Oscar Health Inc - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −4.31%.
Did OSCR Beat Earnings? Q4 2025 Results
Oscar Health delivered a sharply disappointing fourth quarter, missing on both the top and bottom lines as a surge in medical costs overwhelmed revenue growth. The company posted a Q4 loss of $1.24 per share, falling well short of the $0.92 consensus estimate by 34.78%, while revenue of $2.81 billion trailed expectations by 10.17% despite climbing 17.2% year over year. The culprit was unmistakable: the medical loss ratio ballooned to 95.4% from 88.1% a year earlier, driven by higher average market morbidity, elevated utilization, and a swollen net risk adjustment transfer accrual. For the full year, Oscar swung to a net loss of $443.15 million from net income of $25.43 million in 2024, prompting CEO Mark Bertolini to frame 2025 as a reset year. Yet the company's forward guidance, projecting 2026 revenue of $18.70 billion to $19.00 billion and a return to operating profitability, alongside a new $475 million revolving credit facility, was enough to lift shares roughly 9.6% following the announcement.
- Record membership growth to approximately 3.4 million members
- Higher average market morbidity increased net risk adjustment transfer accrual, driving MLR higher
- Higher utilization not fully offset by risk adjustment
- Greater fixed cost leverage and disciplined cost management improved SG&A expense ratio
- Direct policy premiums grew to $3.55 billion in Q4 2025 from $2.75 billion in Q4 2024
“2025 was a reset year for the individual market, and we took decisive actions to return to profitability in 2026. Our new suite of affordable products, agentic AI features, and exceptional member experience drove record-high membership – positioning us to achieve significantly improved financial performance in 2026. Oscar's growth demonstrates consumers vote where they find value. We are creating a loyal customer base and building a healthcare market that serves the needs of all employers and consumers at every stage of life.”
Oscar Health CEO, on the earnings call
Forward Guidance & Outlook
For full-year 2026, Oscar Health projects total revenue of $18.7 billion to $19.0 billion, a medical loss ratio of 82.4% to 83.4%, an SG&A expense ratio of 15.8% to 16.3%, and earnings from operations of $250 million to $450 million. Management expects a return to profitability driven by record membership of approximately 3.4 million, a new suite of affordable products, and continued cost discipline. The company also secured a $475 million revolving credit facility to provide additional balance sheet flexibility and fuel long-term growth.
OSCR YoY Financials
OSCR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.