TLDR
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Oscar Health stock drops 10.66% despite record second-quarter profitability.
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Revenue rises to $4.88 billion as membership and insurance rates increase sharply.
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Net income reaches $361.8 million after a $228.4 million loss one year earlier.
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Oscar raises 2026 operating income guidance to as much as $700 million for the year.
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Membership climbs to 2.96 million as Oscar expands its individual health market.
Oscar Health (OSCR) stock fell 10.66% to $26.90 in late-morning trading despite stronger second-quarter earnings and improved full-year guidance. The insurer reported revenue growth, lower medical costs, and a swing to profitability. However, the selloff showed that the stronger report failed to support the shares.
Oscar Health Posts Record Second-Quarter Profit
Oscar Health generated $4.88 billion in second-quarter revenue, up from $2.86 billion one year earlier. Higher membership and rates drove growth, although risk adjustment transfers reduced part of the gain. The company expanded its scale in the individual health insurance market.
Operating income reached $388.6 million, reversing a $230.5 million operating loss from the prior-year quarter. Net income rose to $361.8 million, compared with a $228.4 million loss one year earlier. Diluted earnings reached $1.10 per share, against a loss of $0.89 per share previously.
Adjusted EBITDA improved to $415.3 million from a $199.4 million loss one year earlier. Meanwhile, the medical loss ratio dropped to 79.2% from 91.1% in the prior-year period. Disciplined pricing and $164 million in favorable reserve development supported the improvement.
Oscar Health Raises 2026 Operating Guidance
Oscar Health kept its 2026 revenue forecast between $18.7 billion and $19.0 billion. However, the company raised projected operating income to between $500 million and $700 million. Its previous forecast ranged from $250 million to $450 million.
The insurer lowered its expected medical loss ratio to between 81.5% and 82.5%. Previously, Oscar Health expected 82.4% to 83.4% for the full year. The updated range signals stronger underwriting performance and tighter control over medical expenses.
Oscar Health also reduced its projected SG&A expense ratio to between 15.6% and 16.1%. The company previously expected the ratio to fall between 15.8% and 16.3%. Better cost leverage and disciplined expense management supported the revised outlook.
Membership Growth Strengthens Oscar Health’s Market Position
Oscar Health ended June with 2.96 million members across its individual and related insurance offerings. That figure increased from 2.03 million members during the same period in 2025. The gain highlights continued demand in the individual health insurance market.
The company exited small group plans and its former Cigna partnership. Oscar Health now focuses mainly on individual coverage, including employer-funded reimbursement arrangements. This strategy gives the company greater exposure to workers moving between jobs and employment models.
Oscar Health has also used pricing controls and technology investments to support growth and profitability. The second-quarter results showed stronger underwriting, lower expenses, and a wider membership base. Still, Oscar Health stock fell sharply as the market reacted negatively to the report.
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