Oscar Health Inc

Oscar Health, Inc. (NYSE: OSCR) is a healthcare technology company built around a full stack technology platform. The Company's offerings include its insurance business and +Oscar Platform. Its health plans are offered in the individual market.

Recent Business and Financial Updates

• Strong Financial Performance: Oscar Health, Inc. (NYSE: OSCR) reported robust financial results for the first quarter of 2025, with total revenue reaching USD3.0 billion, a 42% increase from USD2.1 billion in Q1 2024, driven primarily by a significant rise in membership. Net income attributable to Oscar Health was USD275.3 million, or USD0.92 per diluted share, marking a 55% improvement from USD177.4 million, or USD0.62 per diluted share, in Q1 2024. Adjusted EBITDA rose to USD328.8 million, a 50% increase from USD219.3 million in the prior year, reflecting strong operational performance. The company’s earnings from operations grew to USD297.1 million from USD185.6 million, supported by higher membership, fixed cost leverage, and variable cost efficiencies, positioning Oscar for sustained profitability and reaffirming its full-year 2025 guidance.
• Membership Growth and Market Expansion: Oscar Health achieved significant membership growth, with total effectuated members reaching 2,039,467 as of March 31, 2025, a 41% increase from 1,448,408 in Q1 2024. The Individual and Small Group segment drove this growth, expanding to 2,021,484 members from 1,386,980, while the Cigna+Oscar partnership saw a decline to 17,983 members from 61,428 due to strategic shifts. This membership surge underpins the company’s revenue growth and highlights its ability to capture market share in the competitive health insurance landscape, particularly within the Affordable Care Act (ACA) Marketplace. Oscar’s focus on delivering value to members through technology-driven solutions continues to support its expanding market presence.
• Operational Efficiency and Cost Management: The company improved its Selling, General, and Administrative (SG&A) expense ratio to 15.8% in Q1 2025 from 18.4% in Q1 2024, driven by fixed cost leverage, lower exchange fee rates, and variable cost efficiencies. However, the medical loss ratio (MLR) increased slightly to 75.4% from 74.2%, impacted by a USD31 million unfavorable prior period development, primarily due to an increased 2024 Risk Adjustment payable, partially offset by favorable claims runout and ACA cost-sharing reduction recoveries. These operational efficiencies, combined with disciplined cost management, have enhanced Oscar’s ability to maintain strong margins while scaling operations to meet growing demand.
• Strategic Outlook and Market Positioning: Oscar Health’s strong Q1 2025 performance underscores its leadership in healthcare technology, leveraging innovative platforms to deliver superior value to members and partners. The company’s reaffirmation of its 2025 guidance reflects confidence in sustained margin expansion and operational excellence. Despite challenges such as prior period development impacts, Oscar’s focus on technology-driven healthcare solutions and its ability to achieve significant membership growth position it well for long-term success in the evolving healthcare market. The company’s commitment to enhancing member experience and operational efficiency, supported by a robust financial foundation, makes it a compelling player in the health insurance sector.

Technical Observation (on the daily chart):

The 14-day Relative Strength Index (RSI) is currently at 68.13, corrected from over-bought zone, with the expectations of consolidation or some upward momentum in case the price breaks above important resistance of USD 22.00-USD 23.00. In addition, the current price is above both the 50-day Simple Moving Averages (SMAs) and 200-day SMA, which may work as medium to long term support levels.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given Oscar Health, Inc. (NYSE: OSCR) at the current price of USD20.53, as of June 27, 2025, at 06:40 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is June 27, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.