Yahoo Finance

• Revenue: Q4 2024 revenue was $100.3 million, a 17% increase from Q4 2023. Full year 2024 revenue was $393 million, up 21.3% from 2023.

• Gross Profit: Q4 2024 gross profit was $14.6 million, a 2% increase from Q4 2023. Full year 2024 gross profit was $54 million, a 9.4% decrease from 2023.

• SG&A Expenses: Q4 2024 SG&A decreased by 12% compared to Q4 2023. Full year 2024 SG&A was $114 million, a $5.6 million decrease from 2023.

• Net Loss: Q4 2024 net loss was $13 million, an improvement of $5.6 million compared to Q4 2023. Full year 2024 net loss was $64.6 million, a decrease of $18.4 million from 2023.

• Adjusted EBITDA: Q4 2024 adjusted EBITDA was negative $7.8 million. Full year 2024 adjusted EBITDA was negative $35.7 million.

• Cash and Cash Equivalents: End of Q4 2024 cash and cash equivalents were $49.7 million, an increase of $2.3 million from Q3 2024.

• Cash Flow from Operations: Q4 2024 positive cash flow from operations was $4.2 million.

• Debt Reduction: Outstanding principal balance of debt reduced from $110 million at year-end to $86 million.

• 2025 Revenue Guidance: Expected revenue of $460 million to $480 million, representing 17% to 22% growth over 2024.

• 2025 Gross Profit Guidance: Expected gross profit of $73 million to $82 million, an increase from $54 million in 2024.

• 2025 Adjusted EBITDA Guidance: Expected range of negative $8 million to negative $17 million, with positive EBITDA anticipated in Q4 2025.

• 2025 Free Cash Flow Guidance: Expected range of negative $12 million to negative $21 million, with cash flow breakeven anticipated in Q4 2025.

• Warning! GuruFocus has detected 7 Warning Signs with TOI.

Release Date: March 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Revenue increased by 21% over the previous year, driven by growth in value-based patient services and pharmacy operations.

• The company signed six new contracts covering over 270,000 lives, expanding its reach and proving its model outside of California.

• Pharmacy and medically integrated dispensaries grew rapidly, with a 73% annualized growth in 2024.

• The company achieved a sequential improvement in adjusted EBITDA in the second half of the year through capitated contract growth and drug margin improvement.

• TOI successfully restructured its facility agreement, reducing outstanding debt and eliminating certain financial covenants, enhancing financial flexibility.

Negative Points

• Overall financial performance in 2024 did not meet expectations, with a net loss of $64.6 million for the year.

• Adjusted EBITDA for Q4 2024 was negative $7.8 million, worse than the negative $6.3 million in Q4 2023.

• Gross profit for 2024 decreased by 9.4% compared to 2023, largely due to lower infusion drug margins and higher clinical payroll costs.

• The company experienced a $3 million onetime reduction in fee-for-service revenue unrelated to Q4 dates of service.

• Despite improvements, the company still anticipates negative adjusted EBITDA for 2025, with expected losses in the first half of the year.