The Oncology Institute, Inc. — Cyborg Score 7/10

Strong
Healthcare Services

Strategic Profile

In Q1 2026, TOI delivered 41% year-over-year revenue growth, driven in part by strong capitated revenue growth and record performance in its pharmacy business. For 2026, TOI anticipates total revenue in the range of $630–650 million, reflecting 28% growth from midpoint 2025 guidance, including approximately $150 million of Capitation revenue, reflecting continued expansion of delegated contracts in Florida and organic growth. Management projects annual revenue growth of approximately 20% through 2028, with Capitation and Dispensary revenue growing to 30% and 50% of total revenue respectively, reflecting migration toward comprehensive oncology care in a value-based landscape and expanding margins to the mid-single-digit range as a percentage of revenue.

Cyborg Score Rationale

Q1 2026 delivered 41% YoY revenue growth and Florida reached profitability, marking an important maturation milestone in capitated relationships. The company is executing a clear value-based care transition with strong growth trajectories and newly reachable profitability targets, though execution risk remains on delegated contract ramp and market adoption.

Top Insights

  • Specialty Pharmacy achieved record Part D fills in Q1 2026, driving 78% revenue growth YoY, reflecting volume growth and improved attachment rates.
  • Medicare Advantage capitation footprint is expanding aggressively, reaching 200,000 lives across 25 Florida counties effective July 1, 2026.
  • In 2025, TOI initiated 9 new capitated contracts representing approximately 260,000 additional lives under management across California, Florida, and Nevada.
  • TOI saved approximately $2 million in Medicare spending under the CMS Enhancing Oncology Model, demonstrating clinical-model ROI and differentiation.

Named Competitors

  • UnitedHealth Group Oncology Services — Integrated oncology care through health insurance and care delivery
  • CVS Health Oncology — Oncology and specialty care through retail and health services integration
  • Elevance Health Capitated Programs — Medicare Advantage capitation partner in Florida and other states
  • Regional Oncology Networks — Community-based oncology group networks competing on local care delivery

Recent Developments

  • (May 2026) Q1 2026 financial results showed 41% YoY revenue growth, specialty pharmacy record performance, and Florida profitability milestone
  • (April 2026) Announced Chief Legal Officer appointment (Minh Merchant) as part of executive team strengthening
  • (March 2026) FY 2025 results reported with new capitation contract expansion and Medicare Advantage growth across multiple states
  • (January 2026) Reaffirmed 2025 guidance and provided 2026 preliminary outlook targeting $630–650M revenue with first positive EBITDA since IPO

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