I am rating Oscar Health, Inc. (NYSE: OSCR ) as a hold due to a proposed steep budget cut of $163 billion in the 2026 budget estimates. The Health and Human Services (HHS) cut is estimated to be $33.3 billion, an $18 billion cutFirst Principles Partners is an equity research analyst specializing in technology, innovation, and sustainability investment. My unique approach, "First Principles," involves breaking down complex problems to their most basic elements in terms of financial and technology, enabling m ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to__________ Commission File Number: 001-40154 Oscar Health, Inc. (Exact name of registrant as specified in its charter) Delaware 46-1315 ...

Financial Data and Key Metrics Changes - The company reported total revenue of $3 billion for the quarter, a 42% increase year over year [6] - Net income was approximately $275 million, a significant improvement of $98 million over the prior year period [7][22] - Earnings from operations grew by $112 million to $297 million, with an operating margin of 9.8%, an increase of 110 basis points year over year [8][21] - The medical loss ratio (MLR) increased by 120 basis points year over year to 75.4% [8][18] - The selling, general and administrative (SG&A) expense ratio improved to 15.8%, a 260 basis point improvement year over year, marking the lowest in the company's history [8][20] Business Line Data and Key Metrics Changes - The company closed the quarter with approximately 2 million effectuated members, a 41% increase year over year [9][16] - Membership growth was driven by strong retention and above-market growth during open enrollment [16] - The company launched Oscar Community Resources with Find Help, enhancing member services beyond medical care [10] Market Data and Key Metrics Changes - The company noted that the individual market is a cornerstone of American healthcare, driving a record low uninsured rate [13] - The proposed program integrity initiatives by CMS are seen as positive for the long-term sustainability of the market, although the shortened enrollment window may constrain shopping for plans [12][51] Company Strategy and Development Direction - The company aims to deepen market presence through new partnerships and innovative plan designs [10][14] - The focus remains on building a scalable and efficient technology infrastructure to enhance member experience and operational efficiency [11] - The company is engaged with policymakers to advocate for solutions that strengthen the individual market [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 targets due to disciplined execution and strong top-line growth [14][24] - The company anticipates membership trends to rise in the first half of the year but expects a decline in the latter half due to regulatory changes [31] - Management highlighted the importance of a trustworthy market and the need for adequate time for individuals to shop for plans [51] Other Important Information - The company reaffirmed its full-year guidance metrics, expecting total revenue in the range of $11.2 billion to $11.3 billion for 2025 [23][24] - Adjusted EBITDA for the quarter was $329 million, reflecting a substantial year-over-year improvement [22] Q&A Session Summary Question: Membership expectations for the second quarter and the rest of the year - Management expects membership to trend up in the first half of the year but to decline in the latter half due to regulatory changes [31][32] Question: Grace period membership context and its impact on MLR - Management indicated that the gap between effectuated and paid membership is expected to normalize, with prior period development impacting MLR [36][38] Question: Utilization patterns between new and retired members - Management noted higher inpatient utilization with favorable pharmacy trends, but specific drivers were not identified [42] Question: Thoughts on competitor exits and their impact on risk adjustment - Management views competitor exits as an opportunity, emphasizing disciplined pricing and effective risk adjustment [46][62] Question: Regulatory environment and potential impacts on enrollment - Management supports CMS efforts to strengthen ACA integrity but expressed concerns about the shortened enrollment period affecting consumer choice [51] Question: Expectations for risk adjustment as a percentage of premiums - Management does not anticipate significant adjustments to risk adjustment percentages at this time, but elevated claims could impact future expectations [64] Question: Drivers of SG&A performance and future expectations - Management attributed SG&A improvements to fixed cost leverage, variable cost efficiencies, and lower exchange fees, with expectations for gradual increases moving forward [74][75]

Financial Data and Key Metrics Changes - Oscar Health reported total revenue of $3 billion in Q1 2025, a 42% increase year over year [5] - Net income was approximately $275 million, a significant improvement of $98 million over the prior year period [6][20] - Earnings from operations grew by $112 million to $297 million, with an operating margin of 9.8%, an increase of 110 basis points year over year [6][18] - The medical loss ratio (MLR) increased by 120 basis points year over year to 75.4% [6][15] - The SG&A ratio improved to 15.8%, a 260 basis point improvement year over year, marking the lowest in the company's history [6][17] Business Line Data and Key Metrics Changes - The company closed the quarter with approximately 2 million effectuated members, a 41% increase year over year [7][14] - Membership growth was driven by strong retention and above-market growth during open enrollment [14] Market Data and Key Metrics Changes - Oscar Health is deepening its market presence with new partnerships, including the launch of Oscar Community Resources with Find Help, connecting members to local services [8] - The company is experiencing high levels of digital engagement across its IFP and ICRA membership [7] Company Strategy and Development Direction - Oscar Health's strategic plan focuses on top-line growth, bottom-line performance, and margin expansion [6][12] - The company is advocating for constructive solutions to strengthen the individual market and is engaged with policymakers [10][11] - Oscar aims to create a marketplace that meets consumer and employer expectations for choice, quality, and affordability [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 targets, citing disciplined execution and strong growth [12][22] - The current policy environment, including proposed CMS initiatives, is viewed as positive for long-term market sustainability, despite potential enrollment constraints [10][11] - Management anticipates membership trends to increase in the first half of the year but expects a decline in the latter half due to policy changes [29] Other Important Information - The company reaffirmed its full-year guidance metrics, expecting total revenue in the range of $11.2 billion to $11.3 billion for 2025 [21] - Oscar Health's capital position remains strong, with approximately $4.9 billion in cash and investments [20] Q&A Session Summary Question: Membership expectations for the second quarter and the rest of the year - Management expects membership to trend up in the first half of the year but anticipates a decline in the latter half due to policy changes [28][30] Question: Context around grace period membership and its impact - Management indicated that the gap between effectuated and paid membership is expected to normalize, with a portion of members ending their grace period [34] Question: Utilization patterns between new and retired members - Management noted higher inpatient utilization with favorable pharmacy trends, but no specific condition was driving the inpatient increase [39] Question: Opportunities and risks around competitor exits - Management views competitor exits as an opportunity to attract members and maintain disciplined pricing in the market [42][58] Question: Regulatory environment and enrollment changes - Management supports CMS efforts to strengthen the ACA but expressed concerns about the shortened enrollment period affecting consumer shopping [48] Question: Risk adjustment expectations for 2025 - Management indicated no significant adjustments to risk adjustment payables at this time, but elevated claims could impact future percentages [60] Question: Drivers of SG&A performance - Management attributed SG&A improvements to fixed cost leverage, variable cost efficiencies, and lower exchange fee rates [70][71] Question: Valuation concerns and fraudulent member estimates - Management is conducting its own analysis regarding fraudulent members and remains committed to long-term targets despite market challenges [75] Question: CSR refund proposal and its implications - Management expressed concerns about the practical implementation of CSR refunds and recommended against moving forward with the proposal for 2026 [80]

Oscar Health, Inc. (OSCR) came out with quarterly earnings of $0.92 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.62 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.84%. A quarter ago, it was expected that this company would post a loss of $0.58 per share when it actually produced a loss of $0.62, delivering a surprise of -6.90%.Over the last four quarters, the company h ...

"Oscar reported strong financial results in the first quarter," said Mark Bertolini, CEO of Oscar Health. "We delivered continued top- line growth and bottom-line performance with significant year-over-year increases in revenue and net income. We continue to expect meaningful margin expansion this year as we deliver superior value to our members and partners." Oscar is reaffirming its full year 2025 outlook across all metrics as provided in its financial results press release dated February 4, 2025. First Q ...

Company Overview - Oscar Health, Inc. (OSCR) closed at $13.01, reflecting a -1.06% change from the previous day, which is less than the S&P 500's daily gain of 0.15% [1] - Over the past month, shares of Oscar Health have gained 1.39%, while the Finance sector lost 0.33% and the S&P 500 lost 0.21% [1] Upcoming Financial Results - Oscar Health is set to announce its earnings on May 7, 2025, with projected earnings per share (EPS) of $0.83, indicating a 33.87% increase from the same quarter last year [2] - The consensus estimate anticipates revenue of $2.8 billion, reflecting a 30.75% upward movement from the same quarter last year [2] Full Year Projections - For the full year, the Zacks Consensus Estimates project earnings of $0.69 per share and revenue of $11.04 billion, showing changes of +590% and +20.34% respectively from the preceding year [3] Analyst Projections - Recent shifts in analyst projections for Oscar Health should be monitored, as they often indicate changing near-term business trends [4] - Upbeat changes in estimates suggest a favorable outlook on the company's business health and profitability [4] Stock Performance Correlation - Empirical research indicates that revisions in estimates correlate directly with impending stock price performance [5] - The Zacks Rank system, which integrates estimate changes, provides a functional rating system for stocks [5] Zacks Rank and Valuation - Oscar Health currently holds a Zacks Rank of 3 (Hold), with the consensus EPS projection remaining stagnant over the past 30 days [6] - The company is trading at a Forward P/E ratio of 19.06, which is a premium compared to its industry's average Forward P/E of 9.18 [7] Industry Context - The Insurance - Multi line industry, part of the Finance sector, holds a Zacks Industry Rank of 40, placing it in the top 17% of all 250+ industries [7] - The Zacks Industry Rank assesses the strength of industry groups by calculating the average Zacks Rank of individual stocks within those groups [8]

Group 1 - Oscar Health, Inc. closed at $13.61, with a daily increase of +1.8%, outperforming the S&P 500's loss of 4.84% [1] - The stock has decreased by 17.72% over the past month, compared to the Finance sector's loss of 2.42% and the S&P 500's loss of 4.7% [1] Group 2 - The upcoming earnings report is expected to show an EPS of $0.83, reflecting a 33.87% increase from the same quarter last year, with quarterly revenue forecasted at $2.8 billion, up 30.75% year-over-year [2] - For the entire fiscal year, earnings are projected at $0.69 per share and revenue at $11.04 billion, indicating increases of +590% and +20.34% respectively from the previous year [3] Group 3 - Recent changes in analyst estimates suggest a positive outlook for Oscar Health, indicating analysts' confidence in the company's performance and profit potential [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Oscar Health at 3 (Hold) [6] Group 4 - Oscar Health has a Forward P/E ratio of 19.38, which is a premium compared to the industry's average Forward P/E of 10.13 [7] - The Insurance - Multi line industry, part of the Finance sector, holds a Zacks Industry Rank of 33, placing it in the top 14% of over 250 industries [7]

Group 1 - Oscar Health, Inc. (OSCR) closed at $14.19, reflecting a +1.65% change from the previous day's closing price, outperforming the S&P 500's 0.16% gain [1] - Over the past month, Oscar Health's shares have decreased by 8.58%, which is worse than the Finance sector's loss of 0.19% and the S&P 500's loss of 3.59% [1] Group 2 - The upcoming earnings report for Oscar Health is expected to show an EPS of $0.83, a 33.87% increase year-over-year, with revenue anticipated at $2.8 billion, a 30.75% rise compared to the same quarter last year [2] - For the full year, earnings are projected at $0.69 per share and revenue at $11.04 billion, indicating increases of +590% and +20.34% respectively from the previous year [3] Group 3 - Recent revisions to analyst forecasts for Oscar Health are important as they reflect short-term business trends and can indicate analyst optimism regarding the company's profitability [4] - The Zacks Rank system, which incorporates estimate changes, currently rates Oscar Health at 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [6] Group 4 - Oscar Health has a Forward P/E ratio of 20.23, which is significantly higher than the industry average of 10.24, indicating that the company is trading at a premium compared to its peers [7] - The Insurance - Multi line industry, to which Oscar Health belongs, holds a Zacks Industry Rank of 39, placing it in the top 16% of over 250 industries [7]

Oscar Health, Inc. (OSCR) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this company have returned -19.6%, compared to the Zacks S&P 500 composite's -7.5% change. During this period, the Zacks Insurance - Multi line industry, which Oscar Health falls in, has gained 3.1%. The key question now is: What could be the stock's future direction?While media rel ...