Oncology Institute reported Q3 2025 revenue of $136.6 million, a 36.7% year‑over‑year increase that surpassed analyst estimates of $122.25 million by $14.35 million, an 11.7% beat. The surge was largely driven by a 57.4% jump in pharmacy revenue and a 21% rise in patient‑services revenue, reflecting strong demand for its core oncology services.
The company posted an earnings‑per‑share loss of $0.14, missing the consensus estimate of $0.12 by $0.02. The EPS miss was largely due to higher operating expenses and a $1.8 million reserve against fee‑for‑service revenue, which compressed margins and offset the revenue growth.
Gross profit reached $18.9 million, with a gross margin of 13.9% versus 14.4% in the prior year. The slight compression was driven by the reserve and higher cost of goods sold; when the reserve is excluded, the normalized margin rises to 15.2%.
Management raised full‑year 2025 revenue guidance to $495 million–$505 million from the previous $485 million–$495 million range, signaling confidence in sustained demand. Adjusted EBITDA guidance was narrowed to a loss of $11 million–$13 million, but the company expects to break even on adjusted EBITDA in Q4 2025 and achieve positive adjusted EBITDA in 2026.
CEO Daniel Virnich highlighted record pharmacy performance, AI‑driven efficiencies, and confidence in the raised guidance, while CFO Rob Carter noted strong revenue growth and improved adjusted EBITDA, underscoring progress toward profitability.
Investors reacted positively to the revenue beat and guidance lift, with analysts noting the company’s ability to scale pharmacy and patient services while managing costs, despite the EPS miss.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.