Oscar Health, Inc. ( (OSCR) ) has released its Q4 earnings. Here is a breakdown of the information Oscar Health, Inc. presented to its investors.
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Oscar Health, Inc. is a healthcare technology company that provides Individual & Family plans and health technology solutions, aiming to make healthcare more accessible and affordable through its innovative platform. In its latest earnings report, Oscar Health announced significant financial improvements for the full year 2024, marking a historic milestone with positive adjusted EBITDA and net income profitability for the first time. The company reported a 56.5% increase in total revenue, reaching $9.2 billion, alongside a notable reduction in its SG&A Expense Ratio by 520 basis points to 19.1%. These results were primarily attributed to strong membership growth and improved cost efficiencies.
The company’s net income attributed to Oscar Health was $25.4 million, or $0.10 per diluted share, reflecting an improvement of $296.2 million from the previous year, while adjusted EBITDA improved by $244.5 million to reach $199.2 million. The Medical Loss Ratio for the year slightly increased to 81.7%, influenced by membership expansion and adjustments in risk transfer. Oscar Health’s strategic performance is further emphasized by its membership growth, particularly in the Individual and Small Group segments, which climbed to approximately 1.68 million members by the end of 2024.
Looking forward, Oscar Health anticipates continued growth in 2025 with projected total revenue between $11.2 billion and $11.3 billion. The company expects its Medical Loss Ratio to stabilize between 80.7% and 81.7%, and aims to lower its SG&A Expense Ratio to a range of 17.6% to 18.1%. Additionally, Oscar Health introduced a new metric, Earnings from Operations, with expectations to achieve between $225 million and $275 million in 2025.
Oscar Health’s management remains optimistic about future performance, supported by strategic leadership changes, including the appointment of Janet Liang as President of Oscar Health Insurance. With a focus on operational expertise and market growth, the company aims to sustain its momentum and continue delivering profitable growth in the healthcare industry.
