Oscar Health Inc - Class A
Q2 2026 Earnings
Includes $164 million of favorable prior period reserve development
Market Reaction
Did OSCR Beat Earnings? Q2 2026 Results
Oscar Health delivered a blowout second quarter, posting GAAP earnings per share of $1.10 against a consensus estimate of $0.38, a beat of 189.17%, as the health insurer swung from a net loss of $228.36 million a year ago to net income of $361.81 million. Revenue climbed 70.4% year over year to $4.88 billion, topping the $4.75 billion consensus by 2.72%, driven by surging membership that reached nearly 2.96 million members as of June 30, up from roughly 2.03 million a year earlier. The GAAP results include $164 million of favorable prior period reserve development, which contributed meaningfully to the quarter's profitability. Perhaps the most telling sign of the company's operational improvement was the medical loss ratio, which fell sharply to 79.2% from 91.1% in Q2 2025, reflecting disciplined pricing and underwriting gains. Oscar raised its full-year earnings from operations outlook to $500 million to $700 million, more than doubling the prior midpoint, while also improving its MLR and SG&A ratio guidance ranges for 2026.
- Disciplined pricing strategy driving improved medical loss ratio from 91.1% to 79.2%
- $164 million of favorable prior period reserve development
- Membership growth to 2,963,002 from 2,027,148 year-over-year
- SG&A expense ratio improvement to 14.2% from 18.7% due to fixed cost leverage and disciplined expense management
- Higher premium rates and membership driving revenue growth
“Oscar delivered record profitability in the first half of the year and we are raising our full-year 2026 guidance. Our superior operating performance and execution against the fundamentals of our strategy are accelerating the individual market. More people are moving between full- and part-time jobs, gig work, and retirement – a shift AI will accelerate. A durable individual market gives them greater choice and will power the future of American healthcare. Oscar's consumer products, disciplined pricing, and scalable technology platform will capture this opportunity and position us for long-term profitable growth.”
Oscar Health CEO, on the earnings call
Forward Guidance & Outlook
Oscar raised its full-year 2026 guidance. Updated total revenue outlook remains $18.7 billion to $19.0 billion. Medical loss ratio outlook improved to 81.5%–82.5% (from 82.4%–83.4%). SG&A expense ratio outlook improved to 15.6%–16.1% (from 15.8%–16.3%). Earnings from operations outlook raised significantly to $500 million–$700 million (from $250 million–$450 million).
OSCR YoY Financials
OSCR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.