Oscar Health, Inc. (NYSE:OSCR) shares surged 8.2% in premarket trading Thursday after the digital health insurer reported a smaller-than-expected quarterly loss, even as revenue came in just below Wall Street forecasts.
For the third quarter, the company reported a net loss of $0.53 per share, outperforming analyst expectations for a $0.56 loss. Revenue rose 23% year over year to $2.99 billion, slightly under the consensus estimate of $3.08 billion.
Oscar reaffirmed its full-year 2025 guidance, maintaining projected revenue between $12 billion and $12.2 billion, consistent with market expectations of $12.04 billion. The company’s medical loss ratio increased to 88.5% from 84.6% a year earlier, reflecting higher overall market morbidity.
“The individual market is the only source of affordable health coverage for 22 million people who power our economy,” said Mark Bertolini, CEO of Oscar Health. “Oscar is shaping the future of individual healthcare with affordable, innovative plans and a superior member experience.”
Total membership climbed to 2.12 million as of September 30, 2025, compared with 1.65 million a year earlier. Meanwhile, the company’s SG&A expense ratio improved to 17.5% from 19.0%, driven by better fixed-cost leverage and disciplined expense control.
Oscar also disclosed a partial settlement of its 2031 Convertible Senior Notes, exchanging approximately $187.5 million of debt for about 23.3 million shares of Class A common stock. Management reiterated expectations for the company to return to profitability in 2026.