Oscar Health's Q2 net loss at $228 mln, adjusted EBITDA misses expectations

Overview

• Oscar Health's preliminary Q2 net loss at $228 mln, driven by ACA risk scores

• Co revises 2025 guidance; expects $12.0 bln to $12.2 bln revenue

• Adjusted EBITDA for Q2 misses analyst expectations, per LSEG data

Outlook

• Oscar Health revises 2025 revenue guidance to $12.0 bln-$12.2 bln

• Company expects 2025 medical loss ratio of 86.0%-87.0%

• Oscar anticipates 2025 operational loss of $200 mln-$300 mln

Result Drivers

• HIGHER ACA RISK SCORES - Oscar attributes increased net loss to higher ACA Marketplace risk scores

• ELEVATED UTILIZATION - Member utilization remained elevated, impacting financial results

• COST TRENDS MODERATION - Cost trends moderated in Q2 compared to Q1, per company statement

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and 5 "sell" or "strong sell"

• The average consensus recommendation for the life & health insurance peer group is "buy."

• Wall Street's median 12-month price target for Oscar Health Inc is $11.00, about 23.8% below its July 21 closing price of $13.62

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw9K8yJra