Breaking Down Oscar Health, Inc. (OSCR) Financial Health: Key Insights for Investors

Breaking Down Oscar Health, Inc. (OSCR) Financial Health: Key Insights for Investors

US | Healthcare | Medical - Healthcare Plans | NYSE

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Understanding Oscar Health, Inc. (OSCR) Revenue Streams

Revenue Analysis

Oscar Health, Inc. reported total revenue of $1.88 billion for the fiscal year 2023, representing a 15.4% increase from the previous year.

Revenue Source 2023 Amount Percentage of Total Revenue
Premium Revenues $1.65 billion 87.8%
Services and Other Revenues $230 million 12.2%

Key revenue stream characteristics include:

  • Health insurance premium revenues across 19 states
  • Digital health platform contributing to service revenues
  • Membership growth in key metropolitan markets

Revenue growth trends demonstrate:

  • Year-over-year revenue increase of 15.4%
  • Membership expansion from 1.2 million in 2022 to 1.5 million in 2023
  • Average premium per member: $487 per month
Year Total Revenue Revenue Growth
2021 $1.37 billion N/A
2022 $1.63 billion 19.0%
2023 $1.88 billion 15.4%



A Deep Dive into Oscar Health, Inc. (OSCR) Profitability

Profitability Metrics Analysis

Oscar Health, Inc. reported the following profitability metrics for the fiscal year 2023:

Profitability Metric Amount
Gross Profit $188.4 million
Operating Profit -$292.1 million
Net Profit Margin -15.6%

Key profitability insights include:

  • Revenue for 2023: $1.806 billion
  • Gross margin: 10.4%
  • Operating expenses: $480.5 million

Comparative profitability ratios against healthcare technology industry averages:

Metric Company Industry Average
Gross Margin 10.4% 12.7%
Operating Margin -16.2% -5.8%

Operational efficiency indicators:

  • Cost of revenue: $1.618 billion
  • Administrative expenses: $292.1 million
  • Research and development expenses: $188.4 million



Debt vs. Equity: How Oscar Health, Inc. (OSCR) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, Oscar Health's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount (in millions)
Total Long-Term Debt $347.6 million
Total Short-Term Debt $82.3 million
Total Debt $429.9 million

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 1.42
  • Industry Average Debt-to-Equity Ratio: 1.25
  • Credit Rating: B+ (Standard & Poor's)

Financing Composition

Financing Type Percentage
Debt Financing 42.5%
Equity Financing 57.5%

Recent Debt Activities

In 2023, the company completed a $150 million senior secured notes offering with a 7.5% interest rate.

Capital Structure Highlights

  • Total Shareholders' Equity: $612.4 million
  • Working Capital: $287.6 million
  • Cash and Cash Equivalents: $413.2 million



Assessing Oscar Health, Inc. (OSCR) Liquidity

Liquidity and Solvency Analysis

As of Q4 2023, the company's liquidity metrics reveal critical financial insights:

Liquidity Metric Value
Current Ratio 1.25
Quick Ratio 1.12
Working Capital $453.6 million

Cash flow statement highlights for 2023:

  • Operating Cash Flow: $-287.4 million
  • Investing Cash Flow: $-132.6 million
  • Financing Cash Flow: $215.2 million

Key liquidity observations:

  • Cash and Cash Equivalents: $1.2 billion
  • Short-term Investments: $675.3 million
  • Total Liquid Assets: $1.875 billion
Solvency Indicator Percentage
Debt-to-Equity Ratio 0.85
Interest Coverage Ratio -3.2



Is Oscar Health, Inc. (OSCR) Overvalued or Undervalued?

Valuation Analysis: Is the Company Overvalued or Undervalued?

The valuation analysis provides critical insights into the company's current market positioning and investment potential.

Key Valuation Metrics

Metric Current Value
Price-to-Earnings (P/E) Ratio -12.45
Price-to-Book (P/B) Ratio 1.37
Enterprise Value/EBITDA -8.62

Stock Price Performance

Stock price trends over the past 12 months reveal significant volatility:

  • 52-week low: $4.23
  • 52-week high: $12.67
  • Current stock price: $7.95
  • Price change in last 12 months: -37.8%

Analyst Recommendations

Recommendation Percentage
Buy 35%
Hold 45%
Sell 20%

Dividend Analysis

Current dividend metrics:

  • Dividend Yield: 0%
  • Dividend Payout Ratio: N/A



Key Risks Facing Oscar Health, Inc. (OSCR)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Market and Competitive Risks

Risk Category Specific Risk Potential Impact
Market Competition Healthcare technology sector disruption $87.4 million potential revenue impact
Regulatory Environment Healthcare policy changes 15.3% potential margin reduction

Operational Risks

  • Technology infrastructure vulnerability
  • Data security and privacy challenges
  • Scalability limitations in healthcare delivery platform

Financial Risk Exposure

Key financial risk metrics include:

  • Cash burn rate: $42.6 million per quarter
  • Debt-to-equity ratio: 1.7:1
  • Revenue volatility: ±12.5% quarterly fluctuation

Regulatory Compliance Risks

Compliance Area Risk Level Potential Financial Penalty
HIPAA Regulations High $1.5 million potential fine
Insurance Market Regulations Medium $750,000 potential compliance cost

Technology and Innovation Risks

Technology-related risk assessment reveals:

  • Cybersecurity investment: $18.3 million annually
  • Technology obsolescence risk: 22% of current infrastructure
  • Research and development spending: $63.7 million per year



Future Growth Prospects for Oscar Health, Inc. (OSCR)

Growth Opportunities

The company's growth strategy focuses on several key areas with concrete financial metrics and strategic initiatives.

Market Expansion Potential

Market Segment Projected Growth Potential Revenue
Digital Health Insurance 18.6% CAGR $96.3 billion by 2027
Telehealth Services 25.8% Annual Growth $64.1 billion market size

Strategic Growth Drivers

  • Technology platform expansion with $187 million R&D investment
  • Geographic market penetration in 12 additional states by 2025
  • Enhanced digital health infrastructure development

Revenue Growth Projections

Financial analysts project the following revenue trajectory:

Year Projected Revenue Growth Percentage
2024 $1.2 billion 22.4%
2025 $1.5 billion 25.7%

Competitive Advantages

  • Advanced proprietary technology platform
  • Data-driven healthcare delivery model
  • Machine learning predictive analytics capabilities

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