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Sep 30, 2025
Oscar Health Q3 2025 Earnings Report
Oscar Health reported its financial results for the third quarter ended September 30, 2025, and reaffirmed its full year 2025 outlook.
Key Takeaways
Oscar Health experienced significant revenue growth in Q3 2025, reaching $2.986 billion, primarily driven by higher membership. However, the company reported increased losses, with a net loss of $137.5 million and an Adjusted EBITDA loss of $101.5 million, largely due to an increase in the net risk adjustment transfer accrual. Despite the losses, the SG&A expense ratio improved due to greater fixed cost leverage and disciplined cost management.
Total revenue for Q3 2025 increased to $2.986 billion, up from $2.423 billion in Q3 2024, driven by higher membership.
The company reported a net loss attributable to Oscar Health, Inc. of $137.5 million, or $(0.53) per diluted share, compared to a net loss of $54.6 million, or $(0.22) per diluted share, in Q3 2024.
Adjusted EBITDA loss widened to $101.5 million in Q3 2025 from $11.6 million in Q3 2024, primarily due to an increase in the net risk adjustment transfer accrual.
The SG&A expense ratio improved to 17.5% in Q3 2025 from 19.0% in Q3 2024, reflecting greater fixed cost leverage and disciplined cost management.
Forward Guidance
Oscar Health reaffirmed its full year 2025 outlook across all metrics, anticipating continued revenue growth and an improvement in operating loss compared to the previous year's reported loss.
Positive Outlook
- Total Revenue is projected to be between $12.0 billion and $12.2 billion for the full year 2025.
- Medical Loss Ratio is expected to be between 86.0% and 87.0% for the full year 2025.
- SG&A Expense Ratio is anticipated to be between 17.1% and 17.6% for the full year 2025.
- Loss from Operations is projected to be between $(300) million and $(200) million for the full year 2025.
- The company is confident in its ability to expand margins and return to profitability in 2026.
Challenges Ahead
- Loss from Operations is still projected for the full year 2025, indicating continued unprofitability in the short term.
- The Medical Loss Ratio guidance remains relatively high, suggesting ongoing significant medical expenses relative to premiums.
- The company's ability to achieve profitability in 2026 is a forward-looking statement and subject to various risks and uncertainties.
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