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Jun 30, 2024

Oscar Health Q2 2024 Earnings Report

Oscar Health reported strong second quarter results, closing out the best six months in the company's history.

Key Takeaways

Oscar Health reported strong second quarter results with robust revenue growth, improved operating margin, and strong bottom line performance. The company updated its full year 2024 guidance, projecting revenue to be in the $9.0 billion to $9.1 billion range and Adjusted EBITDA to be in the $160 million to $210 million range.

Total Revenue of $2.2 billion, a 46% increase YoY

Medical Loss Ratio of 79.0%, a 90 bps improvement YoY

SG&A Expense Ratio of 19.6%, a 260 bps improvement YoY

Net income attributable to Oscar of $56.2 million, or $0.20 of diluted earnings per share, a $71.7 million improvement YoY

Total Revenue
$2.22B
Previous year: $1.52B
+45.9%
EPS
$0.2
Previous year: -$0.07
-385.7%
Medical Loss Ratio
79%
Previous year: 79.9%
-1.1%
Gross Profit
$2.22B
Previous year: $1.52B
+45.9%
Cash and Equivalents
$2.27B
Previous year: $2.32B
-2.3%
Free Cash Flow
$490M
Total Assets
$4.76B
Previous year: $4.56B
+4.4%

Oscar Health

Oscar Health

Forward Guidance

Oscar is updating its full year 2024 outlook to reflect first half outperformance. The Company projects Revenue to be in the $9.0 billion to $9.1 billion range, $700 million above the prior range of $8.3 billion to $8.4 billion, and Adjusted EBITDA to be in the $160 million to $210 million range, $35 million higher than the prior range of $125 million to $175 million. Additionally, the Company now projects a lower SG&A Expense Ratio in the range of 19.75% to 20.25%, and a modestly higher Medical Loss Ratio in the range of 80.5% to 81.5%.

Positive Outlook

  • Revenue to be in the $9.0 billion to $9.1 billion range
  • Revenue is $700 million above the prior range of $8.3 billion to $8.4 billion
  • Adjusted EBITDA to be in the $160 million to $210 million range
  • Adjusted EBITDA is $35 million higher than the prior range of $125 million to $175 million
  • SG&A Expense Ratio in the range of 19.75% to 20.25%

Challenges Ahead

  • Medical Loss Ratio in the range of 80.5% to 81.5%