Oscar Health has released its financial outcomes for the second quarter, indicating a period of significant transition and strategic realignment. The company recorded revenues of approximately $2.86 billion, which, while an increase from the previous year's $2.2 billion, did not meet the anticipated $2.91 billion. This shortfall, alongside a reported loss of 89 cents per share against an 86-cent consensus estimate, highlights current challenges. Contributing factors to these financial results include a rise in membership, which paradoxically was somewhat offset by an increase in net risk adjustment transfer accrual, leading to a higher medical loss ratio of 91.1% compared to 79.0% in the prior year.
Amidst these financial figures, Oscar Health's leadership remains focused on future growth and stability. CEO Mark Bertolini articulated a vision for navigating the current market dynamics, asserting the company's strong position to manage the industry's shift expected in 2025. He anticipates a stabilization of the market in the coming year, paving the way for the company to achieve profitability by 2026. Despite an operating loss of $230.5 million and a net loss of $228.36 million in the second quarter, Oscar Health has reaffirmed its fiscal 2025 sales guidance, projecting between $12 billion and $12.2 billion, which surpasses current Wall Street estimates.
Looking ahead, Oscar Health is taking proactive measures to adapt to the competitive individual healthcare market. The company is implementing pricing adjustments for 2026 to account for the increased acuity within this sector. Management expects a medical loss ratio of 86%-87% and an SG&A expense ratio of 17.1%-17.6% for fiscal 2025, alongside an adjusted EBITDA loss of approximately $120 million. These strategic moves underscore Oscar Health's commitment to ensuring high-quality, affordable coverage for its growing membership, aiming for long-term success and financial health in a dynamic healthcare environment.
The journey of Oscar Health through its financial rebalancing acts as a testament to resilience and foresight within the complex healthcare sector. It illustrates that even in the face of immediate financial hurdles, a clear strategic direction and adaptive measures can chart a course towards future prosperity and positive impact. The company's commitment to innovation and member value reflects a broader aspiration to enhance healthcare accessibility and quality, ultimately contributing to a healthier and more secure society.