Oscar Health — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the three months ended September 30, 2026, was $5.14 billion, compared to $2.99 billion in the same period in 2025.
• Total revenue for the nine months ended September 30, 2026, was $14.67 billion, compared to $8.90 billion in the same period in 2025.
• Earnings from operations for the three months ended September 30, 2026, were $178.0 million, compared to a loss of $129.3 million in 2025.
• Earnings from operations for the nine months ended September 30, 2026, were $1.27 billion, compared to a loss of $62.6 million in 2025.
• Net income attributable to Oscar Health, Inc. for the three months ended September 30, 2026, was $167.3 million ($0.49 diluted EPS), compared to a net loss of $137.5 million ($(0.53) diluted EPS) in 2025.
• Net income attributable to Oscar Health, Inc. for the nine months ended September 30, 2026, was $1.21 billion ($3.59 diluted EPS), compared to a net loss of $90.5 million ($(0.35) diluted EPS) in 2025.
• Adjusted EBITDA for the three months ended September 30, 2026, was $206.9 million, compared to a loss of $101.5 million in 2025.
• Adjusted EBITDA for the nine months ended September 30, 2026, was $1.35 billion, compared to $28.0 million in 2025.
• Medical loss ratio (MLR) for the three months ended September 30, 2026, was 84.0%, compared to 88.5% in 2025.
• MLR for the nine months ended September 30, 2026, was 78.1%, compared to 84.8% in 2025.
• SG&A expense ratio for the three months ended September 30, 2026, was 14.0%, compared to 17.5% in 2025.
• SG&A expense ratio for the nine months ended September 30, 2026, was 14.4%, compared to 17.3% in 2025.
• Cash and cash equivalents as of September 30, 2026, were $4.47 billion, compared to $2.77 billion as of December 31, 2025.
• Long-term debt as of September 30, 2026, was $432.4 million, compared to $430.1 million as of December 31, 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $3.51 billion, compared to $423.0 million in 2025.

Guidance and Future Outlook:

• Oscar Health raised its full-year 2026 earnings from operations outlook to a range of $850 million to $950 million, up from the previous range of $600 million to $800 million.
• The company raised its full-year 2026 total revenue outlook to a range of $19.0 billion to $19.3 billion, up from the previous range of $18.7 billion to $19.0 billion.
• The company raised its full-year 2026 MLR outlook to a range of 80.5% to 81.5%, down from the previous range of 81.0% to 82.0%.
• The company raised its full-year 2026 SG&A expense ratio outlook to a range of 15.1% to 15.6%, down from the previous range of 15.6% to 16.1%.
• Management stated the company is on track to deliver the strongest year of financial performance in its history.
• Management expects to grow market share and expand margins in 2027.

Business Segments and Product Lines:

• Effectuated membership as of September 30, 2026, was 2,691,885, compared to 2,116,904 in 2025.
• Individual and Small Group membership as of September 30, 2026, was 2,691,885, compared to 2,111,736 in 2025.
• The company no longer offers small group plans effective December 15, 2024.
• The company did not renew its Cigna+Oscar Small Group arrangement after its initial term ended on December 31, 2024.
• The company continues to provide transition and run-off services for the former Cigna+Oscar partnership through December 31, 2026.
• Revenue for the third quarter of 2026 included a $250 million benefit from updated risk adjustment estimates.
• The company had $42 million of favorable prior period development in the third quarter of 2026, compared to $84 million in the third quarter of 2025.

Market and Competitive Landscape:

• Management stated the ACA is the foundation of a rapidly-developing individual market in America.
• The company attributes improved MLR to a disciplined pricing strategy.
• The company attributes lower SG&A expense ratio to lower risk adjustment as a percentage of premium, greater fixed cost leverage, and disciplined expense management.
• The company attributes improved earnings from operations to strong operating performance driven primarily by improved underwriting performance.

Risks and Challenges:

• Forward-looking statements are subject to risks including the ability to execute strategy, manage growth, and successfully integrate strategic acquisitions.
• Risks include the ability to retain and expand the member base and accurately estimate incurred medical expenses or market morbidity.
• Risks include unanticipated results of, or changes to, risk adjustment programs or estimates thereof.
• Risks include evolving federal or state laws or regulations, including changes to the ACA, expiration of enhanced Advanced Premium Tax Credits, and new program integrity rules.
• Risks include the potential funding of a cost-sharing reduction program or other government actions such as the imposition of tariffs.
• Risks include the ability to achieve or maintain profitability, arrange for quality care delivery, and maintain good relations with providers and brokers.
• Risks include compliance with complex and evolving regulatory requirements, including capital reserve and surplus requirements.
• Risks include the ability to utilize quota share reinsurance to meet capital and surplus requirements.
• Risks include adverse market conditions affecting the investment portfolio or financing needs.
• Risks include unfavorable outcomes of lawsuits, audits, investigations, or third-party claims related to fraud, waste, and abuse laws.
• Risks include data security breaches of information and technology systems.
• Risks include heightened competition in the markets in which the company participates.
• Risks include uncertainties associated with the utilization of artificial intelligence and machine learning models.
• Risks include the ability to detect and prevent material weaknesses in internal controls over financial reporting.
• Risks include adverse publicity related to the dual-class structure or "controlled company" status.

Management Commentary and Tone:

• Mark Bertolini, CEO, stated the company is on track to deliver the strongest year of financial performance in its history.
• Bertolini noted the company is raising its earnings from operations outlook for a third time.
• Bertolini stated Oscar Health is built to lead the rapidly-developing individual market in America.
• Bertolini highlighted that disciplined pricing, consumer-led products, and a technology-powered approach are driving stronger economics.
• Bertolini expressed confidence that these factors position the company to grow market share and expand margins in 2027.

Other Key Points:

• The company hosted a conference call on November 5, 2026, to discuss financial results.
• The company serves consumers, employers, brokers, and partners through Oscar Insurance, Lucie Health Marketplace, and Trove Group.
• The company's Class A common stock trades on the NYSE under the ticker symbol OSCR.
• The company recorded $11.9 million in tax payments related to the net settlement of share-based awards for the nine months ended September 30, 2026.
• The company paid $3.4 million in earn-out liability payouts for the nine months ended September 30, 2026.
• The company paid $6.0 million in debt issuance costs for the nine months ended September 30, 2026.
• The company received $41.8 million in proceeds from the exercise of stock options and stock purchase agreements for the nine months ended September 30, 2026.
• The company did not receive proceeds from long-term debt for the nine months ended September 30, 2026, compared to $410.0 million in 2025.
• The company purchased $4.58 billion in investments for the nine months ended September 30, 2026.
• The company sold $1.15 billion in investments for the nine months ended September 30, 2026.
• The company purchased $31.9 million in property, equipment, and capitalized software for the nine months ended September 30, 2026.
• The company's total assets increased to $10.01 billion as of September 30, 2026, from $6.33 billion as of December 31, 2025.
• Total stockholders' equity increased to $2.23 billion as of September 30, 2026, from $980.7 million as of December 31, 2025.