Oscar Health, Inc. (NYSE:OSCR) saw its shares drop 3.1% following the release of second-quarter financial results that fell short of analyst expectations, as the health insurer continues to face challenges in the individual insurance market.
The company reported a loss of $0.89 per share for the quarter, missing the forecasted loss of $0.84 per share. Revenue reached $2.86 billion, below the consensus estimate of $2.92 billion, but still represented a 29% increase compared to $2.22 billion in the same quarter last year.
Oscar’s medical loss ratio — the percentage of premiums spent on medical care — rose sharply to 91.1% from 79.0% in Q2 2024. The company attributed the rise to increased average market morbidity, leading to a higher risk adjustment transfer accrual.
“We believe the individual market has long-term upside and is the future of healthcare,” said CEO Mark Bertolini. “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.”
Despite the quarterly miss, Oscar Health reaffirmed its full-year 2025 guidance, forecasting revenue between $12 billion and $12.2 billion, slightly above the analyst consensus of $12.01 billion.
Membership grew significantly year-over-year, reaching 2,027,148 members as of June 30, 2025, up from 1,580,725 a year earlier, driven mainly by growth in the individual and small group segments.
Adjusted EBITDA showed a loss of $199.4 million for the quarter, a notable drop from the positive $104.1 million adjusted EBITDA reported in Q2 2024.
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