Key Highlights
- OSCR shares jumped nearly 11% in early trading following the announcement of a record quarterly profit totaling $679 million.
- Earnings per share on an adjusted basis reached $2.07, significantly exceeding the $1.06 analyst consensus by 95%.
- Quarterly revenue totaled $4.65 billion, reflecting a 53% year-over-year increase despite falling short of the $4.91 billion projection.
- Total membership across Individual and Small Group segments expanded 57%, climbing to 3.17 million members.
- The company’s medical loss ratio showed substantial improvement, declining to 70.5% from 75.4% in the prior year period.
Oscar Health Inc. delivered its strongest quarterly financial performance to date on Wednesday, propelling OSCR shares up approximately 11% during pre-market hours.
The health insurance provider recorded net income of $679 million, translating to $2.07 per diluted share—a substantial increase from the $275 million, or $0.92 per share, reported during the first quarter of 2025.
This performance dramatically exceeded Wall Street’s adjusted EPS forecast of $1.06 by roughly one dollar.
Total revenue reached $4.65 billion, representing a 53% surge compared to the $3.05 billion generated in the same quarter last year. However, this figure came in below the Street’s $4.91 billion expectation.
Management reaffirmed its complete full-year 2026 outlook across all financial and operational metrics, demonstrating strong conviction in the company’s trajectory.
Dramatic Member Growth Drives Performance
Oscar’s total membership in Individual and Small Group health plans reached 3.17 million as of the end of March, compared to 2.02 million during the same period one year prior—representing a 57% year-over-year expansion.
This growth was partially driven by the company’s geographic expansion into Alabama and Mississippi, two new markets that brought Oscar’s total state presence to 20 for the 2026 benefit year.
The insurer now maintains operations across 573 counties spanning 93 metropolitan markets nationwide.
Industry-Leading Efficiency on Medical Spending
Oscar’s medical loss ratio—the proportion of premium dollars allocated to medical claims and care delivery—improved significantly to 70.5% from 75.4% recorded in the first quarter of 2025.
This metric stands substantially better than the mid-to-high 80% range reported by numerous competing health insurance companies during the identical timeframe.
Management attributed this performance to strategic pricing discipline and positive prior period reserve development totaling $68 million.
The company’s selling, general, and administrative expense ratio also improved, contracting to 15.2% from 15.8%.
Adjusted EBITDA climbed to $727 million, more than doubling the $329 million figure from the first quarter of 2025.
Operating earnings similarly more than doubled, advancing to $704 million from $297 million.
CEO Mark Bertolini stated the organization is “on track to significantly expand margins and achieve meaningful profitability in 2026.”
Oscar had operated at a loss throughout most of its history since its 2012 founding. The company achieved its first full-year profitability in 2024 under Bertolini’s leadership, who assumed the CEO role in 2023 after previously serving as Aetna’s chief executive.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
