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Investing.com -- Oscar Health, Inc. reported second-quarter financial results that fell short of analyst expectations, sending shares down 3.1% as the health insurer continues to navigate challenges in the individual insurance market.
The company reported a loss of $0.89 per share for the second quarter, missing analyst estimates of a $0.84 loss. Revenue came in at $2.86 billion, below the consensus estimate of $2.92 billion, though it represented a 29% increase from the $2.22 billion reported in the same quarter last year.
Oscar’s medical loss ratio, which measures the percentage of premiums spent on medical care, jumped to 91.1% in the quarter, up significantly from 79.0% in the second quarter of 2024. The company attributed this increase to higher average market morbidity that resulted in an increased risk adjustment transfer accrual.
"We believe the individual market has long-term upside and is the future of healthcare," said Mark Bertolini, CEO of Oscar Health. "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, projecting revenue between $12 billion and $12.2 billion, slightly above the analyst consensus of $12.01 billion.
The company’s membership grew substantially YoY, with total members increasing to 2,027,148 as of June 30, 2025, compared to 1,580,725 in the same period last year. This growth was driven primarily by the individual and small group segment.
Oscar’s adjusted EBITDA showed a loss of $199.4 million for the quarter, a significant decline from the positive adjusted EBITDA of $104.1 million reported in the second quarter of 2024.