Oscar Health Q2 Earnings Call Highlights Growth Amid Challenges

Oscar Health reported Q2 revenue of $2.9 billion, up 29% YoY, and ended the quarter with 2 million members, a 28% YoY increase. However, the company faces challenges with increased medical loss ratios, operating losses, and market morbidity. Oscar Health is implementing expense management initiatives and strategic acquisitions to diversify its business and enhance market offerings. Despite challenges, the company remains hopeful about future profitability and market stabilization.

Oscar Health, Inc. (NYSE: OSCR) announced its financial results for the second quarter ended June 30, 2025, reporting a 29% year-over-year (YoY) increase in revenue to $2.9 billion. The company also ended the quarter with 2 million members, a 28% YoY increase. However, the quarter was marked by challenges, including increased medical loss ratios, operating losses, and market morbidity [1].

Key financial highlights for the second quarter of 2025 include:
- Total Revenue: $2.863 billion, up from $2.219 billion in the same quarter last year.
- Medical Loss Ratio: 91.1%, compared to 79.0% in the same period in 2024.
- SG&A Expense Ratio: 18.7%, down from 19.6% in the same period last year.
- Loss from Operations: $230.4 million, compared to a gain of $67.8 million in the same period in 2024.
- Net Loss Attributable to Oscar Health, Inc.: $228.3 million, compared to net income of $56.2 million in the same period in 2024.

The increase in revenue was primarily driven by higher membership, partially offset by an increase in the net risk adjustment transfer accrual. The medical loss ratio increased due to higher average market morbidity, leading to a higher net risk adjustment transfer accrual. The SG&A expense ratio decreased due to lower exchange fee rates and greater fixed cost leverage, partially offset by the impact of higher risk adjustment as a percentage of premium [1].

Oscar Health's CEO, Mark Bertolini, commented, "We believe the individual market has long-term upside and is the future of healthcare. Oscar is well-positioned to manage through the market reset in 2025. We believe the market will stabilize next year, and expect to return to profitability in 2026. We are building the individual market into a healthcare marketplace for more consumers and businesses, and continue to position the company for long-term growth" [1].

The company is implementing expense management initiatives and strategic acquisitions to diversify its business and enhance market offerings. Despite the challenges, Oscar Health remains hopeful about future profitability and market stabilization.

References:
[1] https://ir.hioscar.com/news-events-presentations/news-press-releases/news-details/2025/Oscar-Health-Announces-Financial-Results-for-Second-Quarter-2025-and-Reaffirms-Updated-2025-Guidance/default.aspx