Oscar Health, Inc.
For the period ended Mar 31, 2026. Filed May 7, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 7, 2026
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Item 2. Results of Operations
Results of Operations
The following table sets forth our results of operations for the periods indicated:
| Three Months Ended March 31, | ||
|---|---|---|
| (in thousands, except percentages) | 2026 | 2025 |
| Revenue | ||
| Premium | $4,580,862 | $2,995,821 |
| Investment income | 60,614 | 46,112 |
| Other revenues | 5,718 | 4,330 |
| Total revenue | 4,647,194 | 3,046,263 |
| Operating Expenses | ||
| Medical | 3,229,857 | 2,259,651 |
| Selling, general, and administrative | 706,234 | 482,759 |
| Depreciation and amortization | 7,018 | 6,730 |
| Total operating expenses | 3,943,109 | 2,749,140 |
| Earnings from operations | 704,085 | 297,123 |
| Interest expense | 5,383 | 5,994 |
| Other expenses (income) | (71) | 2,918 |
| Earnings before income taxes | 698,773 | 288,211 |
| Income tax expense | 19,750 | 12,705 |
| Net income | 679,023 | 275,506 |
| Less: Net income attributable to noncontrolling interests | 27 | 235 |
| Net income attributable to Oscar Health, Inc. | $678,996 | $275,271 |
| MLR | 70.5% | 75.4% |
| SG&A expense ratio | 15.2% | 15.8% |
Premium
Premium revenue increased $1,585.0 million, or 53%, for the three months ended March 31, 2026, compared to the same period in 2025. This increase was driven by higher membership and premium rate increases, partially offset by an increase in the net risk adjustment transfer accrual. As of March 31, 2026, membership increased by 1.1 million, or 56% compared to March 31, 2025, primarily driven by above market growth during the 2026 OEP.
The following table summarizes the Company’s membership by offering:
| As of March 31, | ||
|---|---|---|
| Membership by Offering | 2026 | 2025 |
| Individual and Small Group (1) | 3,174,489 | 2,021,484 |
| Cigna+Oscar (2) | — | 17,983 |
| Total Members (3) | 3,174,489 | 2,039,467 |
| (1) 2025 membership includes small group members. The Company no longer offers small group plans effective December 15, 2024. | ||
| (2) Represents total membership for our former co-branded partnership with Cigna. We did not renew the Cigna+Oscar Small Group arrangement after its initial term ended on December 31, 2024. | ||
| (3) Represents effectuated members. Effectuated members are those who are actively enrolled in one of our plans and whose required premium payments have either been made or are within the payment grace period. A member covered under more than one of our health plans counts as a single member for the purposes of this metric. | ||
Investment Income
Investment income increased $14.5 million, or 31%, for the three months ended March 31, 2026, compared to the same period in 2025, primarily due to higher invested assets, offset by lower yield.
Medical Expenses and MLR
Medical expenses increased $970.2 million, or 43%, for the three months ended March 31, 2026, compared to the same period in 2025. This increase was primarily due to increased membership, partially offset by modestly lower medical cost trend. MLR decreased for the three months ended March 31, 2026, compared to the same period in 2025. The decrease was primarily due to our disciplined pricing strategy, claims and risk adjustment seasonality from metal and new member mix, and favorable prior period reserve development.
| Three Months Ended March 31, | ||
|---|---|---|
| (in thousands, except percentages) | 2026 | 2025 |
| Net claims before ceded quota share reinsurance (A) | $3,229,857 | $2,259,651 |
| Net premiums before ceded quota share reinsurance (B) | $4,580,862 | $2,995,821 |
| Medical Loss Ratio (A divided by B) | 70.5% | 75.4% |
Selling, General, and Administrative Expenses and SG&A Expense Ratio
Selling, general, and administrative expenses increased $223.5 million, or 46%, for the three months ended March 31, 2026, compared to the same period in 2025. This increase was driven by higher membership year over year, resulting in higher volume-driven costs such as taxes and fees and broker commissions. The SG&A expense ratio decreased 60 basis points to 15.2% for the three months ended March 31, 2026, compared to 15.8% for the same period in 2025. The decrease was primarily due to greater fixed cost leverage and disciplined cost management, partially offset by the impact of higher risk adjustment as a percentage of premium.
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