Oscar Health reported strong second-quarter results, swinging to a profit of $362 million compared to a loss of $228.4 million a year ago.
The company saw "record profitability" in the first half of 2026 seeing, according to CEO Mark Bertolini during Oscar Health's second-quarter earnings call Thursday.
Bertolini told investors the company generated $1.1 billion in earnings from operations and $1 billion in net income for the first six months of 2026.
Oscar Health brought in $4.9 billion in Q2 revenue, up 70% year-over-year, Bertolini said. While the company beat earnings estimates, it missed revenue estimates by 0.92%, per Zacks Investment Research. Its medical loss ratio was 79.2%, down from 91.1% year-over-year, according to financial results published Thursday morning.
“Our performance demonstrates superior execution against the fundamentals of our strategy: disciplined pricing, differentiated consumer products, and a scalable technology platform work together to fuel individual market growth,” Bertolini said.
The company ended Q2 with 2.96 million members, which Bertolini said is up 46% year-over-year and reflects “above-market open enrollment growth and solid retention.”
“Our consumer products, designed around clinical, lifestyle, and cultural needs are driving higher member satisfaction, and we continue to launch features that help members find high-value care and manage costs,” Bertolini said. “We are also building momentum in ICRA with steady growth and demand for small businesses in the healthcare and professional services industries.”
Chief Financial Officer Scott Blackley said the company is raising its full-year earnings outlook to $500 million to $700 million, up $250 million from previous guidance. “We continue to expect total revenues of $18.7 billion to $19 billion,” Blackley said.
Moreover, according to Blackley, Oscar Health is now expecting full-year MLR to be “in the range of 81.5% to 82.5%,” what he says is “an improvement of 90 basis points at the midpoint from our prior outlook.”
“Our improved outlook reflects our strong current staff performance, including favorable prior period development, market morbidity trends, and an expectation of increasing membership churn in the back half of the year as CMS program integrity processes continue,” Blackley said.
Despite the strong results, Oscar Health shares fell 13% Thursday. Blackley noted that the company expects increasing membership churn in the back half of the year as CMS program integrity processes continue. The Affordable Care Act marketplace membership churn rate will likely be higher in the second half of the year as CMS continues eligibility verification and program integrity reviews, management noted.
In response to an investor question about the churn rate, Blackley said, "We ended the second quarter with 2.96 million effectuated members, which is basically flat in the second quarter. What we saw in that quarter basically was significantly better than our expectations. So the lapse was quite favorable. Some of the lapse that we expected in the quarter is related to CMS eligibility and data issues that we now expect to happen in the second half of the year. So I would expect that churn, we previously thought it was 1% to 2%. It's probably going to be closer to twice that amount," he said.
He added, "I would characterize that again more as just a delay in those members being unenrolled versus anything more fundamental in terms of the ongoing churn that we would expect in the business."