Oscar Health (OSCR) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 results with total revenue up 42% year-over-year to $3.05 billion and membership reaching approximately 2 million, reflecting a 41% increase and strong retention.

• Net income attributable to Oscar Health, Inc. increased 55% year-over-year to $275.3 million, driven by higher premium revenue and improved operating leverage.

• Enhanced digital engagement, operational efficiency, and new technology features contributed to improved member experience and cost management.

• Launched Oscar Community Resources and AI-driven care guides, and introduced live chat for Virtual Urgent Care.

Financial highlights

• Premium revenue increased 43% year-over-year to $2.996 billion, with total revenue at $3.05 billion, primarily due to higher membership.

• Net income reached $275.3 million, up from $177.4 million in Q1 2024.

• Adjusted EBITDA was $329 million, up approximately $110 million year-over-year.

• Earnings from operations grew to $297.1 million, up from $185.6 million in Q1 2024.

• SG&A expense ratio dropped to 15.8%, a 260 basis point improvement and the lowest in company history.

Outlook and guidance

• Reaffirmed full-year 2025 guidance: total revenue expected at $11.2–$11.3 billion.

• Full-year MLR expected in the range of 80.7%–81.7%.

• SG&A expense ratio guidance remains at 17.6%–18.1%.

• Earnings from operations projected at $225–$275 million; adjusted EBITDA expected to be $140 million higher.

• Membership expected to trend up in the first half, then down in the second half, ending near 1.8 million.

• Anticipates lower Special Enrollment Period (SEP) membership growth in 2025 compared to 2024.

• Expects potential headwinds from the expiration of enhanced APTCs and new CMS Program Integrity Rules.