Oncology Institute (NASDAQ:STLN) Announces Quarterly Earnings Results

Oncology Institute (NASDAQ:STLN) issued its quarterly earnings data on Thursday. The company reported ($0.13) earnings per share for the quarter, missing the consensus estimate of ($0.07) by ($0.06), Zacks reports. The business had revenue of $169.77 million for the quarter.

Here are the key takeaways from Oncology Institute’s conference call:

• Third-quarter revenue rose 24.3% year over year to $169.8 million, and Adjusted EBITDA was positive $3.4 million, above the company’s guidance. Starling reaffirmed full-year 2026 Adjusted EBITDA positivity and expects $4 million–$6 million for the year.
• Specialty pharmacy revenue increased 44% to $109.3 million, with gross margin reaching 24.2%. Management attributed part of the margin strength to rebates and favorable drug pricing that may not recur, and expects margins to normalize in the high teens.
• Capitated revenue grew 39.5% to $28.7 million, but expansion with Florida health plan partners has been delayed for timing and operational reasons. Starling said it still expects capitated revenue to grow 100% in 2027, while reserving full guidance until the first quarter.
• Early Starling Nexus results showed more than 99.2% utilization-management compliance across over 4,000 Florida authorizations, with average decisions in 13 hours. The portal is live across delegated markets, including Oregon, and the company sees potential to expand pharmacy and other ancillary services through it.
• Cash flow improved substantially: operating cash flow was positive $19.9 million for the first nine months, versus a $27.8 million use a year earlier, and nine-month free cash flow was positive $20.2 million. The company ended the quarter with $36.9 million in cash and guided to full-year free cash flow of $5 million–$10 million.

Oncology Institute Stock Performance

Oncology Institute stock traded down $1.69 during trading hours on Friday, reaching $5.01. 1,820,317 shares of the stock were exchanged, compared to its average volume of 1,733,065. The company has a market cap of $495.58 million, a P/E ratio of -16.94 and a beta of 0.44. Oncology Institute has a twelve month low of $2.32 and a twelve month high of $7.13. The stock has a 50 day moving average price of $6.49.

Insider Activity

In other news, Director Brad Hively sold 298,853 shares of the company’s stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $6.51, for a total transaction of $1,945,533.03. Following the completion of the sale, the director owned 411,976 shares of the company’s stock, valued at approximately $2,681,963.76. This represents a 42.04% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Jorey Chernett purchased 12,000 shares of Oncology Institute stock in a transaction that occurred on Friday, August 14th. The shares were purchased at an average price of $6.54 per share, for a total transaction of $78,480.00. Following the transaction, the insider directly owned 10,660,858 shares in the company, valued at $69,722,011.32. This represents a 0.11% increase in their position. The SEC filing for this purchase provides additional information. 4.40% of the stock is owned by company insiders.

Analysts Set New Price Targets

A number of research firms have recently weighed in on STLN. BTIG Research lifted their price target on shares of Oncology Institute from $9.00 to $10.00 and gave the company a “buy” rating in a research report on Friday. Needham & Company LLC raised their price objective on Oncology Institute from $7.00 to $9.00 and gave the stock a “buy” rating in a research note on Wednesday, October 14th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Oncology Institute in a report on Tuesday. Four research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $9.25.

About Oncology Institute

The Oncology Institute is a value-based oncology care company focused on delivering comprehensive cancer treatment and related services through community-based care settings. Its model is designed to support patients throughout the cancer-care journey while coordinating treatment among oncologists, primary-care providers, specialists and other healthcare professionals.

The company provides medical oncology and hematology services, cancer screening and diagnosis, treatment planning, chemotherapy and other infusion therapies, supportive care, survivorship services and care-management programs.