The New York-based insurer saw its medical loss ratio (MLR)—a key metric representing the portion of premiums paid out for medical claims—climb to 95.4%. This figure significantly overshot the 91.1% anticipated by Wall Street and the 88.1% reported in the same period last year. Oscar Health’s struggle reflects a broader industry trend where major carriers, including UnitedHealth Group, face rising costs as an aging U.S. population increasingly utilizes healthcare services.

CEO Mark Bertolini described 2025 as a "reset year" for the individual insurance market, emphasizing that the company is taking aggressive steps to stabilize its financial trajectory. To bolster its liquidity during this transition, Oscar Health secured a $475 million three-year revolving credit facility. Despite the quarterly earnings miss, the company’s scale continues to expand, reaching 2 million members compared to 1.68 million a year earlier.

The Path to 2026 Profitability

Looking beyond the current fiscal volatility, Oscar Health issued ambitious guidance for 2026 that hinges on tighter cost controls and membership growth. The company expects to lower its medical loss ratio to a range of 82.4% to 83.4%, a move essential for achieving its bottom-line targets.

For the 2026 fiscal year, the company has set the following benchmarks:

• Total revenue between $18.7 billion and $19 billion.
• Operating earnings in a range of $250 million to $450 million.
• Sustained membership growth in the individual and small business segments.

Investors reacted positively to the long-term roadmap and the narrowing focus on profitability. Shares of Oscar Health climbed 5.4% to $13.34 in premarket trading on Tuesday, even as the company reported a quarterly loss of $1.24 per share, which was nearly double the loss from the prior year.