Oscar Health posts lower-than-expected Q1 revenue growth

Oscar Health

06/05/2026 11:10

Overview

US health insurer's Q1 revenue rose 52% yr/yr but missed analyst expectations

Adjusted EBITDA beat analyst expectations, reflecting strong operating performance

Company reaffirmed full-year 2026 guidance and expects margin expansion

Outlook

Oscar Health reaffirms full-year 2026 guidance across all metrics

Company says individual market remains resilient and workforce is shifting toward consumer-driven health

Result Drivers

HIGHER MEMBERSHIP AND RATE INCREASES - Revenue growth was driven by increased membership and rate hikes, partially offset by higher net risk adjustment transfer accrual

IMPROVED MEDICAL LOSS RATIO - Lower MLR resulted from disciplined pricing, claims and risk adjustment seasonality, and favorable prior period reserve development

FIXED COST LEVERAGE - SG&A expense ratio declined due to greater fixed cost leverage and disciplined cost management

Company press release: ID:nBw2kdDhPa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$4.65 bln
$4.92 bln (10 Analysts)
Q1 EPS
$2.07
Q1 Net Income
$679 mln
Q1 Adjusted EBITDA
Beat
$727.07 mln
$434.53 mln (10 Analysts)
Q1 Operating Expenses
$3.94 bln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 7 "hold" and 2 "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 $17.00, about 5.2% below its May 5 closing price of $17.94

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)