Oscar Health, Inc. (OSCR) | Investment Case

1. Company Snapshot

1.a. Company Description

Oscar Health, Inc.provides health insurance products and services in the United States.The company offers Individual & Family, Small Group, and Medicare Advantage plans, as well as +Oscar, a technology driven platform designed to help providers and payor clients to engage with members and patients.

It also provides reinsurance products.The company was formerly known as Mulberry Health Inc.and changed its name to Oscar Health, Inc.

in January 2021.Oscar Health, Inc.was incorporated in 2012 and is headquartered in New York, New York.

Show Full description

1.b. Last Insights on OSCR

Breaking News: Oscar Health Inc recently presented at the UBS Global Healthcare Conference 2025, where CFO Richard Blackley participated. The company also announced the launch of new affordable health insurance plans for individuals, families, and businesses in Southern Florida for the 2026 Open Enrollment. Meanwhile, shares were down 15.9% to $14.98 amid concerns over potential healthcare disruption. No recent earnings release was found. Analysts at UBS have not provided a clear recommendation, however some other analysts recommend a hold .

1.c. Company Highlights

Last Price	14.85
Change Percentage	1.64%
Open	14.73
Previous Close	14.61
Market Cap ( Millions)	3793
Volume	16828243
Year High	23.8
Year Low	11.2
M A 50	19.13
M A 200	16.02

FCF Yield	19.39%
Dividend Yield	0.00%
ROE	-21.56%
Debt / Equity	67.02%
Net Debt / EBIDTA	935.47%
Price To Book	3.7
Price Earnings Ratio	-15.54
Price To FCF	5.16
Price To sales	0.34
EV / EBITDA	-14.91

2. Oscar Health Q2 2025 Earnings: Navigating Market Headwinds

Oscar Health reported a second quarter 2025 revenue of $2.9 billion, a 29% year-over-year increase driven by membership growth. However, the Medical Loss Ratio (MLR) surged to 91.1% due to elevated market morbidity, resulting in a loss from operations of $230 million. This significant loss, coupled with a $500 million loss in the second quarter, has put pressure on the company's excess capital, which decreased from $907 million at the start of the year to $577 million.

Publication Date: Aug -09

                                    📋 Highlights
                                    Revenue Growth::
                                                Q2 2025 revenue reached $2.9 billion (29% YoY), driven by membership expansion.
MLR Increase::
                                                Medical Loss Ratio rose to 91.1% due to higher morbidity, resulting in a $230 million operational loss.
Capital Reduction::
                                                Excess capital fell by $330 million (from $907M to $577M) due to risk adjustment payables, capital requirements, and cash flow shifts.
Cost-Saving Measures::
                                                $60 million administrative cost reduction planned for 2026, alongside workforce reductions to improve profitability.
2025 Guidance::
                                                Maintains $12–12.2 billion revenue target with an operational loss of $200–300 million, and adjusted EBITDA loss $120M lower than the operational loss.

                                

Pricing and Cost Management Strategies

To address these challenges, Oscar is implementing a multi-pronged approach. They are repricing for 2026, aiming for rate increases comparable to larger peers, considering market dynamics and anticipated shifts in morbidity and subsidies. Additionally, the company is targeting a reduction in administrative costs by $60 million in 2026 and exploring opportunities through ICHRA with employers and consumer brands.

Looking Ahead: Challenges and Opportunities

Despite the current difficulties, Oscar remains optimistic about its long-term profitability and growth potential. The company attributes its membership growth to both new sign-ups (including an increase in $0 plans) and improved retention rates. They are closely monitoring market morbidity, particularly as enhanced program integrity rules have been implemented. While they acknowledge potential pressures, their current data does not indicate a significant worsening of morbidity trends. Oscar expects a sequential improvement in its SG&A guidance for the full year 2025 due to these cost-saving measures.

Valuation Metrics: A Mixed Picture

Oscar Health's current valuation metrics reflect the market's uncertainty surrounding the company's profitability trajectory. With a P/E ratio of -24.3 and an EV/EBITDA of -16.06, the market appears to be pricing in significant risks. However, a high Free Cash Flow Yield of 31.14% suggests that investors may be seeing potential value in the company's future cash generation capabilities.

3. NewsRoom

Oscar Health, Inc. (OSCR) Presents at UBS Global Healthcare Conference 2025 Transcript

Nov -10

Source: seekingalpha.com

Obamacare Stock Stung by Potential Healthcare Disruption

Nov -10

Source: schaeffersresearch.com

Oscar Launches New Affordable Health Insurance Choices for Southern Florida Individuals, Families, and Businesses

Nov -10

Source: businesswire.com

Oscar Health, Inc. (OSCR) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

Oscar Health Misses Q3 Revenue, Loss Widens To $129 Million Despite Membership Surge

Nov -06

Source: benzinga.com

Compared to Estimates, Oscar Health (OSCR) Q3 Earnings: A Look at Key Metrics

Nov -06

Source: zacks.com

Oscar Health, Inc. (OSCR) Reports Q3 Loss, Lags Revenue Estimates

Nov -06

Source: zacks.com

Obamacare Insurer Oscar Health Sees 2026 ‘Return To Profitability'

Nov -06

Source: forbes.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.98%)

6. Segments

Insurance and Related Activities

Expected Growth: 9.98%

Oscar Health, Inc.'s 9.98% growth in Insurance and Related Activities is driven by increasing demand for affordable healthcare, expansion into new markets, and strategic partnerships. Additionally, the company's user-friendly technology platform and data-driven approach to healthcare have improved customer engagement and retention, contributing to its growth.

7. Detailed Products

Individual and Family Plans

Oscar Health offers individual and family health insurance plans that provide comprehensive coverage for medical expenses, including doctor visits, hospital stays, and prescriptions.

Small Group Plans

Oscar Health offers small group health insurance plans designed for businesses with 1-50 employees, providing comprehensive coverage and flexible plan options.

Medicare Advantage Plans

Oscar Health offers Medicare Advantage plans that provide comprehensive coverage for seniors and individuals with disabilities, including medical, hospital, and prescription drug coverage.

Oscar for Business

Oscar for Business is a health insurance platform designed for larger businesses, providing customizable plan options, data analytics, and personalized support.

Oscar Virtual Care

Oscar Virtual Care is a telemedicine platform that provides 24/7 access to virtual doctor visits, allowing members to receive medical care from the comfort of their own homes.

8. Oscar Health, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Oscar Health, Inc. operates in a highly competitive market with many substitutes available, but its unique selling proposition and customer loyalty programs help to mitigate the threat.

Bargaining Power Of Customers

Oscar Health, Inc. customers have a high bargaining power due to the availability of alternative health insurance providers, which can lead to a loss of customers if prices are not competitive.

Bargaining Power Of Suppliers

Oscar Health, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers, and the company's scale of operations also gives it negotiating power.

Threat Of New Entrants

While there are barriers to entry in the health insurance market, new entrants can still disrupt the market, and Oscar Health, Inc. needs to continuously innovate to stay ahead of the competition.

Intensity Of Rivalry

The health insurance market is highly competitive, with many established players, and Oscar Health, Inc. needs to differentiate itself through its products and services to gain market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	27.09%
Debt Cost	8.13%
Equity Weight	72.91%
Equity Cost	12.19%
WACC	11.09%
Leverage	37.16%

11. Quality Control: Oscar Health, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Neurocrine Biosciences

A-Score: 5.8/10

Value: 1.9

Growth: 9.3

Quality: 8.3

Yield: 0.0

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

United Therapeutics

A-Score: 5.5/10

Value: 3.8

Growth: 8.6

Quality: 8.2

Yield: 0.0

Momentum: 8.5

Volatility: 4.0

1-Year Total Return ->

Viatris

A-Score: 5.3/10

Value: 8.9

Growth: 2.2

Quality: 3.3

Yield: 7.0

Momentum: 3.0

Volatility: 7.3

1-Year Total Return ->

Elevance Health

A-Score: 4.8/10

Value: 6.6

Growth: 5.7

Quality: 6.8

Yield: 3.0

Momentum: 0.5

Volatility: 6.3

1-Year Total Return ->

Oscar Health

A-Score: 4.6/10

Value: 8.2

Growth: 8.2

Quality: 4.4

Yield: 0.0

Momentum: 6.0

Volatility: 1.0

1-Year Total Return ->

Molina Healthcare

A-Score: 3.9/10

Value: 8.0

Growth: 6.3

Quality: 5.7

Yield: 0.0

Momentum: 0.0

Volatility: 3.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-8.87%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

11.09%

Oscar Health, Inc. - US6877931096

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on OSCR

1.c. Company Highlights

Strong Momentum

Fairly Valued

Average Growth

Earnings Beats

Revenues Beats

Medium Volatility

Higher Growth

Earnings Miss

Average Quality

Revenues Miss

Stable Momentum

Better Quality

Average Yield

2. Oscar Health Q2 2025 Earnings: Navigating Market Headwinds

Pricing and Cost Management Strategies

Looking Ahead: Challenges and Opportunities

Valuation Metrics: A Mixed Picture

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.98%)

6. Segments

Insurance and Related Activities

Expected Growth: 9.98%

7. Detailed Products

Individual and Family Plans

Small Group Plans

Medicare Advantage Plans

Oscar for Business

Oscar Virtual Care

8. Oscar Health, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Oscar Health, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.85$

Current Price

14.85$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA