Oscar Health misses Q2 revenue estimates, reaffirms FY guidance

Oscar Health

06/08/2025 11:08

Overview

Oscar Health Q2 2025 revenue rises 29% yr/yr, but misses analysts' expectations

Reports Q2 loss from operations due to increased average market morbidity

Oscar Health reaffirms full-year guidance, expects profitability in 2026

Outlook

Oscar reaffirms full-year 2025 guidance across all metrics

Company expects individual market to stabilize in 2026

Oscar anticipates return to profitability in 2026

Result Drivers

HIGHER MEMBERSHIP - Revenue increase driven by higher membership, partially offset by increased net risk adjustment transfer accrual

INCREASED MORBIDITY - Higher medical loss ratio due to increased average market morbidity, impacting operational results

SG&A RATIO DECREASE - Lower SG&A expense ratio attributed to reduced exchange fee rates and greater fixed cost leverage

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$2.86 bln
$2.89 bln (7 Analysts)
Q2 EPS
$0.89
Q2 Operating Expenses
$3.09 bln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 5 "sell" or "strong sell"

The average consensus recommendation for the life & health insurance peer group is "buy."

Wall Street's median 12-month price target for Oscar Health Inc is $11.00, about 25.6% below its August 5 closing price of $13.82

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw7pjslQa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)