1) Strong Financial Performance - Revenue for Q1 2026 reached $147 million, a 41% YoY increase, driven by growth in capitated revenue and a record performance in Specialty Pharmacy. - Specialty Pharmacy revenue was $87.5 million, up 78% YoY, with a gross profit of $16.8 million and a gross margin of 19.2%. - Adjusted EBITDA loss improved to $2.4 million, compared to a loss of $5.1 million in Q1 2025, reflecting operational efficiencies and growth momentum.

2) Operational Expansion and Strategy - TOI is expanding its capitated model in Florida, targeting 200,000 Medicare Advantage lives across 25 counties by Q3 2026. - The company is opening 7 new clinics in Florida to support this expansion and enhance patient care. - A proprietary provider portal is set to launch in Q3 2026, aimed at improving provider engagement and adherence to clinical pathways.

3) Cost Management and Efficiency Initiatives - Total SG&A expenses were $28.2 million, representing 19.1% of total revenue, a significant improvement from 24.3% in the prior year. - TOI is on track to achieve $2 million in operating expense savings through AI integration in revenue cycle management and other operational areas.

4) Guidance and Outlook - Full-year 2026 revenue guidance is reaffirmed at $630 million to $650 million, with an adjusted EBITDA forecast of $0 to positive $9 million. - Free cash flow projections have been updated to a positive range of $5 million to $15 million, reflecting improved vendor negotiations and operational efficiencies.

5) Market and Competitive Position - The company is experiencing strong momentum in its delegated capitation model, with profitability achieved in Florida. - There is potential for additional partnerships with health plans in Florida and other markets, indicating ongoing growth opportunities. - Further details on the competitive landscape and comparisons with other providers, such as Evolent Health, were not fully explored in the call.

Bottom line: TOI is demonstrating robust growth and operational improvements, with a strong outlook for 2026 driven by strategic expansions and efficiency initiatives. The company’s focus on value-based care and technology integration positions it well for sustainable profitability, making it an attractive proposition for shareholders.