several factors contribute to 2025 guidance, including growth in capitation contracts, organic growth in fee-for-service and dispensary. Need to hit on all these to reach targets.

Q: Could you give individual line item breakout of revenue expectations for patient services, dispensary, and clinical trial?

A: Rob Carter mentioned at this point they are not guiding to specific segments, but capitation is the greatest contributor to profitability followed by dispensary and then fee-for-service, with organic growth expected from both dispensary and fee-for-service driven by the capitation pipeline.