Prime Highlights
- Oscar Health posted a $362 million second-quarter profit, compared with a $228.4 million loss a year earlier.
- The company raised its 2026 earnings outlook to $500 million-$700 million.
Key Facts
- Oscar Health had 2.96 million members at the end of the second quarter, up 46% year-on-year.
- Its medical loss ratio improved to 79.2% from 91.1%.
Background
Oscar Health reported a remarkable second-quarter result, going from a $228.4 million loss to a net profit of $362 million. The health insurer also raised its full-year earnings outlook after reporting strong results in the first half of 2026.
Revenue rose 70% year-on-year to $4.9 billion in the second quarter. The company beat earnings expectations but fell slightly short of revenue estimates. Its medical loss ratio improved to 79.2% from 91.1% a year earlier, showing better control over medical costs.
Oscar Health generated $1.1 billion in earnings from operations and $1 billion in net income during the first six months of 2026. Chief Executive Officer Mark Bertolini said the company achieved record profitability in the first half, supported by disciplined pricing, consumer-focused products and its technology platform.
The company ended the quarter with 2.96 million members, up 46% from a year earlier. Management said membership growth benefited from strong enrollment and customer retention.
Oscar Health now expects full-year earnings of $500 million to $700 million, an increase of $250 million from its earlier outlook. It maintained its revenue forecast at $18.7 billion to $19 billion and expects its full-year medical loss ratio to range between 81.5% and 82.5%.
Despite the strong results, Oscar Health shares fell 13% during the first week of August. The company expects membership churn to increase in the second half as the US government continues eligibility checks and programme integrity reviews. Management expects churn to be about twice its earlier estimate of 1% to 2%.
