The Oncology Institute, Inc. Q3 FY2024 earnings call

• New CFO Rob Carter brings over a decade of health care finance leadership experience, having previously served as SVP of Finance. - Signed 13 new capitation contracts year-to-date, including three in the third quarter across two states for Medical and Radiation Oncology Services. - Achieved certification to begin Radiopharmaceutical Therapy in California radiation oncology practice, targeting December go-live and expecting over $1 million in adjusted EBITDA from these services in 2025. - Revenue grew 21.8% y-o-y driven by 80% growth in oral drug revenue; California pharmacy projects over $75 million in revenue. - Reduced SG&A expenses by 6% y-o-y through cost optimization efforts. - Completed review of strategic alternatives, with the Board deciding to continue growing the business despite interest not meeting value perception. - Addressing NASDAQ listing compliance due to share price below $1 threshold, aiming to regain compliance by December 17, 2024, possibly via reverse stock split.

Consolidated revenue for the third quarter of 2024 was $99.9 million, an increase of 21.8% compared to Q3 2023 and a 1.3% increase compared to Q2 2024. Gross profit in Q3 2024 was $14.4 million, an increase of 10.3% compared to Q2 2024. SG&A including depreciation and amortization was $28.2 million in Q3 2024, which was 28.2% of revenue, an improvement from prior periods. Loss from operations for Q3 2024 was $13.9 million, flat compared to Q3 2023. Net loss for Q3 2024 was $16.1 million, an improvement of $1.3 million compared to Q3 2023. Adjusted EBITDA for Q3 2024 was negative $8.2 million compared to negative $5.3 million in Q3 2023. Cash and cash equivalents balance as of the end of Q3 2024 was $47.4 million, an increase of $1 million compared to Q2 2024.

• Expect significant improvement in net loss in Q4 and beyond due to capitation contracts, with annualized revenue from new caps over $50 million. - Targeting December go-live for Radiopharmaceutical Therapy in California, expecting over $1 million in adjusted EBITDA from these services in 2025. - Confident in strategy to drive operational and financial improvement, leveraging capitation contracts and cost management efforts.

• NASDAQ listing compliance risk: Share price fell below $1 for 30 consecutive business days, given 180-day compliance period ending December 17, 2024, with possibility of reverse stock split. - Reimbursement challenges for Part D drugs, but proactive steps taken to negotiate improved contracts and optimize supply chain costs.