Key Highlights
- Oscar Health shares climbed nearly 11% during pre-market hours following the announcement of a record quarterly profit reaching $679 million.
- Earnings per share on an adjusted basis reached $2.07, surpassing analyst projections of $1.06 by 95%.
- Total revenue reached $4.65 billion, falling short of the $4.91 billion forecast while still climbing 53% compared to the prior year.
- The company’s Individual and Small Group membership base expanded by 57% to 3.17 million members.
- Medical loss ratio showed significant improvement, dropping to 70.5% from the previous year’s 75.4%.
Oscar Health Inc. unveiled its strongest quarterly financial performance on Wednesday, propelling OSCR shares up nearly 11% before regular market hours.
The company posted net income of $679 million, translating to $2.07 per diluted share — a substantial increase from the $275 million, or $0.92 per share, recorded in Q1 2025.
This figure significantly exceeded Wall Street’s consensus forecast of $1.06 adjusted EPS by more than a full dollar.
Total revenue registered at $4.65 billion, representing a 53% increase from the $3.05 billion generated during the same quarter last year. However, this figure came in below the $4.91 billion projection from analysts.
Management reaffirmed its complete 2026 annual guidance across every key metric, demonstrating strong conviction in the company’s trajectory.
Member Base Expansion Drives Momentum
Oscar’s membership across Individual and Small Group plans reached 3.17 million at the end of March, compared to 2.02 million during the same period one year prior — representing 57% growth.
This expansion was supported by the company’s entry into Alabama and Mississippi, bringing Oscar’s total state presence to 20 across the U.S. for the 2026 benefit year.
The health insurer currently maintains operations across 573 counties spanning 93 metropolitan markets nationwide.
Medical Expense Efficiency Outpaces Industry Standards
The company’s medical loss ratio — representing the portion of premium dollars allocated to medical claims — improved to 70.5% from 75.4% during Q1 2025.
This performance stands significantly below the mid-to-high 80s range reported by numerous competing health insurance providers during the identical timeframe.
Oscar attributed this efficiency to strategic pricing discipline and favorable prior period reserve adjustments totaling $68 million.
The selling, general, and administrative expense ratio also demonstrated improvement, declining to 15.2% from 15.8%.
Adjusted EBITDA surged to $727 million, more than doubling the $329 million figure from Q1 2025.
Operating earnings similarly more than doubled, climbing to $704 million from $297 million.
CEO Mark Bertolini stated the company is “on track to significantly expand margins and achieve meaningful profitability in 2026.”
Oscar had operated at a loss throughout most of its history following its 2012 founding. The company achieved its first full-year profitability in 2024 under Bertolini’s leadership, who assumed the CEO role in 2023 following his tenure at Aetna.
