Oscar Health Inc. (NYSE:OSCR) reported fourth-quarter 2025 results on Tuesday that came in below market expectations, overshadowing an otherwise confident outlook for the year ahead. The disappointing earnings prompted a sharp reaction from investors, with the stock down 4.58% in pre-market trading.
The health insurer posted a fourth-quarter loss of $1.24 per share, wider than the $0.89 loss analysts had forecast. Revenue for the period totaled $2.81 billion, missing the consensus estimate of $3.11 billion. Profitability was further pressured by a deterioration in the medical loss ratio — which tracks medical costs as a share of premiums — to 95.4%, compared with 88.1% in the same quarter a year earlier.
“2025 was a reset year for the individual market, and we took decisive actions to return to profitability in 2026,” said Mark Bertolini, CEO of Oscar Health. “Our new suite of affordable products, agentic AI features, and exceptional member experience drove record-high membership – positioning us to achieve significantly improved financial performance in 2026.”
Despite the weaker-than-expected quarterly performance, Oscar Health laid out an ambitious forecast for fiscal 2026. The company expects revenue of between $18.7 billion and $19 billion, well above the analyst consensus of $12.76 billion. Management also said it anticipates a return to profitability, with operating earnings projected in a range of $250 million to $450 million.
For full-year 2025, Oscar Health reported a net loss of $443.2 million, or $1.69 per share, reversing a net profit of $25.4 million, or $0.10 per share, in 2024. Annual revenue rose to $11.7 billion from $9.2 billion a year earlier, supported by strong growth in membership.
The company also highlighted recent steps to bolster its financial flexibility, including the arrangement of a $475 million secured revolving credit facility with a three-year term. “We took opportunistic steps to strengthen our balance sheet and optimize our capital structure,” said Scott Blackley, CFO of Oscar Health.