Oncology Institute, Inc.TOI
Oncology Institute, Inc. Leases Disclosure
Leases
The Company leases clinics, office buildings, and certain equipment under noncancellable financing and operating lease agreements that expire at various dates through June 2033. See Note 2 for a summary of the Company’s policies relating to leases.
The initial terms of operating leases range from 1 to 10 years and certain leases provide for free rent periods, periodic rent increases, and renewal options. Monthly payments for these leases range from $0 to $41. All lease agreements generally require the Company to pay maintenance, repairs, property taxes, and insurance costs, which are generally variable amounts based on actual costs incurred during each applicable period.
The Company has determined that periods covered by options to extend the Company's leases are excluded from the lease terms as it is not reasonably certain the Company will exercise such options.
Lease Expense
The components of lease expense were as follows:
| (in thousands) | Year Ended December 31, 2025 | Year Ended December 31, 2024 | ||||||
| Operating lease costs: | $ | 8,450 | $ | 8,558 | ||||
| Finance lease costs: | ||||||||
| Amortization of ROU asset | 36 | 42 | ||||||
| Interest expense | 5 | 8 | ||||||
| Other lease costs: | ||||||||
| Short-term lease costs | 12 | 10 | ||||||
| Variable lease costs | 2,014 | 1,634 | ||||||
| Total lease costs | $ | 10,517 | $ | 10,252 | ||||
Operating and other lease costs are presented as part of selling, general, and administrative expenses. The components of finance lease costs appear in depreciation and amortization and interest expense.
Maturity of Lease Liabilities
The aggregate future lease payments for the Company's leases in years subsequent to December 31, 2025 are as follows:
| (in thousands) | Operating Leases | Finance Leases | ||||||
| 2026 | $ | 8,633 | $ | 39 | ||||
| 2027 | 7,609 | 29 | ||||||
| 2028 | 5,791 | — | ||||||
| 2029 | 4,143 | — | ||||||
| 2030 | 2,419 | — | ||||||
| Thereafter | 1,733 | — | ||||||
| Total future lease payment | $ | 30,328 | $ | 68 | ||||
| Less: amount representing interest | (4,041) | (4) | ||||||
| Present value of future lease payment (lease liability) | $ | 26,287 | $ | 64 | ||||
| Reported as: | ||||||||
| $ | 7,156 | $ | 36 | |||||
| 19,131 | 28 | |||||||
| Total lease liabilities | $ | 26,287 | $ | 64 | ||||
Lease Term and Discount Rate
The following table provides the weighted average remaining lease terms and weighted average discount rates for the Company's leases as of:
| December 31, 2025 | December 31, 2024 | |||||||
| Weighted-average remaining lease term (in years) | ||||||||
| Operating | 4.07 | 4.65 | ||||||
| Finance | 1.71 | 2.64 | ||||||
| Weighted-average discount rate | ||||||||
| Operating | 6.77 | % | 6.59 | % | ||||
| Finance | 6.72 | % | 6.62 | % | ||||
Supplemental Cash Flow Information
The following table provides certain cash flow and supplemental noncash information related to the Company's lease liabilities for the years ended December 31, 2025 and 2024.
| (in thousands) | Year Ended December 31, 2025 | Year Ended December 31, 2024 | ||||||
| Supplemental cash flow information | ||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
| Operating cash payment for operating leases | $ | 8,861 | $ | 8,509 | ||||
| Financing cash payments for finance leases | 42 | 48 | ||||||
| Lease liabilities arising from obtaining right-of-use assets: | ||||||||
| Operating leases | $ | 1,477 | $ | 3,049 | ||||
| Finance leases | — | — | ||||||
During the years ended December 31, 2025 and 2024 , ROU assets of $1,477 and $3,049 were obtained in exchange for lease obligations, respectively.
Lease Modifications
During the year ended December 31, 2025, the Company extended its lease terms for four clinics in California and one clinic in Arizona. These extensions constitute lease modifications that qualify as a change of accounting for the original leases and not separate contracts. Accordingly, for the twelve months ended December 31, 2025, the Company recognized the difference of $1,570 as an increase to the operating lease liability and to the operating lease right-of-use asset, and $17 as a net increase to rent expense.
During the year ended December 31, 2024, the Company extended its lease terms for four clinics in California. These extensions constitute lease modifications that qualify as a change of accounting for the original leases and not separate contracts. Accordingly, in the year ended December 31, 2024, the Company recognized the difference of $1,410 as an increase to the operating lease liability; $1,375, net of lease incentives, as an increase to operating lease right-of-use asset, and $85 as a net increase to rent expense.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
| 2023 | Mar 28, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 11, 2022 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.