Oscar Health, Inc. (OSCR): Results of Operations and Financial Condition
Oscar Health, Inc. (OSCR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Oscar Health, Inc. ir.hioscar.com News Release Oscar Health Announces Record Financial Results for First Half 2026 and Raises Full Year 2026 Outlook New York, NY, August 6, 2026 – Oscar Health, Inc. (“Oscar” or the “Company”) (NYSE: OSCR) announced today its financial results for
How this was made
The 30-second read
Why it matters
Oscar’s Q2 profitability and operating metrics improved sharply year over year, and management raised FY2026 guidance for revenue, MLR, SG&A ratio, and operating earnings, creating a direct repricing catalyst.
Market read
This is a primary-source earnings and guidance update with quantified KPI changes (revenue, MLR, SG&A ratio, operating income) and updated FY2026 ranges.
What to watch
Traders should scrutinize the updated MLR and SG&A guidance ranges and whether membership growth assumptions hold, especially given the prior Cigna+Oscar partnership ended in 2024.
Oscar Health Announces Record Financial Results for First Half 2026 and Raises Full Year 2026 Outlook
Second-quarter revenue, underwriting metrics, operating earnings, net income, diluted earnings per share, and Adjusted EBITDA all improved versus the second quarter of 2025, while the Company raised its full-year outlook for medical loss ratio, SG&A expense ratio, and earnings from operations.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended June 30, 2026GAAP | $4,880,220 (in thousands) | – | – |
| Medical loss ratio, three months ended June 30, 2026other | 79.2% | – | – |
| SG&A expense ratio, three months ended June 30, 2026other | 14.2% | – | – |
| Earnings from operations, three months ended June 30, 2026GAAP | $388,635 (in thousands) | – | – |
| Net income attributable to Oscar Health, Inc., three months ended June 30, 2026GAAP | $361,808 (in thousands) | – | – |
| Diluted earnings per share, three months ended June 30, 2026GAAP | $1.10 of diluted earnings per share | – | – |
| Adjusted EBITDA, three months ended June 30, 2026non-GAAP | $415,349 (in thousands) | – | – |
| Total revenue, six months ended June 30, 2026GAAP | $9,527,414 (in thousands) | – | – |
| Medical loss ratio, six months ended June 30, 2026other | 75.0% | – | – |
| SG&A expense ratio, six months ended June 30, 2026other | 14.7% | – | – |
| Earnings from operations, six months ended June 30, 2026GAAP | $1,092,720 (in thousands) | – | – |
| Net income attributable to Oscar Health, Inc., six months ended June 30, 2026GAAP | $1,040,804 (in thousands) | – | – |
| Adjusted EBITDA, six months ended June 30, 2026non-GAAP | $1,142,421 (in thousands) | – | – |
| Individual and Small Group effectuated membership as of June 30, 2026other | 2,963,002 | – | – |
| Cigna+Oscar effectuated membership as of June 30, 2026other | — | – | – |
| Total effectuated members as of June 30, 2026other | 2,963,002 | – | – |
Updated Full Year 2026 Outlook outlook
- Revenue$18.7 billion to $19.0 billion
- NoteMedical Loss Ratio: 81.5% to 82.5%
- NoteSG&A Expense Ratio: 15.6% to 16.1%
- NoteEarnings from Operations: $500 million to $700 million
What drove it
- Total revenue growth was driven by higher membership and rate increases, partially offset by an increase in the net risk adjustment transfer accrual.
- The medical loss ratio decrease was primarily driven by disciplined pricing strategy and $164 million of favorable prior period reserve development.
- The SG&A expense ratio decrease was primarily due to disciplined expense management, greater fixed cost leverage, and the impact of lower risk adjustment as a percentage of premium.
- The increase in earnings from operations reflected strong operating performance driven primarily by improved underwriting performance and favorable prior period development.
Concerns
- Second-quarter total revenue growth was partially offset by an increase in the net risk adjustment transfer accrual.
- The second quarter of 2025 medical loss ratio included the entire first half impact of 2025 risk adjustment true-up driven by higher average market morbidity.
- The Company identified risks relating to changes in federal or state laws or regulations, including the expiration of enhanced Advanced Premium Tax Credits, implementation of new program integrity rules pursuant to the Notice of Benefit and Payment Parameters for policy year 2027, and potential funding of a cost-sharing reduction program.
- The Company identified risks relating to accurately estimating incurred medical expenses or overall market morbidity, risk adjustment programs, capital reserve and surplus requirements, and quota share reinsurance.
What to watch
- Medical loss ratio performance against the updated full-year range of 81.5% to 82.5%.
- SG&A expense ratio performance against the updated full-year range of 15.6% to 16.1%.
- Earnings from operations performance against the updated full-year range of $500 million to $700 million.
- Membership growth, rate increases, net risk adjustment transfer accruals, and prior period reserve development.
Analysis
Oscar reported substantial second-quarter improvement across revenue, underwriting and profitability. Total revenue was $4,880,220 (in thousands), compared with $2,863,945 (in thousands) in the second quarter of 2025. The Company attributed the increase to higher membership and rate increases, partially offset by an increase in the net risk adjustment transfer accrual. Total effectuated members were 2,963,002 as of June 30, 2026, compared with 2,027,148 as of June 30, 2025.
Underwriting and expense ratios improved materially. The medical loss ratio was 79.2%, compared with 91.1%, with the Company citing disciplined pricing strategy and $164 million of favorable prior period reserve development. The prior-year quarter included the entire first half impact of the 2025 risk adjustment true-up driven by higher average market morbidity. The SG&A expense ratio was 14.2%, compared with 18.7%, reflecting disciplined expense management, greater fixed cost leverage, and lower risk adjustment as a percentage of premium.
The improved operating profile produced earnings from operations of $388,635 (in thousands), compared with a loss from operations of $(230,483) (in thousands). Net income attributable to Oscar Health, Inc. was $361,808 (in thousands), or $1.10 of diluted earnings per share, compared with a net loss attributable to Oscar Health, Inc. of $(228,361) (in thousands), or $(0.89) of diluted earnings per share. Adjusted EBITDA was $415,349 (in thousands), compared with an Adjusted EBITDA loss of $(199,404) (in thousands). For the six months ended June 30, 2026, earnings from operations were $1,092,720 (in thousands), net income attributable to Oscar Health, Inc. was $1,040,804 (in thousands), and Adjusted EBITDA was $1,142,421 (in thousands).
The updated full-year outlook retains total revenue of $18.7 billion to $19.0 billion while improving the medical loss ratio range to 81.5% to 82.5% from 82.4% to 83.4%, the SG&A expense ratio range to 15.6% to 16.1% from 15.8% to 16.3%, and earnings from operations to $500 million to $700 million from $250 million to $450 million. The guide places the key focus on whether pricing discipline, membership growth, expense leverage and reserve development can support the improved full-year operating targets amid risk adjustment and regulatory uncertainty.
Management, verbatim
Oscar delivered record profitability in the first half of the year and we are raising our full-year 2026 guidance.
Mark Bertolini, CEO of Oscar Health
Our superior operating performance and execution against the fundamentals of our strategy are accelerating the individual market.
Mark Bertolini, CEO of Oscar Health
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported financial metrics
- Printed year-over-year percentage changes for reported financial metrics
- Gross margin
- Gross-margin guidance
- Operating expenses as a dollar amount
- Operating-expenses guidance
- Tax rate
- Tax-rate guidance
- Cash and cash equivalents
- Debt
- Operating cash flow
- Free cash flow
- Share repurchases
- Dividends
- Segment revenue disclosures
- Prior-release outlook for comparison to actual results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The 8-K includes Item 2.02 results for Q2 2026 and an updated full-year 2026 outlook, framed around improved underwriting and disciplined pricing.
Ticker impact
Oscar reported Q2 2026 results with revenue up to $4.88B, MLR down to 79.2%, and raised full-year 2026 guidance.
Likely positive near-term bias as traders reprice FY2026 earnings power; follow-through depends on whether MLR improvement persists beyond prior-period reserve effects.
The filing is a fresh 8-K with updated FY2026 outlook and multiple Q2 operating KPI improvements (MLR, SG&A ratio, operating income, net income).
Market effects
Reinforces the narrative that profitable individual-market insurers can expand margins via disciplined pricing and expense leverage, potentially supporting sector sentiment.
No specific regional impact disclosed beyond US individual health insurance dynamics.
Limited, as the disclosure is company-specific to US healthcare insurance operations.
Counterpoint
MLR improvement may be partly driven by favorable prior-period reserve development, which could reverse and cap forward margin durability.
Key entities
- companyOscar Health, Inc.
US health insurer reporting Q2 2026 results and raising full-year 2026 guidance in an SEC 8-K.
- executiveMark Bertolini
CEO quoted emphasizing record profitability and raised full-year 2026 outlook.
