NEW YORK - Oscar Health , Inc. (NYSE:OSCR) reported fourth-quarter earnings and revenue that fell short of analyst expectations, while also providing disappointing guidance for 2025. The healthcare technology company's shares plunged 15% following the announcement.
For the fourth quarter, Oscar Health reported an adjusted loss per share of -$0.62, missing the analyst consensus estimate of -$0.60 by $0.02. Revenue for the quarter came in at $2.39 billion, below the $2.46 billion analysts had expected.
The company's Medical (TASE:PMCN) Loss Ratio for Q4 increased to 88.1% from 86.4% in the same quarter last year, indicating higher medical costs relative to premiums. However, the SG&A Expense Ratio improved to 19.5% from 25.4% YoY, reflecting better cost management.
Looking ahead, Oscar Health provided guidance for fiscal year 2025, projecting revenue between $11.2 billion and $11.3 billion. This outlook falls short of the $11.69 billion consensus estimate analysts had forecasted.
Despite the disappointing quarterly results and guidance, CEO Mark Bertolini highlighted the company's achievements for the full year 2024, stating, "Oscar reported positive full year 2024 results, capping the strongest year of financial performance in Company history. We reported both Adjusted EBITDA and net income profitability – two significant milestones."
For the full year 2024, Oscar Health reported total revenue of $9.2 billion, a 56.5% increase YoY. The company also achieved net income profitability for the first time, reporting $25.4 million in net income attributable to Oscar, or $0.10 per diluted share.
The company's membership grew significantly, reaching 1,676,970 members as of December 31, 2024, compared to 1,036,283 members at the end of 2023.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.