Oscar Health beats Q3 revenue estimates, raises 2026 outlook
Overview
US health insurer's Q3 revenue rose about 72%, beating analyst expectations
Company reported positive adjusted EBITDA compared to a loss a year ago
Company raised full-year 2026 revenue and earnings from operations outlook
Outlook
Oscar Health raises 2026 revenue outlook to $19.0 bln-$19.3 bln from $18.7 bln-$19.0 bln
Company now sees 2026 earnings from operations of $850 mln-$950 mln, up from $600 mln-$800 mln
Oscar Health expects 2026 medical loss ratio of 80.5%-81.5% versus prior 81.0%-82.0%
Result Drivers
RATE INCREASES AND MEMBERSHIP GROWTH - Co said Q3 revenue rose due to higher premium rates and increased membership
DISCIPLINED PRICING - Co attributed lower medical loss ratio to disciplined pricing strategy
EXPENSE MANAGEMENT - Co said lower SG&A expense ratio was due to greater fixed cost leverage and disciplined expense management
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $5.14 bln | $4.72 bln (10 Analysts) |
Q3 Net Income | $167.28 mln | ||
Q3 Adjusted EBITDA | $206.85 mln | ||
Q3 Operating Expenses | $4.96 bln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the life & health insurance peer group is "buy."
Wall Street's median 12-month price target for Oscar Health, Inc. is $34.00, about 3.4% above its November 4 closing price of $35.19
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 24 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)