The Oncology Institute, Inc.

Greetings and welcome to the Oncology Institute third quarter 2025 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Mark Heppelheiser. Thank you. You may begin.

The press release announcing the Oncology Institute's results for the third quarter of 2025 are available at the investor section of the company's website, theoncologyinstitute.com. A replay of this call will also be available at the company's website after the conclusion of this call. Before we get started, I would like to remind you of the company's safe harbor language included within the company's press release for the third quarter of 2025. Management may make forward-looking statements, including guidance and underlying assumptions. Forward-looking statements are based on expectations that involve risks and uncertainties that could cause actual results to differ materially. For further discussion of risks related to our business, steer filings with the SEC. This call will also discuss non-GAAP financial measures such as adjusted EBITDA and free cash flow. Reconciliation of these non-GAAP measures to the most comparable GAAP measures are included in the earnings release furnished to the SEC and available on our website. Joining me on the call today are our CEO, Dan Vernick, and our CFO, Rob Carter. Following our prepared remarks, we'll open the call for your questions. With that, I'll turn the call over to Dan.

Thank you, Mark. Good afternoon, everyone, and thank you for joining our third quarter 2025 earnings call. During the third quarter, we were able to build on momentum from the first half of this year, delivering strong results across all areas of the business. including proving out MLR performance on our expanding delegated capitation model in Florida, in addition to other significant pipeline wins, continuing to set records in our pharmacy business, and hitting a big milestone as we achieved adjusted EBITDA profitability for our first month as a public company in September. The combination of these factors provides us with the confidence required to increase our outlook for 2025. Our third quarter revenue of $137 million increased 23% compared to a year ago and was driven by 42% growth in our pharmacy business, as well as 13% year-over-year growth in our fee-for-service business, which outperformed expectations. Adjusted EBITDA loss of $3.5 million in Q3 represents a $4.7 million improvement compared to the same quarter last year. We are reinforcing our expectation to achieve profitability in the fourth quarter and become free cash flow positive in 2026. Turning to our operations, during the quarter, we saw material progress on integration of care and MLR performance in the initial 40,000 delegated capitated lives with our partnership in Florida with Elevance Health. We are expanding this relationship with elephants in Q4 through additional Medicare Advantage lives in Central Florida, which more than doubles our relationship with this payer in less than a year as measured by MA lives under capitation to TOI. Other key milestones achieved in Q3 were expansion of our MSO network in Florida to over 200 providers and growing. as well as the official opening of our TOI Florida pharmacy location, which will serve network providers requiring delivery of Part B drugs, as well as a fast and convenient option for Part D specialty medications for patients and providers alike. We view the Florida pharmacy as incremental growth to our core Part D dispensing strategy, as well as meaningful to our capitated MLR, where we can provide Part B drugs to practices that deliver at our cost. On a full year basis, the new capitation contracts that we have signed across markets over the course of 2025 will contribute an estimated $19 million of full year revenue, a 29% increase to capitated revenue versus full year 2024. We expect margins on these contracts to continue to mature to target over the next few quarters as we see these new patients transition their care and pharmacy needs to our in-network providers, and as we focus on adherence to our care pathways and increased script attachment. Last quarter, I mentioned that we were launching three AI enablement efforts in the coming months to make meaningful changes in performance and costs, specifically in revenue cycle management, prior authorization services, and our patient call center. As an example of how this is now benefiting patients and delivering OPEX efficiencies, we expect our offices at authorizations to be fully transitioned to our agentic AI model in Q4, which will take submission time from 18 minutes to approximately five seconds. and deliver savings per auth of over 80%. This will expand to other authorization functions in 2026 and our early estimate of savings from authorization efficiencies alone could yield up to 2 million of operating expense efficiencies. This frees up hundreds of hours a week for our staff, which can be directed to patient care and yield a more efficient operating model for our organization. I also want to address an 8K that we filed last week related to a cybersecurity incident at one of our key vendors that we utilize for billing and practice management. Due to the incident, we experienced a period where we were unable to bill for fee-for-service claims while we transitioned to a new platform. Thanks to the quick response of our team, we were able to pivot and manage schedules through our EHR and develop an interim billing process, minimizing the impact on our day-to-day operations. importantly despite this incident our patient treatment plans remain intact and we've seen no significant disruption to volume from a timing perspective this event will influence collections in late q4 and early q1 as we catch up on submitted claims but we project ample cash on our balance sheet to manage through this and meet our operating goals for q4 and 2026. heading into the last few months of 2025 i'm excited about the momentum we have built over the last year We continue to prove that our model is profitable across markets and have proven our ability to manage full delegation with health plan partners, which opens a massive new TAM of value-based contract growth in upcoming years. Now, I'll turn the call over to Rob to review the financials. Rob?