Oscar Health Reports Q2 GAAP EPS of -$0.89, Revenue of $2.86B Misses Expectations

Oscar Health reported Q2 GAAP EPS of -$0.89, missing estimates by $0.01. Revenue of $2.86B increased 28.8% YoY but missed estimates by $60M.

Oscar Health Inc. (NYSE: OSCR) reported its Q2 2025 earnings, with GAAP EPS of -$0.89, missing estimates by $0.01. Revenue of $2.86 billion increased 28.8% year-over-year but fell short of expectations by $60 million. The company also pre-announced an operating loss of approximately $230 million and a net loss near $228 million, which was significantly below analyst expectations [3].

Oscar Health's Q2 performance highlights several challenges, particularly in the Affordable Care Act (ACA) marketplace. The company expects its medical loss ratio (MLR) to rise to 86.8%, up from prior guidance, due to elevated ACA risk scores and utilization trends. This increase in MLR could further erode profitability [3].

Despite the revenue growth of 28.8% year-over-year, investors are concerned about Oscar's ability to maintain its margin path in the face of structural ACA headwinds. The company's MLR in Q1 stood at 75.4%, already above 2024 levels, driven by accruals and risk-adjustment true-ups. Rising morbidity in the ACA single-risk pool and uncertainty around CSR funding create ongoing risks [3].

Investors will closely examine Oscar's Q2 commentary to gauge the company's strategic reset and assess its digital-first model, tight SG&A control, and growing ICHRA/public exchange book. The company's execution risks are high, and restoring investor confidence will be crucial to stem the stock's slide [3].

References:
[1] https://finance.yahoo.com/news/oscar-health-oscr-3-reasons-040126702.html
[2] https://seekingalpha.com/news/4479553-oscar-health-gaap-eps-of-0_89-misses-by-0_01-revenue-of-2_86b-misses-by-60m
[3] https://finance.yahoo.com/news/oscar-health-q2-preview-aca-185625684.html