Key Highlights
- Oscar Health shares rallied nearly 11% during pre-market hours following a record quarterly profit of $679 million.
- The company’s adjusted EPS reached $2.07, substantially exceeding the analyst consensus of $1.06.
- Quarterly revenue totaled $4.65 billion, representing a 53% annual increase despite falling short of the $4.91 billion estimate.
- Total membership across Individual and Small Group offerings expanded 57% to 3.17 million members.
- The company’s medical loss ratio declined significantly to 70.5% from the prior year’s 75.4%.
Oscar Health Inc. delivered its strongest quarterly financial performance on record Wednesday, propelling OSCR shares up approximately 11% before the market opened.
The health insurance provider posted net income of $679 million, translating to $2.07 per diluted share — a significant leap from the $275 million, or $0.92 per share, recorded during the first quarter of 2025.
The results crushed Wall Street’s adjusted EPS forecast of $1.06 by more than a full dollar.
Quarterly revenue reached $4.65 billion, marking a 53% surge compared to the $3.05 billion generated in the same period last year. However, the figure came in below analysts’ expectations of $4.91 billion.
The health insurer reaffirmed its complete 2026 full-year guidance across every metric, demonstrating management’s conviction in its strategic direction.
Rapid Member Base Expansion Drives Revenue
Oscar’s total membership in Individual and Small Group health plans climbed to 3.17 million members by the end of March, compared to 2.02 million members one year prior — representing a robust 57% year-over-year gain.
This membership expansion was partially driven by the company’s entry into Alabama and Mississippi, bringing Oscar’s operational footprint to 20 states for the 2026 coverage period.
The insurer now serves customers across 573 counties spanning 93 metropolitan areas nationwide.
Operational Efficiency Outpaces Industry Competitors
Oscar achieved a medical loss ratio of 70.5% in the quarter, down from 75.4% during the first quarter of 2025.
This metric sits considerably lower than the mid-to-high 80% range reported by numerous competing health insurance providers during the same timeframe.
Management attributed the improved efficiency to strategic pricing decisions and $68 million in favorable adjustments to prior period reserves.
The company’s SG&A expense ratio also improved, contracting to 15.2% from the previous year’s 15.8%.
Adjusted EBITDA soared to $727 million, representing more than a twofold increase from the $329 million achieved in the first quarter of 2025.
Operating earnings similarly more than doubled, climbing to $704 million versus $297 million in the prior-year period.
Chief Executive Officer Mark Bertolini stated the organization is “on track to significantly expand margins and achieve meaningful profitability in 2026.”
Oscar struggled with profitability throughout much of its history following its 2012 launch. The company only achieved its first annual profit in 2024 under Bertolini’s leadership, who assumed the CEO role in 2023 after previously serving as Aetna’s chief executive.
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