Oscar Health Reports 29% Revenue Growth but $228.4 Million Net Loss in Latest Quarter

Oscar Health, Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending June 30, 2025. The company generated total revenue of $2.86 billion, a 29% increase from $2.22 billion in the same quarter of 2024. Premium revenue alone rose by 30% to $2.80 billion, driven by a 28% increase in membership, which reached approximately 2.0 million effectuated members. However, the company also reported a net loss of $228.4 million for the quarter, compared to a net income of $56.3 million in the prior year, reflecting a substantial shift in profitability.

The increase in revenue was accompanied by a notable rise in operating expenses, which totaled $3.09 billion, up from $2.15 billion a year earlier. Medical expenses surged by 49% to $2.55 billion, primarily due to the increased membership and rising medical costs. The Medical Loss Ratio (MLR) also increased to 91.1% from 79.0% in the previous year, indicating a higher proportion of premiums being spent on medical care. Selling, general, and administrative expenses rose by 23% to $534.5 million, reflecting the costs associated with servicing a larger member base.

In terms of strategic developments, Oscar Health completed the acquisition of three businesses in May 2025, enhancing its capabilities in the individual market. This included INSXCloud, Inc., IHC Specialty Benefits, Inc., and Healthinsurance.org, LLC, which are expected to bolster Oscar's technology platform and service offerings. The company continues to focus on leveraging its technology to improve member experience and engagement.

Operationally, Oscar Health's membership growth was attributed to above-market performance during the 2025 Open Enrollment period. The company reported a total of 2,027,148 members as of June 30, 2025, compared to 1,580,725 in the previous year. The company also noted an increase in risk adjustment transfer payables, which reflects the higher average morbidity of its member population. The company’s cash and cash equivalents increased to $2.60 billion, up from $1.53 billion at the end of 2024, providing a solid liquidity position to support ongoing operations.

Looking ahead, Oscar Health anticipates continued challenges related to regulatory changes and market dynamics, particularly concerning the potential expiration of enhanced Advanced Premium Tax Credits (APTCs) at the end of 2025. The company is focused on managing its growth effectively while navigating these uncertainties, with an emphasis on maintaining its member base and optimizing operational efficiencies.