Oscar Health Tumbles 4.04% as Trading Volume Drops to 438th Largest in Market Amid Missed Earnings Estimates

Oscar Health (OSCR) closed August 12, 2025, with a 4.04% decline to $14.96, marking a 23.43% drop in trading volume to $0.24 billion—the 438th highest in the market. The stock’s performance followed mixed Q2 results, with revenue rising 29% year-on-year to $2.86 billion but missing analyst revenue estimates by 3.5% and non-GAAP EPS by 6.5%.

Management attributed the shortfall to elevated market morbidity, driven by higher-risk members and Medicaid redeterminations, which increased medical costs and compressed margins. CEO Mark Bertolini emphasized cost controls, including a 90-basis-point reduction in SG&A expenses and a planned $60 million in administrative savings by 2026. The company is also restructuring its workforce and repricing plans to address rising medical costs and stabilize margins.

Strategic initiatives include expanding its Individual Coverage HRA (ICHRA) offerings and acquiring digital assets to diversify revenue streams. CFO Scott Blackley highlighted conservative pricing and cost discipline as critical to achieving profitability. However, risks remain as market-wide morbidity trends and regulatory actions on rate filings could impact future performance.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day resulted in a total profit of $2,550 from 2022 to the present. The maximum drawdown during this period was -15.2%, recorded on October 27, 2022, indicating significant volatility despite overall profitability.