Oscar Health Inc - Class A
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did OSCR Beat Earnings? Q3 2025 Results
Oscar Health delivered a mixed but ultimately encouraging third quarter, posting a narrower-than-feared loss that sent shares climbing even as revenue fell short of Wall Street's expectations. The company reported a net loss of $0.53 per diluted share, beating the consensus estimate of $0.58 by 8.65%, while revenue of $2.99 billion trailed the $3.08 billion forecast by 3.12%, though it still represented a robust 23.2% year-over-year increase driven by membership surging to approximately 2.1 million from 1.65 million a year ago. The central headwind was a sharp rise in the medical loss ratio to 88.5% from 84.6%, largely attributable to a $130 million increase in net risk adjustment transfer accruals reflecting higher average market morbidity, which widened the operating loss to $129.25 million. Importantly, Oscar reaffirmed its full-year 2025 guidance, including total revenue of $12.00 billion to $12.20 billion and a loss from operations of $200 million to $300 million, with CEO Mark Bertolini expressing confidence in expanding margins and returning to profitability in 2026 through disciplined pricing and geographic expansion.
- Higher membership driving revenue growth to approximately 2.1 million members from 1.65 million year-over-year
- $130 million increase in net risk adjustment transfer accrual due to higher average market morbidity pressuring MLR
- $84 million of favorable prior period development partially offsetting risk adjustment impact
- $22 million of favorable intra-year development
- Greater fixed cost leverage and disciplined cost management improving SG&A expense ratio to 17.5% from 19.0%
- Lower exchange fee rates contributing to SG&A improvement
“The individual market is the only source of affordable health coverage for 22 million people who power our economy. Our market serves the small business, service, and farming sectors, and can meet the healthcare needs of 100 million more working people. Oscar is shaping the future of individual healthcare with affordable, innovative plans and a superior member experience. Our disciplined pricing and geographic expansion position us to profitably grow market share, and we are confident in our ability to expand margins and return to profitability in 2026.”
Oscar Health CEO, on the earnings call
Forward Guidance & Outlook
Oscar reaffirmed its full year 2025 guidance across all metrics: Total Revenue of $12.0 billion to $12.2 billion, Medical Loss Ratio of 86.0% to 87.0%, SG&A Expense Ratio of 17.1% to 17.6%, and Loss from Operations of $(300) million to $(200) million. The CEO expressed confidence in expanding margins and returning to profitability in 2026.
OSCR YoY Financials
OSCR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.