American Oncology Network Reports 37.5% Revenue Growth to $1.76 Billion for Fiscal Year 2024

American Oncology Network, Inc. (AON) reported significant financial growth for the fiscal year ending December 31, 2024, with total revenue reaching $1.76 billion, a 37.5% increase from $1.28 billion in 2023. This growth was primarily driven by a 37.8% rise in patient service revenue, which amounted to $1.74 billion, attributed to a 21.4% increase in patient encounters and a 13.5% increase in revenue per encounter. The company also noted a 15.1% increase in other revenue, totaling $15.5 million, largely due to growth in data contracts and service arrangements.

Operating expenses for AON also increased, totaling $1.78 billion, up 33.8% from the previous year. The cost of revenue rose by 37.2% to $1.64 billion, primarily due to increased drug costs and higher patient encounter volumes. General and administrative expenses increased by 33.0% to $133.9 million, reflecting the company's expansion efforts. Notably, transaction expenses decreased significantly from $31.2 million in 2023 to $1.3 million in 2024, as costs associated with the Business Combination and delisting from Nasdaq were incurred in the prior year.

AON's operational footprint expanded to 37 practices across 20 states and the District of Columbia, with a total employee count of approximately 1,914, including 266 physicians and advanced practice providers. The company has made strategic investments in technology and infrastructure to support its growth, including a fully integrated electronic health record system and a centralized specialty pharmacy. The company also engaged in two acquisitions in 2024, further enhancing its service offerings and market presence.

Despite the growth, AON reported a net loss of $26.96 million for 2024, an improvement from a loss of $63.15 million in 2023. The company attributed this loss to ongoing investments in expansion and operational costs. AON's management expressed confidence in the company's future, citing a strong market position and a focus on enhancing patient care through community-based oncology management. The company anticipates continued growth driven by demographic trends and the increasing demand for oncology services.

Looking ahead, AON plans to leverage its integrated technology platform and expand its network of practices through acquisitions and organic growth. The company is also focused on improving operational efficiencies and enhancing patient care quality, which it believes will support its long-term growth strategy.