The Oncology Institute Reports Fourth Quarter and Full Year 2024 Financial Results and Guidance for 2025

The Oncology Institute Reports Fourth

Quarter and Full Year 2024 Financial Results and Guidance for 2025

CERRITOS, Calif., March 24,

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 fourth quarter and year ended December 31, 2024.

Recent Operational Highlights

Fourth Quarter 2024 Financial Highlights

Management Commentary

Daniel Virnich, CEO of TOI, commented, "I am very pleased with

our performance in the fourth quarter of 2024. We were able to reduce our cash burn and generate positive cash flow from operations for

a second consecutive quarter, driven by disciplined working capital management. Additionally, both dispensary and value-based patient

services are gaining widespread adoption in the marketplace, as we build around the chassis of our fee-for-service patient services business.

As we enter 2025, we will continue to build on our momentum through strong operational management, increased efficiencies, and strategic

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, 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.

The Company expects Adjusted EBITDA of approximately

$(5) to $(6) million in the first quarter of 2025 primarily due to seasonal factors such as new year drug price increases and 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.

Quarter 2024 Results

Consolidated revenue

for Q4 2024 was $100 million, an increase of 16.9% compared to Q4 2023, and a 0.4% increase compared to Q3 2024. The increase is driven

primarily by our dispensary revenue due to our California based pharmacy, which continues to exceed fill expectations.

services was $50 million, down 10.6% compared to Q4 2023. The decrease in patient services was due to the loss of a large contract in

July 2024. Dispensary revenue increased 72.4% compared to Q4 2023 due to an increase in the number of filled prescriptions and an increase

in the average revenue per filled prescription. Clinical trials & other revenue increased by 22.5% compared to Q4 2023 primarily due

to an increase in Proposition 56 revenue and TOI Clinical Research revenue.

2024 was $15 million, an increase of 1.8% compared to Q4 2023. 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 Q4 2024 were $25 million or 24.8% of revenue, compared with $28 million, or 32.7%

of revenue, in Q4 2023. The decrease in SG&A is a direct result of our ongoing efforts to streamline operations, improve efficiency,

and optimize our overhead resourcing. Through selective outsourcing, planned attrition, and modest downsizing, we have been able to lower

operating costs without compromising the quality of care or service we deliver.

Net loss for Q4 2024

was $13.2 million, a decrease of $5.6 million compared to Q4 2023 primarily due to an increase in operating revenue and decrease in SG&A

expenses, offset by a decreased change in fair value of derivative liabilities.

Adjusted EBITDA was $(7.8)

million, a decrease of $1.6 million compared to Q4 2023, primarily as a result of a decrease in share-based compensation and the change

in fair value of derivative liabilities.

for the Year Ended December 31, 2024

Consolidated revenue

for the year ended December 31, 2024 was $393 million, an increase of 21.3% compared to the prior year, driven by the contribution

of our CA based pharmacy.

services was $205 million, a decrease of 4.0% year-over-year, due to the loss of a contract earlier in 2024, offset by new contracts in

the latter half of 2024. Dispensary revenue increased 73.3% compared to the comparable prior year period due to an increase in the average

revenue per filled prescription. Clinical trials & other revenue increased by 24.8% compared to the prior year period due to an increase

in miscellaneous contract revenue.

the year ended December 31, 2024 was $54 million, a decrease of 9.4% year-over-year. The loss in gross profit is largely attributed

to the impacts of industry wide compression of margins on Part D medications, related to changes in DIR fee assessment.

excluding depreciation and amortization, for year ended December 31, 2024 were $108 million or 27.4% of revenue, compared with $114

million, or 35.1% of revenue, in the prior year. The decrease was primarily due to cost-management efforts to streamline operations and

year ended December 31, 2024 was $64.7 million, a decrease of $18.4 million compared to the prior year, primarily due to the increase

in gross profit and the change in the fair value of the warrant, earnout and conversion option derivative liabilities, offset by the goodwill

impairment charge and increased operating expenses.

Adjusted EBITDA was $(35.7)

million, a decrease of $9.9 million compared to the prior year, primarily as a result of the change in fair value of the warrant, earnout

and conversion option derivative liabilities.

Webcast and Conference Call

TOI will host a conference call on Tuesday,

March 25, 2025 at 5:00 p.m. (Eastern Time) to discuss fourth quarter and full year results and management's outlook for future financial

and operational performance.

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 13750791. The replay will be available until April 1, 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 and its affiliates

are 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 approximately 120+ employed clinicians and more than 700 teammates

at approximately 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 Q1 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