Key Highlights
- Oscar Health shares jumped nearly 11% during pre-market hours following a record quarterly profit of $679 million.
- The company posted adjusted EPS of $2.07, crushing the $1.06 analyst consensus by almost 100%.
- Quarterly revenue reached $4.65 billion, marking a 53% year-over-year increase despite falling short of the $4.91 billion estimate.
- Total membership across Individual and Small Group plans expanded 57% to 3.17 million.
- The company’s medical loss ratio improved significantly to 70.5% compared to 75.4% in the prior-year period.
Oscar Health Inc. delivered its strongest quarterly financial performance on record Wednesday, propelling OSCR shares up nearly 11% before the opening bell.
The health insurance provider recorded net income of $679 million, translating to $2.07 per diluted share — a substantial increase from the $275 million, or $0.92 per share, reported in the first quarter of 2025.
This performance significantly exceeded Wall Street’s adjusted EPS forecast of $1.06 by more than a dollar per share.
Quarterly revenue totaled $4.65 billion, representing a 53% surge from the $3.05 billion generated in the same quarter last year. However, the figure came in below analyst expectations of $4.91 billion.
Management reaffirmed its full-year 2026 outlook across all key performance indicators, demonstrating continued confidence in the company’s strategic direction.
Explosive Member Growth Drives Performance
Oscar’s membership base in Individual and Small Group insurance plans climbed to 3.17 million members by the end of March, compared to 2.02 million during the same period a year ago — representing a robust 57% expansion.
This membership surge was partially driven by the company’s geographic expansion into Alabama and Mississippi, bringing Oscar’s total state footprint to 20 for the 2026 benefit year.
The insurer now maintains operations across 573 counties spanning 93 metropolitan areas nationwide.
Industry-Leading Medical Cost Management
Oscar’s medical loss ratio — which measures the portion of premium income allocated to medical claims and expenses — improved dramatically to 70.5% from 75.4% in the first quarter of 2025.
This metric substantially outperforms the mid-to-high 80% range reported by numerous competing health insurance companies during the identical timeframe.
Oscar attributed this impressive margin performance to strategic pricing discipline and favorable prior period reserve adjustments totaling $68 million.
The company’s selling, general, and administrative expense ratio also showed improvement, declining to 15.2% from 15.8% year-over-year.
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 versus $297 million in the comparable prior-year quarter.
CEO Mark Bertolini stated the organization is “on track to significantly expand margins and achieve meaningful profitability in 2026.”
Oscar had struggled with profitability throughout most of its history following its 2012 launch. The company only achieved its first full-year profit in 2024 under Bertolini’s leadership, who assumed the CEO role in 2023 after previously serving as Aetna’s chief executive.
