TLDR
- Oscar Health stock surged nearly 11% in pre-market trading after reporting its highest-ever quarterly profit of $679 million.
- Adjusted EPS came in at $2.07, nearly double the analyst estimate of $1.06.
- Revenue of $4.65 billion missed estimates of $4.91 billion but was up 53% year-over-year.
- Membership in Individual and Small Group plans grew 57%, reaching 3.17 million members.
- The medical loss ratio improved sharply to 70.5% from 75.4% a year earlier.
Oscar Health Inc. reported its best-ever quarterly profit Wednesday, sending OSCR stock up nearly 11% in pre-market trading.
$OSCR Q1’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $4.65B (Est. $4.91B) 🔴
🔹 EPS: $2.07 (Est. $1.06) 🟢
🔹 Total Members: 3.17M
🔹 MLR: 70.5%
🔹 Adjusted EBITDA: $727.1MFY 2026 Guide:
🔹 Full-Year 2026 Outlook: Reaffirmed across all metricsOther Metrics:
🔹 Individual And Small…— Wall St Engine (@wallstengine) May 6, 2026
Net income hit $679 million, or $2.07 per diluted share — up from $275 million, or $0.92 per share, in Q1 2025.
That blew past the analyst consensus of $1.06 adjusted EPS by a dollar.
Revenue came in at $4.65 billion, a 53% jump from $3.05 billion a year ago. That said, it did fall short of the $4.91 billion Wall Street had penciled in.
The company stood by its full-year 2026 guidance across all metrics, signaling confidence in its path ahead.
Membership Surge Fuels Growth
Oscar’s Individual and Small Group plan membership grew to 3.17 million as of March 31, up from 2.02 million a year earlier — a 57% increase.
That growth came partly from expanding into two new states, Alabama and Mississippi, bringing Oscar’s coverage to 20 U.S. states for the 2026 benefit year.
The company now operates in 573 counties across 93 metro markets.
Medical Costs Come In Well Below Rivals
Oscar’s medical loss ratio — the percentage of premium revenue spent on medical claims — dropped to 70.5% from 75.4% in Q1 2025.
That’s well below the mid-to-high 80s that many other health insurers reported over the same period.
Oscar credited disciplined pricing and favorable prior period reserve development of $68 million for the improvement.
The SG&A expense ratio also tightened, falling to 15.2% from 15.8%.
Adjusted EBITDA reached $727 million, more than double the $329 million posted in Q1 2025.
Earnings from operations also more than doubled, rising to $704 million from $297 million.
CEO Mark Bertolini said the company is “on track to significantly expand margins and achieve meaningful profitability in 2026.”
Oscar had been unprofitable for most of its existence since launching in 2012. It only turned a full-year profit in 2024 under Bertolini, who joined as CEO in 2023 after leading Aetna.
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