Oscar Health, Inc

Oscar Health, Inc (NYSE: OSCR) is a healthcare technology company centered around a comprehensive, integrated technology platform. Its services include both a health insurance business and the +Oscar platform. The company's health plans are primarily available in the individual insurance market.

• Robust Revenue Growth Driven by Membership Expansion: Oscar Health, Inc. delivered strong financial results for the first quarter of 2025, demonstrating continued top-line momentum. Total revenue for the quarter reached approximately USD 3.05 billion, marking a 42% increase compared to the same period in 2024, when revenue stood at USD 2.14 billion. This growth was primarily driven by a significant increase in individual and small group membership, which rose from approximately 1.39 million to over 2.02 million year-over-year.
• Improved Operational Efficiency and Cost Management: The company reported a medical loss ratio (MLR) of 75.4% for Q1 2025, slightly higher than the 74.2% reported in Q1 2024. This increase was influenced by a USD 31 million unfavorable prior period development, primarily attributed to an increase in the 2024 Risk Adjustment payable. This was partially offset by favorable claims runout and a cost-sharing reduction recovery related to previous years. Despite the slight MLR increase, Oscar Health improved its SG&A expense ratio, which decreased to 15.8% from 18.4% in the prior-year quarter, reflecting effective cost control and operational efficiencies.
• Significant Growth in Earnings from Operations: Oscar Health achieved strong bottom-line performance in the first quarter of 2025. Earnings from operations increased to USD 297.1 million, up from USD 185.6 million in Q1 2024. This 60% increase underscores the benefits of fixed cost leverage and enhanced operating efficiencies, which were supported by higher overall membership levels and disciplined expense management.
• Substantial Increase in Net Income: The company reported net income attributable to Oscar Health, Inc. of USD 275.3 million for the first quarter of 2025, a substantial improvement from USD 177.4 million in the same period last year. This represents diluted earnings per share of USD 0.92, up from USD 0.62 in Q1 2024, reflecting strong operational execution and profitability growth.
• Adjusted EBITDA Reflects Strong Underlying Performance: Oscar Health also reported a robust increase in Adjusted EBITDA, a key non-GAAP metric. Adjusted EBITDA for Q1 2025 totaled USD 328.8 million, compared to USD 219.3 million in Q1 2024. This 50% increase highlights the company's solid financial foundation and continued improvements in operational efficiency and scale. Adjusted EBITDA excludes certain items to better represent the underlying earnings power of the business.
• Membership Growth and Outlook Reaffirmation: As of March 31, 2025, total effectuated membership reached approximately 2.04 million, up from 1.45 million a year earlier. The growth was largely driven by gains in the Individual and Small Group segment, which offset the decline in membership from the discontinued Cigna+Oscar co-branded partnership. Oscar Health reaffirmed its full-year 2025 financial outlook across all metrics as previously disclosed on February 4, 2025, underscoring management’s confidence in sustained margin expansion and value delivery to members and partners.

Technical Observation (on the daily chart):

Oscar Health (OSCR) is showing strong bullish momentum, with the stock recently breaking out of a multi-month consolidation and trading above both its 21-day and 50-day moving averages. A bullish crossover between these MAs reinforces the uptrend, supported by rising volume. The RSI at 66 indicates strong momentum but is nearing overbought territory.

Oscar Health delivered a strong start to 2025, reporting significant year-over-year growth in revenue, net income, and Adjusted EBITDA, driven by a substantial increase in membership and continued operational efficiencies. The company improved its SG&A expense ratio and maintained stable medical cost management despite headwinds from prior period developments. With robust earnings from operations and enhanced profitability, Oscar reaffirmed its full-year outlook, signaling confidence in sustained margin expansion and its ability to deliver long-term value to members and stakeholders.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to Oscar Health, Inc (NYSE: OSCR) at the current market price of USD 16.82 as of May 20,2025 at 07:45 AM PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is May 20,2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.