Oscar Health sees year revenue $12B-$12.2B

Oscar Health sees year revenue $12B-$12.2B

Oscar Health (OSCR) has announced its preliminary financial results for the second quarter of 2025 and revised its full-year 2025 guidance. The company expects a Q2 2025 operating loss of $230 million and a net loss of $228 million, with total revenue projected to be between $12.0 billion and $12.2 billion for the year [1].

The revision follows analysis of 2025 Marketplace data showing higher-than-expected ACA Marketplace risk scores. For the full year 2025, Oscar now projects a medical loss ratio of 86.0-87.0% and an SG&A expense ratio of 17.1-17.6%. The company anticipates a loss from operations between $300 million and $200 million [1].

In response to these higher risk scores, Oscar plans to resubmit 2026 rate filings for approximately 98% of its current membership to reflect the increased risk. The company's focus on operational efficiency and cost management, driven by AI-driven tools, positions it to navigate these challenges [1].

Oscar's strong financial performance in the first quarter of 2025, with revenue surging 42% year-over-year to $3.0 billion, demonstrates its ability to adapt and grow in a dynamic market. The company's total membership grew to 2.04 million, primarily in the Individual and Small Group segments, with a significant improvement in operating efficiency [1].

Despite these near-term challenges, Oscar's long-term growth prospects remain robust, driven by its technology-driven solutions and operational discipline. The company's 8–10% ACA market share is underpinned by a 66 Net Promoter Score and AI tools that reduce claims costs and improve member satisfaction [1].

Investors should closely monitor Oscar's progress as it navigates the ACA subsidy cliff and continues to expand its offerings. The company's strategic initiatives, including its focus on Medicare Advantage expansion and platform services, position it to outperform peers in the medium to long term [1].

References:
[1] https://www.ainvest.com/news/oscar-health-contrarian-play-analyst-downgrades-market-overreaction-2507/