Oscar Health Inc - Class A
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.54%.
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 6.46% 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 <a href="https://247wallst.com/investing/2025/07/20/is-20-a-fair-valuation-for-oscar-healthoscr-or-a-stretch-too-far/">where OSCR's valuation stands</a>. CEO Mark Bertolini characterized 2025 as a market reset year and reaffirmed full-year guidance, projecting a return to profitability in 2026.
- 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
“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.”
Oscar Health CEO, on the earnings call
Forward Guidance & Outlook
Oscar Health reaffirmed its updated full year 2025 guidance across all metrics as provided in its preliminary financial results press release dated July 22, 2025. CEO Mark Bertolini stated the company expects the individual market to stabilize next year and expects to return to profitability in 2026. The company is building the individual market into a healthcare marketplace for more consumers and businesses and continues to position for long-term growth.
OSCR YoY Financials
OSCR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.