Oscar Health (OSCR) investor relations material

Executive summary

• Achieved record profitability in the first half of 2026, with $1.1 billion in earnings from operations and $1 billion in net income, prompting an increase in full-year guidance.

• Second quarter revenue grew 70% year-over-year to $4.88 billion, with first half revenue at $9.53 billion, driven by higher membership and rate increases.

• Membership reached approximately 3.0 million as of June 30, 2026, up 46% year-over-year, reflecting strong open enrollment growth and retention.

• Technology and AI initiatives drove operational efficiencies, supporting margin expansion and cost control.

• Strong operating performance driven by disciplined pricing, scalable technology, and consumer-focused products.

Financial highlights

• Premium revenue rose 71% to $4.79 billion for Q2 2026; investment income increased 57% to $84.8 million.

• Medical loss ratio (MLR) improved to 79.2% for Q2 2026 from 91.1% in Q2 2025, aided by favorable reserve development and pricing discipline.

• SG&A expense ratio hit a record low of 14.2%, a 450 basis point improvement year-over-year.

• Earnings from operations were $389 million in Q2, a $619 million year-over-year increase; net income was $362 million, up $590 million.

• Adjusted EBITDA reached $415 million in Q2 2026, compared to a loss of $199.4 million in Q2 2025.

Outlook and guidance

• Raised full-year 2026 earnings from operations guidance to $500–$700 million, up $250 million from prior outlook.

• Full-year revenue expected at $18.7–$19 billion; MLR guidance improved to 81.5%–82.5% (90 bps better at midpoint).

• SG&A expense ratio guidance improved to 15.6%–16.1%; adjusted EBITDA expected to run $115 million above earnings from operations.

• Management expects continued regulatory and market volatility due to changes in ACA subsidies, program integrity rules, and new tariffs on pharmaceuticals.

• Outlook reflects strong first-half performance, favorable prior period development, and positive market morbidity trends.