Oscar Health’s second quarter was marked by robust top-line growth, but the company missed Wall Street’s revenue and non-GAAP EPS estimates. Despite the shortfall, management pointed to a 29% increase in membership and cited solid retention and above-market gains during open enrollment as key drivers. CEO Mark Bertolini highlighted that higher average market morbidity—reflecting sicker members joining the insurance pool—drove up medical costs, while Oscar’s expense management and technology-driven efficiencies helped partially offset these pressures. Bertolini stated, “We are focused on what we can control,” referencing both rate actions and administrative cost reductions undertaken in the quarter.

Is now the time to buy OSCR? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Oscar Health’s Q2 Earnings Call

• Joshua Richard Raskin (Nephron Research) asked about the expected trajectory of free cash flow and risk adjustment payables. CFO Scott Blackley explained that losses would be absorbed by excess capital and detailed parent cash expectations for the remainder of 2025.
• Hua Ha (Baird) pressed on the sustainability of multi-year earnings levers amid volatility in the risk pool. CEO Mark Bertolini responded that Oscar is accelerating efforts in medical cost control and AI-driven efficiencies to support future profit targets.
• Jessica Elizabeth Tassan (Piper Sandler) questioned assumptions behind market stabilization and profitability in 2026. Blackley said pricing actions and conservative assumptions for program integrity should allow for margin recovery, while emphasizing Oscar’s strong capital position.
• Craig Jones (Bank of America) inquired about the company’s rate positioning relative to peers for 2026. Blackley confirmed Oscar is pursuing significant double-digit rate increases, aiming for competitiveness while covering morbidity and subsidy changes.
• David Howard Windley (Jefferies) asked about membership growth sources and risk profiles. Blackley stated growth was driven by both new and retained members, with no material deterioration in risk profile compared to prior years.

Catalysts in Upcoming Quarters

In coming quarters, we will closely track (1) the effectiveness of repricing efforts and regulatory approvals on rate filings, (2) the realization of planned administrative cost savings from headcount and vendor reductions, and (3) early traction in Oscar’s expanded ICHRA and digital marketplace initiatives. Additionally, monitoring shifts in market morbidity and competitive rate actions will remain key to assessing the company’s margin outlook.

Oscar Health currently trades at $14.96, up from $13.82 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).

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