Oscar(US:OSCR)2025-11-06 11:10Financial Performance - Total revenue for Q3 2025 was approximately $2.99 billion, a 23.3% increase from $2.42 billion in Q3 2024[3]. - Loss from operations for Q3 2025 was $129.3 million, compared to a loss of $48.4 million in Q3 2024[3][12]. - Net loss attributable to Oscar Health, Inc. was $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[3][12]. - Adjusted EBITDA loss for Q3 2025 was $101.5 million, compared to a loss of $11.6 million in Q3 2024[3][12]. - Operating expenses for Q3 2025 totaled $3,115,234, a significant rise from $2,471,856 in Q3 2024, reflecting a 26% increase[21]. - Net income attributable to Oscar Health, Inc. for the three months ended September 30, 2025, was $(137,484) thousand, compared to $(54,388) thousand for the same period in 2024, indicating a significant increase in losses[36]. - The company reported earnings (loss) from operations of $(129,250) thousand for the three months ended September 30, 2025, compared to $(48,374) thousand in 2024, indicating a worsening operational performance[36]. Membership and Revenue Growth - Total membership reached 2,116,904 as of September 30, 2025, up from 1,654,284 in 2024, indicating strong growth in individual and small group offerings[4]. - Premium revenue for the nine months ended September 30, 2025, was $8,723,233, up 31.8% from $6,626,055 in the same period of 2024[21]. - Direct policy premiums for the three months ended September 30, 2025, reached $3,646,308 thousand, up from $2,687,883 thousand in 2024, representing a growth of approximately 35.8%[38]. Medical Loss Ratio and Expenses - Medical loss ratio for Q3 2025 was 88.5%, up from 84.6% in Q3 2024, primarily due to increased average market morbidity[3][12]. - Medical Loss Ratio (MLR) for Q3 2025 was 88.5%, compared to 84.6% in Q3 2024, indicating an increase in medical expenses relative to premiums[30]. - Medical expenses for the three months ended September 30, 2025, totaled $2,586,330 thousand, compared to $2,003,979 thousand in 2024, reflecting an increase of about 29.0%[38]. Cost Management - SG&A expense ratio improved to 17.5% in Q3 2025 from 19.0% in Q3 2024, attributed to better fixed cost leverage and disciplined cost management[3][12]. - SG&A expenses for the nine months ended September 30, 2025, were $1,538,836, up from $1,289,745 in the same period of 2024, reflecting a 19.3% increase[21]. - Selling, general, and administrative expenses for the three months ended September 30, 2025, were $521,592 thousand, compared to $459,522 thousand in 2024, marking an increase of approximately 13.5%[38]. Capital Structure and Guidance - Oscar Health entered into an exchange agreement to manage its capital structure, involving approximately $250 million of convertible senior notes[10][11]. - Full year 2025 revenue guidance is set between $12.0 billion and $12.2 billion, with a medical loss ratio expected between 86.0% and 87.0%[5]. - The company is focused on expanding margins and returning to profitability in 2026, supported by disciplined pricing and geographic expansion strategies[2]. Assets and Liabilities - Cash and cash equivalents as of September 30, 2025, were $2,148,865, an increase from $1,527,186 at the end of 2024[23]. - Total assets increased to $5,745,877 as of September 30, 2025, compared to $4,840,496 at the end of 2024, representing an 18.7% growth[23]. - Long-term debt rose to $686,294 as of September 30, 2025, compared to $299,555 at the end of 2024, indicating a significant increase in leverage[23]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $422,951, down from $631,373 in the same period of 2024[25]. Reinsurance and Interest Expense - Reinsurance recoverable as of September 30, 2025, was $159,391 thousand, down from $291,537 thousand as of December 31, 2024, indicating a decrease of approximately 45.5%[38]. - Interest expense for the nine months ended September 30, 2025, was $18,698 thousand, compared to $17,708 thousand in 2024, reflecting a rise of about 5.6%[36]. Stock-Based Compensation - Stock-based compensation for the nine months ended September 30, 2025, was $69,569 thousand, down from $83,969 thousand in 2024, representing a decrease of approximately 17.2%[36].