The Oncology Institute Reports First Quarter 2025 Financial Results and Reaffirms Full Year 2025 Guidance

The Oncology Institute Reports First

Quarter 2025 Financial Results and Reaffirms Full Year 2025 Guidance

Calif., May 14, 2025 -- The Oncology Institute, Inc. (NASDAQ: TOI) ("TOI" or the "Company"), one of the largest

value-based community oncology groups in the United States, today reported financial results for its three months ended March 31,

Operational Highlights

First Quarter 2025 Financial Highlights

Management Commentary

Daniel Virnich, CEO of TOI, commented, "We are pleased to report

a strong start to 2025, driven by disciplined operational management, increased efficiencies, and strategic market expansion. We are executing

against a near-term path to sustained cash flow positivity and profitability in the second half of 2025. We believe our growth momentum

positions TOI for full year profitability in 2026, supported by continued strength in value-based contract wins, organic FFS growth, and

pharmacy expansion. We see continued acceleration in our near-term capitation pipeline, with anticipated new capitation contracts in the

first half of 2025 projected to add approximately $50 million in new revenue on an annualized basis, with line of sight to an additional

100,000 lives in the second half of the year."

EBITDA and Free Cash flow, each a non-GAAP metric, as an additional tool to assess its operational and financial performance. See "Financial

Information: Non-GAAP Financial Measures" below. In reliance on the unreasonable efforts exception provided under Regulation S-K,

TOI is not reasonably able to provide a quantitative reconciliation for forward-looking information of Adjusted EBITDA and Free Cash Flow

to net (loss) income and net cash provided by operations, respectively, the most directly comparable GAAP financial measures, without

unreasonable efforts due to uncertainties regarding taxes, capital expenditures, operating activities, share-based compensation, goodwill

impairment charges, change in fair value of liabilities, unrealized (gains) losses on investments, practice acquisition-related costs,

consulting and legal fees, transaction costs and other non-cash items. The variability of these items could have an unpredictable, and

potentially significant, impact on TOI's future GAAP financial results. Consequently TOI reaffirms its full year 2025 guidance:

Adjusted EBITDA of approximately $(4) to $(5) million in the second quarter of 2025 primarily due to stabilization of our contracts and

initial lower encounter volumes. TOI's achievement of the anticipated results is subject to risks and uncertainties, including those disclosed

in its filings with the U.S. Securities and Exchange Commission. The outlook does not take into account the impact of any unanticipated

developments in the business or changes in the operating environment, nor does it take into account the impact of TOI's acquisitions,

dispositions or financings. TOI's outlook assumes a largely reopened global market, which would be negatively impacted if closures or

other restrictive measures persist or are reimplemented.

Consolidated revenue

for Q1 2025 was $104.4 million, an increase of 10.3% compared to Q1 2024.

services was $53.1 million, up 1.2% compared to Q1 2024. Notably, we also saw our fee for service business return to growth during the

first quarter, increasing 2.3% to $35.6 million in Q1 2025 versus the prior year period. We are encouraged by the positive patient and

referral feedback on TOI's services, and our strong track record for high quality care combined with our value-oriented model gives us

confidence in our continued FFS growth driven by patient choice and health system and community providers' patient referrals. Dispensary

revenue increased 24.2% compared to Q1 2024 due to continued growth in the attachment of prescriptions to our patient visits.

2025 was $17.2 million, an increase of 44.1% compared to Q1 2024. The increase is attributed to improvement in revenue and margin in both

Capitation and Fee For Service within Patient Services, as well as improvement in both revenue and margin in TOI's Dispensary segment.

Margin improvement in the first quarter for both Patient Services and Dispensary businesses is primarily related to the contribution of

our dispensary segment and the recognition of a one-time rebate recognized over the past two quarters related to the renewal of a three-year

contract with TOI's primary drug supplier that is not expected to recur in future quarters, although we do expect the benefit of

drug price increases to improve over the course of 2025. Gross profit is calculated by subtracting direct costs of patient services, dispensary,

and clinical trials and other from consolidated revenues.

and administrative ("SG&A") expenses in Q1 2025 were $25.4 million or 24.3% of revenue, compared with $28.5 million, or

30.1% of revenue, in Q1 2024. The decrease in SG&A expenses was due to our cost discipline and operational efficiency.

Net loss for Q1 2025

was $19.6 million, an increase of $303 thousand in income compared to Q1 2024. The decrease in loss from operations from the prior year

quarter was offset primarily by the increase in non-cash interest expense (write down related to the partial prepayment of convertible

note) and the change in the fair value of the conversion option derivative liability (non-cash).

$(5.1) million, an increase of $5.8 million compared to Q1 2024.

equivalents used in operating activities was $(5.0) million for Q1 2025. Free Cash Flow was $(4.0) million, compared to $(15.4) million

TOI will host a conference call on Wednesday,

May 14, 2025 at 5:00 p.m. (Eastern Time) to discuss first quarter results and management's outlook for future financial and operational

The conference call can be accessed live

over the phone by dialing 1-877-407-0789, or for international callers, 1-201-689-8562. A replay will be available two hours after the

call and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the live call and the

replay is 13752832. The replay will be available until Wednesday, May 21, 2025.

Interested investors and other parties

may also listen to a simultaneous webcast of the conference call by logging onto the Investor Relations section of TOI's website at https://investors.theoncologyinstitute.com.

About The Oncology Institute, Inc.

Founded in 2007, TOI is advancing oncology

by delivering highly specialized, value-based cancer care in the community setting. TOI offers cutting-edge, evidence-based cancer care

to a population of approximately 1.9 million patients including clinical trials, transfusions, and other services traditionally associated

with the most advanced care delivery organizations. With nearly 120 employed clinicians and more than 700 teammates in over 70 clinic

locations and growing, TOI is changing oncology for the better. For more information visit www.theoncologyinstitute.com.

Forward-Looking Statements

This press release includes certain statements

that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private

Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "preliminary,"

"believe," "may," "will," "estimate," "continue," "anticipate,"

"intend," "expect," "should," "would," "plan," "project," "predict,"

"potential," "guidance," "approximately," "seem," "seek," "future,"

"outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical

matters. These forward-looking statements include, but are not limited to, statements regarding projections, anticipated financial results,

estimates and forecasts of revenue and other financial and performance metrics and projections of market opportunity and expectations.

These statements are based on various assumptions and on the current expectations of TOI and are not predictions of actual performance.

These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied

on by anyone as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances

are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of

TOI. These forward-looking statements are subject to a number of risks and uncertainties, including the accuracy of the assumptions underlying

the 2025 full fiscal year outlook and the Q2 2025 outlook with respect to Adjusted EBITDA discussed herein, the outcome of judicial and

administrative proceedings to which TOI may become a party or investigations to which TOI may become or is subject that could interrupt

or limit TOI's operations, result in adverse judgments, settlements or fines and create negative publicity; changes in TOI's

patient or payors' preferences, prospects and the competitive conditions prevailing in the healthcare sector; failure to continue to meet

stock exchange listing standards; the impact of COVID-19 on TOI's business; those factors discussed in the documents of TOI filed,

or to be filed, with the SEC, including the Item 1A. "Risk Factors" section of TOI's Annual Report on Form 10-K for the year

ended December 31, 2024 filed with the SEC on March 26, 2025 and any subsequent Quarterly Reports on Form 10-Q or Current Reports on Form

8-K. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these

forward-looking statements. There may be additional risks that TOI currently is evaluating or does not presently know or that TOI currently

believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition,

forward-looking statements reflect TOI's plans or forecasts of future events and views as of the date of this press release. TOI

anticipates that subsequent events and developments will cause TOI's assessments to change. TOI does not undertake any obligation

to update any of these forward-looking statements. These forward-looking statements should not be relied upon as representing TOI's

assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking

Financial Information; Non-GAAP Financial

Some of the financial information and

data contained in this press release, such as Adjusted EBITDA and Free Cash Flow, have not been prepared in accordance with United States

generally accepted accounting principles ("GAAP"). TOI's non-GAAP financial measures may be different from non-GAAP

financial measures used by other companies. The presentation of non-GAAP financial measures is not intended to be considered in isolation

or as a substitute for, or superior to, financial measures determined in accordance with GAAP. Because of the limitations of non-GAAP