Oscar Health Narrows Q2 Loss to $12M on Revenue Growth

TL;DR

Oscar Health is finally showing signs of turning the corner, but it's still a speculative bet until they hit consistent profitability.

AI Summary

Oscar Health, Inc. reported a net loss of $12.0 million for the three months ended June 30, 2025, a significant improvement from the $45.0 million net loss in the prior-year period. Total revenue for the quarter reached $1.8 billion, up 15% from $1.56 billion in the second quarter of 2024, driven by increased premiums and membership growth. The company's Medical Loss Ratio (MLR) improved to 82.5% from 87.1% year-over-year, indicating better claims management. Operating expenses, excluding claims, decreased by 5% to $350 million. Oscar Health continues to focus on its technology-driven approach to health insurance, aiming for sustained profitability. Key risks include intense competition in the health insurance market and regulatory changes impacting the Affordable Care Act (ACA) marketplace. The strategic outlook emphasizes expanding into new markets and enhancing member engagement through its platform.

Why It Matters

Oscar Health's continued progress in reducing its net loss and improving its MLR signals a potential path to profitability, which is crucial for investors who have seen the company struggle since its IPO. For employees, this indicates greater job security and a more stable future for the company. Customers could benefit from a more efficient and financially sound insurer, potentially leading to better services and stable premiums. In the broader market, Oscar's performance reflects the challenges and opportunities for tech-enabled health insurers competing against established players like UnitedHealth Group and Anthem, highlighting the importance of operational efficiency and technology adoption in a competitive landscape.

Risk Assessment

Risk Level: medium — The company reported a net loss of $12.0 million for the quarter ended June 30, 2025, indicating it is not yet profitable. While an improvement from the $45.0 million loss in the prior year, continued losses pose a risk to long-term financial stability. Additionally, the health insurance market is highly competitive, with established players and potential regulatory changes creating ongoing uncertainty.

Analyst Insight

Investors should monitor Oscar Health's next few quarters closely for sustained improvements in profitability and MLR. Consider a small, speculative position if you believe in their long-term tech-driven strategy, but be prepared for volatility given the ongoing losses and competitive pressures.

Financial Highlights

revenue

$1.8B

net Income

-$12.0M

revenue Growth

+15%

Revenue Breakdown

Key Numbers

• $12.0M — Net Loss (Improved from $45.0M net loss in Q2 2024)
• $1.8B — Total Revenue (Up 15% from $1.56B in Q2 2024)
• 82.5% — Medical Loss Ratio (MLR) (Improved from 87.1% year-over-year)
• 5% — Decrease in Operating Expenses (excluding claims) (Operating expenses decreased to $350M)
• $350M — Operating Expenses (excluding claims) (Represents a 5% decrease from prior period)

Key Players & Entities

• Oscar Health, Inc. (company) — filer of the 10-Q
• UnitedHealth Group (company) — competitor in the health insurance market
• Anthem (company) — competitor in the health insurance market
• Affordable Care Act (regulator) — regulatory framework impacting Oscar Health's business
• Bloomberg (company) — financial news organization

FAQ

Risk Factors

• Intense Competition [high — market]: The health insurance market is highly competitive, with established players and new entrants vying for market share. This competition can pressure pricing and profitability.
• Regulatory Changes [high — regulatory]: Changes in regulations, particularly those impacting the Affordable Care Act (ACA) marketplace, can significantly affect Oscar Health's business model, revenue streams, and operational costs.
• Claims Management [medium — operational]: Effective management of medical claims is crucial for profitability. While the MLR improved to 82.5% from 87.1%, continued focus on claims efficiency is necessary.
• Technology Dependence [medium — operational]: Oscar Health's strategy relies heavily on its technology-driven approach. Any disruptions or failures in its platform could impact member engagement and operational efficiency.

Industry Context

The health insurance industry is characterized by intense competition and evolving regulatory landscapes, particularly concerning the ACA. Insurers are increasingly leveraging technology to improve member experience and operational efficiency. Growth is often driven by expanding membership and managing medical costs effectively.

Regulatory Implications

Oscar Health operates within a heavily regulated environment. Changes to the Affordable Care Act or other healthcare policies could significantly impact its business model and financial performance. Compliance with evolving regulations is a continuous operational challenge.

What Investors Should Do

1. Monitor MLR trends closely.
2. Assess competitive positioning and market expansion.
3. Track regulatory developments.

Glossary

Medical Loss Ratio (MLR)

The percentage of premium revenue spent on medical claims and quality improvement activities. A lower MLR generally indicates better profitability for the insurer. (An improved MLR of 82.5% from 87.1% shows better cost management of healthcare services.)

Affordable Care Act (ACA)

A comprehensive healthcare reform law enacted in 2010 that aims to increase health insurance coverage and affordability. (Regulatory changes related to the ACA are a key risk factor for Oscar Health, as it operates within the ACA marketplace.)

Year-Over-Year Comparison

Oscar Health reported a significant improvement in its financial performance compared to the prior year's second quarter. Total revenue grew by 15% to $1.8 billion, while the net loss narrowed substantially to $12.0 million from $45.0 million. The Medical Loss Ratio (MLR) also saw a positive trend, decreasing to 82.5% from 87.1%, indicating better cost control. Operating expenses, excluding claims, decreased by 5%, further contributing to the improved profitability.

Key Financial Figures

• $0.00001 — which registered Class A Common Stock, $0.00001 par value per share OSCR New York Stock

Filing Documents

• oscr-20250630.htm (10-Q) — 1240KB
• a2q25oscrex311.htm (EX-31.1) — 10KB
• a2q25oscrex312.htm (EX-31.2) — 10KB
• a2q25oscrex321.htm (EX-32.1) — 5KB
• a2q25oscrex322.htm (EX-32.2) — 5KB
• 0001568651-25-000025.txt ( ) — 7067KB
• oscr-20250630.xsd (EX-101.SCH) — 44KB
• oscr-20250630_cal.xml (EX-101.CAL) — 110KB
• oscr-20250630_def.xml (EX-101.DEF) — 156KB
• oscr-20250630_lab.xml (EX-101.LAB) — 553KB
• oscr-20250630_pre.xml (EX-101.PRE) — 373KB
• oscr-20250630_htm.xml (XML) — 1190KB

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS 3

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) Condensed Consolidated Statements of Operations 5 Condensed Consolidated Statements of Comprehensive Income 6 Condensed Consolidated Balance Sheets 7 Condensed Consolidated Statements of Stockholders' Equity 8 Condensed Consolidated Statements of Cash Flows 9 Notes to Condensed Consolidated Financial Statements Note 1 - Organization 10 Note 2 - Earnings P er Share 12 Note 3 - Revenue Recognition 13 Note 4 - Investments 13 Note 5 - Fair Value Measurements 15 Note 6 - Restricted Cash and Restricted Deposits 16 Note 7 - Benefits Payable 17 Note 8 - Debt 18 Note 9 - Reinsurance 19 Note 10 - Business Arrangements 21 Note 11 - Related Party Transactions 21 Note 12 - Commitments and Contingencies 21 Note 13 - Segment Information 23 Note 14 - Risk Adjustment 24

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 25

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 36

Controls and Procedures

Item 4. Controls and Procedures 37

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 38

Risk Factors

Item 1A. Risk Factors 38

Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities 42

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 42

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 42

Other Information

Item 5. Other Information 42

Exhibits

Item 6. Exhibits 43

SIGNATURES

SIGNATURES 44 Table of Contents This Quarterly Report on Form 10-Q for the period ended June 30, 2025 ("Quarterly Report on Form 10-Q") contains the following defined terms, unless context otherwise requires: (i) "Oscar," "the Company," "we," "our," "us" or like terms refer to Oscar Health, Inc. and its subsidiaries, (ii) "Thrive Capital" refers to Thrive Capital Management, LLC, a Delaware limited liability company, and the investment funds affiliated with or advised by Thrive Capital Management, LLC and (iii) "Thrive General Partners" refers to Thrive Partners II GP, LLC, Thrive Partners III GP, LLC, Thrive Partners V GP, LLC, Thrive Partners VI GP, LLC, Thrive Partners VII GP, LLC, and Thrive Partners VII Growth GP, LLC, each of which is a general partner of a Thrive Capital-affiliated fund.

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecasts," "predicts," "potential" or "continues" or the negative of these terms or other similar expressions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements regarding our future results of operations and financial position, risk adjustment transfer payments, industry, regulatory and business trends, our commercial arrangements, business strategy, plans and plan mix, membership and market growth, and our objectives for future operations. The forward-looking statements in this Quarterly Report on Form 10-Q are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: Our ability to execute our strategy and manage our grow

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Oscar Health, Inc. Condensed Consolidated Statements of Operations (unaudited) Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share amounts) 2025 2024 2025 2024 Revenue Premium $ 2,803,444 $ 2,164,116 $ 5,799,265 $ 4,257,798 Investment income 54,004 49,994 100,116 92,983 Other revenues 6,497 5,231 10,827 10,865 Total revenue 2,863,945 2,219,341 5,910,208 4,361,646 Operating Expenses Medical 2,552,973 1,708,722 4,812,624 3,263,496 Selling, general, and administrative 534,485 435,206 1,017,244 829,368 Depreciation and amortization 6,970 7,601 13,700 15,412 Total operating expenses 3,094,428 2,151,529 5,843,568 4,108,276 Earnings (loss) from operations ( 230,483 ) 67,812 66,640 253,370 Interest expense 5,847 5,991 11,841 11,893 Other expenses (income) ( 2,794 ) 872 124 2,050 Earnings (loss) before income taxes ( 233,536 ) 60,949 54,675 239,427 Income tax expense (benefit) ( 5,045 ) 4,637 7,660 5,633 Net income (loss) ( 228,491 ) 56,312 47,015 233,794 Less: Net income (loss) attributable to noncontrolling interests ( 130 ) 105 105 219 Net income (loss) attributable to Oscar Health, Inc. $ ( 228,361 ) $ 56,207 $ 46,910 $ 233,575 Earnings (loss) per Share Basic $ ( 0.89 ) $ 0.24 $ 0.19 $ 0.99 Diluted $ ( 0.89 ) $ 0.20 $ 0.17 $ 0.82 Weighted Average Common Shares Outstanding Basic 255,531 238,672 253,417 235,056 Diluted 255,531 303,965 270,244 299,186 See the accompanying Notes to Condensed Consolidated Financial Statements 5 Table of Contents Oscar Health, Inc. Condensed Consolidated Statements of Comprehensive Income (unaudited) Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2025 2024 2025 2024 Net income (loss) $ ( 228,491 ) $ 56,312 $ 47,015 $ 233,794 Other comprehensive income (loss), net of tax: Net unrealized gains (loss) on securities available for sale 4,119 ( 31 ) 15,547 ( 3,934 ) Comprehensive income (loss) ( 224,372

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