The Oncology 2025 Q2 Earnings Mixed Performance with Improved EPS, Widening Net Loss

The Oncology (TOI) reported its fiscal 2025 Q2 earnings on August 13, 2025, with revenue rising 21.5% year-over-year and earnings per share improving, though net losses expanded. The company maintained its full-year guidance but did not revise it based on the quarter's results.

The Oncology’s total revenue increased by 21.5% to $119.80 million in Q2 2025, compared to $98.58 million in Q2 2024. The strong performance was driven by the dispensary segment, which contributed $62.57 million, while patient services added $55.89 million. Additional operating revenue of $1.34 million came from clinical trials and other services, rounding out total operating revenue to $119.80 million.

The company narrowed its per-share loss to $0.15 in Q2 2025, an 11.8% improvement from $0.17 in Q2 2024. However, the net loss widened to $17.01 million, reflecting a 9.9% increase from the $15.48 million loss in the prior-year quarter. This suggests that while the loss per share improved, total losses grew, signaling mixed financial performance.

Following the earnings release, The Oncology’s stock edged down 0.00% during the latest trading day, but it rose 0.74% during the most recent full trading week. Month-to-date, the stock surged 27.73%, indicating strong near-term momentum.

The strategy of buying TOI shares after an earnings beat and selling after 30 days underperformed significantly, delivering a -19.15% return compared to a 46.32% return for the benchmark. The strategy’s CAGR was -7.08%, with a Sharpe ratio of -0.05, highlighting a high-risk, low-reward scenario for investors using this approach.

CEO Daniel Virnich highlighted a strong second quarter for The Oncology, with over 20% year-over-year revenue growth driven by pharmacy and fee-for-service operations. He noted robust growth in capitated partnerships, including 50,000 new capitated lives in Nevada and California and 40,000 Medicare Advantage lives in Florida. The CEO emphasized disciplined cost management, margin improvements, and key leadership additions to support AI-enabled operations and the delegated model.

The Oncology reconfirmed its full-year 2025 revenue guidance of $460 million to $480 million, with expectations to reach the upper end of the range. Adjusted EBITDA guidance was set between a loss of $17 million and $8 million, with a line of sight to the midpoint. Sequential revenue growth is anticipated in Q3 and Q4, fueled by new risk contracts and pharmacy expansion. Adjusted EBITDA is expected to improve, with Q3 losses projected between $2.5 million and $3.5 million and positive results anticipated in Q4.

Additional News
In Nigeria, the Punch newspaper reported on several key developments in the week following The Oncology's earnings release. The House of Representatives launched an investigation into the NG-CARES program, citing concerns over its $1.06 trillion allocation and limited impact. Meanwhile, the Federal Government praised Nigeria’s national basketball team, D’Tigers, after their 77-59 victory over Madagascar at AfroBasket. In a significant defense deal, the U.S. approved the sale of bombs and other military equipment worth $346 million to Nigeria. Additionally, the Nigerian Air Force faced internal divisions over the appointment of an aviation ambassador, sparking debate among pilots. Lastly, Dangote Refinery resolved part of the fuel distribution controversy by reinstating marketers under pressure from stakeholders. These developments highlight a mix of political, economic, and infrastructure-related news shaping Nigeria’s business landscape.