Oscar Health

OSCR Q2 2025 Earnings

Reported Aug 6, 2025 at 6:06 AM ET · SEC Source

Q2 25 EPS

$-0.89

MISS 6.46%

Est. $-0.84

Q2 25 Revenue

$2.86B

MISS 1.87%

Est. $2.92B

vs S&P Since Q2 25

+94.0%

BEATING MARKET

OSCR +109.9% vs S&P +15.9%

Market Reaction

Did OSCR Beat Earnings? Q2 2025 Results

Oscar Health delivered a bruising second quarter, missing on both the top and bottom lines as a surge in medical costs overwhelmed what was otherwise a strong growth story. The health insurer posted a net loss of $0.89 per diluted share, coming in 6.… Read more Oscar Health delivered a bruising second quarter, missing on both the top and bottom lines as a surge in medical costs overwhelmed what was otherwise a strong growth story. The health insurer posted a net loss of $0.89 per diluted share, coming in 6.46% below the consensus estimate of $0.84, while revenue of $2.86 billion fell 1.87% short of the $2.92 billion Wall Street expected, even as the top line climbed 29.0% year over year. The culprit was a dramatic deterioration in the medical loss ratio, which ballooned to 91.1% from 79.0% a year ago, driven by higher average market morbidity and a net risk adjustment transfer accrual that swelled to $692.25 million from $432.89 million in Q2 2024, flipping a $67.81 million operating profit into a $230.48 million operating loss. Membership growth to roughly 2.0 million members provided little cushion against those headwinds, prompting questions about where OSCR's valuation stands. CEO Mark Bertolini characterized 2025 as a market reset year and reaffirmed full-year guidance, projecting a return to profitability in 2026.

Key Takeaways

  • Higher membership drove revenue growth with total members increasing to 2,027,148 from 1,580,725 year-over-year
  • Medical loss ratio increased to 91.1% from 79.0% due to increased average market morbidity and higher net risk adjustment transfer accrual
  • SG&A expense ratio improved to 18.7% from 19.6% due to lower exchange fee rates and greater fixed cost leverage
  • Risk adjustment transfers increased significantly to $692.2 million from $432.9 million in Q2 2024
  • Direct policy premiums grew to $3.48 billion from $2.54 billion year-over-year
24/7 Wall St

OSCR YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

“We believe the individual market has long-term upside and is the future of healthcare. Oscar is well-positioned to manage through the market reset in 2025. We believe the market will stabilize next year, and expect to return to profitability in 2026. We are building the individual market into a healthcare marketplace for more consumers and businesses, and continue to position the company for long-term growth.”

— Mark Bertolini, Q2 2025 Earnings Press Release