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

Are you keeping a close watch on the financial health of Oscar Health, Inc. (OSCR)? As investors, understanding the key financial metrics is crucial for making informed decisions. Did you know that Oscar Health reported a groundbreaking year in 2024? The company achieved its first profitable year ever, with a net income of $25.4 million, a significant turnaround from a loss of over $270 million in 2023. Total revenue soared to $9.2 billion, marking a 56.5% increase year-over-year. With membership reaching an all-time high of nearly 1.7 million, how sustainable is this growth, and what does it mean for future profitability?

Oscar Health, Inc. (OSCR) Revenue Analysis

Understanding Oscar Health, Inc.'s revenue streams involves analyzing its primary sources, growth rates, segment contributions, and any notable shifts. This provides investors with a clear picture of the company’s financial health and operational performance. Here's an analysis based on the latest available information:

Oscar Health, Inc. primarily generates revenue through premiums from its health insurance plans. These plans cater to individuals, families, and small businesses, with a focus on leveraging technology and data to improve the healthcare experience. More information about Oscar Health's goals can be found at Mission Statement, Vision, & Core Values of Oscar Health, Inc. (OSCR).

In the fiscal year 2024, Oscar Health reported significant revenue growth. Here’s a detailed breakdown:

• Direct and Assumed Policy Premiums: For the year ended December 31, 2024, Oscar Health reported $6.77 billion in direct and assumed policy premiums, compared to $5.45 billion for the year ended December 31, 2023.
• Premiums Ceded: Premiums ceded were $3.14 billion for the year ended December 31, 2024, compared to $2.44 billion for the year ended December 31, 2023.
• Net Premiums Revenue: Net premiums revenue was $3.63 billion for the year ended December 31, 2024, compared to $3.01 billion for the year ended December 31, 2023.

The year-over-year revenue growth rate shows a positive trend. The net premiums revenue increased from $3.01 billion in 2023 to $3.63 billion in 2024, representing a growth rate of approximately 20.6%. This growth indicates strong market demand and effective business strategies.

Here's a summary of Oscar Health's revenue streams and growth:

Oscar Health operates primarily in the health insurance sector, with its main business segment being the provision of health plans. These plans are offered to individuals, families, and small businesses across various states. The company focuses on leveraging technology and data analytics to provide personalized and efficient healthcare services. There have been no significant changes in the company’s core revenue streams, with premiums remaining the dominant source of income.

Oscar Health, Inc. (OSCR) Profitability Metrics

Analyzing Oscar Health, Inc. (OSCR)'s profitability involves examining its gross profit, operating profit, and net profit margins to understand its financial performance. Trends in these metrics over time provide insights into the company's efficiency and ability to generate profits.

As of the fiscal year 2024, Oscar Health, Inc. (OSCR) has made notable strides in improving its financial standing. While specific figures fluctuate and are subject to final audits, the general trend indicates a move towards enhanced profitability.

Here's a breakdown:

• Gross Profit: Oscar Health has seen improvements in its gross profit, driven by better management of medical costs and increased efficiency in operations.
• Operating Profit: The operating profit is still negative, but the losses have been reduced year-over-year, reflecting better cost control and operational efficiencies.
• Net Profit Margins: Net losses have also decreased, indicating a positive trajectory toward eventual profitability.

To provide a clearer picture, consider the following hypothetical (but structurally indicative) data based on trends and available information for the fiscal year 2024:

These figures are directional and based on the understanding that Oscar Health is actively working to reduce its losses and improve efficiency. For exact figures, refer to their official financial statements.

A comparison of profitability ratios with industry averages is crucial. The health insurance industry is competitive, and Oscar Health's ability to match or exceed industry benchmarks will be a key indicator of its long-term success. This involves analyzing how well Oscar Health manages its costs relative to its revenue and how efficiently it operates compared to its peers.

Analysis of operational efficiency includes:

• Cost Management: Efficiently controlling administrative and medical costs is vital for improving profitability.
• Gross Margin Trends: Monitoring gross margin trends helps evaluate the effectiveness of pricing strategies and cost containment measures.

For further insights, you can explore: Breaking Down Oscar Health, Inc. (OSCR) Financial Health: Key Insights for Investors

Oscar Health, Inc. (OSCR) Debt vs. Equity Structure

Understanding how Oscar Health, Inc. (OSCR) finances its operations and growth is crucial for investors. This involves analyzing its debt levels, debt-to-equity ratio, and overall approach to balancing debt and equity financing. For more insights, check out: Breaking Down Oscar Health, Inc. (OSCR) Financial Health: Key Insights for Investors.

As of the end of fiscal year 2024, a key aspect of Oscar Health's financial structure is understanding its debt profile. This includes both short-term and long-term obligations that the company uses to fund its operations and investments. Analyzing these figures provides insight into the company's financial leverage and risk.

Here's a breakdown of key elements related to Oscar Health's debt and equity:

• Overview of Debt Levels: Reviewing Oscar Health’s latest financial statements to determine the outstanding amounts of both short-term and long-term debt is essential. Short-term debt includes obligations due within a year, while long-term debt covers liabilities extending beyond a year.
• Debt-to-Equity Ratio: The debt-to-equity ratio is a critical metric for assessing a company's financial leverage. It is calculated by dividing total liabilities by total shareholders' equity.
  • A higher ratio indicates that the company relies more on debt financing, which can increase financial risk.
  • A lower ratio suggests a more conservative approach, with a greater reliance on equity.
• Recent Debt Activity: Monitoring any recent debt issuances, credit ratings, or refinancing activities provides insights into how Oscar Health manages its debt obligations.
• Balancing Debt and Equity: Oscar Health strategically balances debt and equity to optimize its capital structure. This involves assessing the costs and benefits of each financing method to achieve sustainable growth and financial stability.

While specific figures for 2024 are not available, information from earlier periods can provide context. For instance, it's important to note trends in debt levels and how they correlate with the company's growth initiatives. Information on credit ratings, if available, can offer an external assessment of Oscar Health's creditworthiness.

The debt-to-equity ratio is a vital sign of Oscar Health's financial health. While the precise ratio for 2024 is not available, keeping an eye on this metric in future reports will help evaluate the company's risk profile in comparison to industry averages. Comparing Oscar Health's debt-to-equity ratio with those of its competitors can provide valuable insights into its relative financial risk. Industry standards vary, but a significantly higher ratio might indicate greater financial vulnerability.

Oscar Health's approach to financing, whether leaning towards debt or equity, reflects its strategic priorities. Actively managing this balance is key to supporting growth while maintaining financial health. Any refinancing activities or credit rating adjustments should be closely monitored, as they can provide early signals of changes in the company's financial strategy and stability.

Oscar Health, Inc. (OSCR) Liquidity and Solvency

Analyzing Oscar Health, Inc.'s liquidity involves examining key financial ratios and cash flow trends to understand its ability to meet short-term obligations. Here's an overview:

Liquidity Ratios:

• Current Ratio: The current ratio is calculated by dividing current assets by current liabilities.
• Quick Ratio: The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets.

Working Capital Trends:

Working capital, the difference between a company's current assets and current liabilities, is a measure of its short-term financial health. Monitoring the trend of working capital can indicate whether the company's ability to meet its short-term obligations is improving or deteriorating. For Oscar Health, analyzing changes in accounts receivable, accounts payable, and inventory levels (if applicable) provides insights into its operational efficiency and liquidity management.

Cash Flow Statements Overview:

Cash flow statements provide a picture of how Oscar Health, Inc. (OSCR) generates and uses cash. They are divided into three main categories:

• Operating Activities: This section shows the cash generated or used from the company's core business operations.
• Investing Activities: This includes cash flow from the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: This section reports cash flow from debt, equity, and dividends.

Here is a closer look at Oscar Health, Inc.'s cash flow data from the fiscal year 2024:

Potential Liquidity Concerns or Strengths:

Based on available data, here's an assessment of Oscar Health, Inc.'s liquidity:

• Strengths: A positive net increase in cash, cash equivalents, and restricted cash indicates improved liquidity.
• Concerns: Negative cash flow from operating activities could signal potential issues with generating cash from its core business.

For further insights into Oscar Health, Inc. (OSCR) and its investors, check out: Exploring Oscar Health, Inc. (OSCR) Investor Profile: Who’s Buying and Why?

Oscar Health, Inc. (OSCR) Valuation Analysis

Determining whether a company is overvalued or undervalued requires a multifaceted approach, incorporating various financial ratios, stock performance analysis, and analyst insights. For Oscar Health, Inc. (OSCR), several key metrics offer a glimpse into its valuation. Also, take a look at Exploring Oscar Health, Inc. (OSCR) Investor Profile: Who’s Buying and Why?.

Here's a breakdown of the valuation analysis for Oscar Health, Inc. (OSCR):

Key Valuation Ratios

These ratios provide a snapshot of how the market values Oscar Health's stock relative to its earnings, book value, and operational performance.

• Price-to-Earnings (P/E) Ratio: As of April 2025, the P/E ratio for Oscar Health varies across different sources. One source indicates a trailing P/E ratio of 113.30 and a forward P/E ratio of 15.56, while another source states the P/E ratio is -5.44. A more recent figure from April 15, 2025, shows a P/E ratio of -792.99. These conflicting figures suggest volatility and the potential for varied interpretations of Oscar Health's earnings.
• Price-to-Book (P/B) Ratio: The Price-to-Book (P/B) Ratio is around 3.04 as of April 2025. Another source indicates a P/B ratio of 3.07 as of March 28, 2025, representing a -21.09% change year-over-year.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: As of April 2025, Oscar Health's EV/EBITDA ratio is reported as 20.77. However, another source shows that as of April 8, 2025, the EV/EBITDA ratio is negative. The average EV/EBITDA ratio for the past 12 months is 99.70.

Stock Price Trends

Analyzing stock price movements over time can reveal investor sentiment and market dynamics.

• 52-Week Range: The 52-week range is between $12.43 and $23.79.
• 52-Week Price Change: The stock price has decreased by approximately -29.23% in the last 52 weeks. Another source states a -19.98% decrease.

Additional Valuation Insights

Here's a summary of additional data points to consider:

• Revenue: For the fiscal year 2023, Oscar Health reported revenue of $1.88 billion, a 15.4% increase from the previous year.
• Gross Margin: Oscar Health's gross margin is 10.4%.
• Operating Expenses: The company's operating expenses are $480.5 million.
• Market Capitalization: As of February 14, 2025, Oscar Health has a market capitalization of $3.37 billion.
• Cash Position: The company holds a substantial cash position of $2.15 billion.

Analyst Consensus

Analysts' ratings and price targets offer external validation of the stock's potential.

• Consensus Rating: Oscar Health has a consensus rating of 'Hold.'
• Analysts providing ratings include: 2 with a sell rating, 3 with a hold rating, 2 with a buy rating, and 1 with a strong buy rating.
• Average Price Target: The average 12-month price target is $16.90.

Oscar Health, Inc. (OSCR) Risk Factors

Several factors, both internal and external, can significantly impact the financial health of Oscar Health, Inc. (OSCR). These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges detailed in their financial reports. Understanding these risks is crucial for investors.

Here are some key risks that Oscar Health, Inc. (OSCR) faces:

• Industry Competition: The health insurance industry is highly competitive. Oscar Health faces competition from established national players, regional health plans, and new market entrants, all vying for market share. Increased competition could lead to pressure on premiums and reduced profitability.
• Regulatory Changes: The healthcare industry is heavily regulated, and changes in regulations can significantly impact Oscar Health's business model. This includes changes to the Affordable Care Act (ACA), Medicare, Medicaid, and other healthcare laws and regulations at the federal and state levels. Compliance with these regulations requires ongoing investment and can impact operational costs.
• Market Conditions: Economic downturns can affect enrollment rates as individuals may lose employer-sponsored insurance or reduce healthcare spending. Changes in demographics and healthcare utilization patterns can also impact the company's financial performance.
• Operational Risks: As a health insurer, Oscar Health faces risks related to managing medical costs, accurately predicting healthcare utilization, and effectively negotiating contracts with healthcare providers. Failure to manage these operational aspects can lead to higher-than-expected claims expenses and reduced profitability.
• Financial Risks: Oscar Health needs to maintain adequate capital reserves to meet regulatory requirements and cover potential claims. The company's ability to raise capital in the future depends on market conditions and investor confidence.
• Strategic Risks: Oscar Health's success depends on its ability to innovate and differentiate itself from competitors. This includes developing new products and services, leveraging technology to improve the member experience, and expanding into new markets. Failure to execute its strategic initiatives can impact its long-term growth prospects.

Mitigation strategies and plans are crucial for addressing these risks. While specific details may vary and can be found in Oscar Health's filings, common strategies include:

• Diversification: Expanding into new geographic markets and product lines to reduce reliance on any single market or product.
• Cost Management: Implementing programs to control medical costs and improve operational efficiency.
• Technology Investments: Investing in technology to improve the member experience, streamline operations, and gain a competitive advantage.
• Regulatory Compliance: Maintaining a robust compliance program to ensure adherence to all applicable laws and regulations.
• Capital Management: Maintaining adequate capital reserves and exploring financing options to support growth and manage risk.

Earnings reports and filings provide detailed information on these risks and the company's strategies for managing them. Investors should carefully review these documents to gain a comprehensive understanding of Oscar Health's risk profile.

For further insights into investor behavior and market dynamics surrounding Oscar Health, explore: Exploring Oscar Health, Inc. (OSCR) Investor Profile: Who’s Buying and Why?

Oscar Health, Inc. (OSCR) Growth Opportunities

Oscar Health, Inc. faces several key growth drivers that could shape its future trajectory. These include strategic product innovations, potential market expansions, calculated acquisitions, and advantageous partnerships.

Product innovation remains central to Oscar Health's growth strategy. The company focuses on:

• Technological advancements: Investing in platforms that enhance user experience and streamline healthcare processes.
• Personalized healthcare solutions: Tailoring services to meet individual member needs, potentially improving retention and attracting new customers.

Market expansion represents another avenue for growth. This can be achieved through:

• Geographic diversification: Entering new markets to increase membership base.
• Targeted marketing: Focusing on specific demographics or healthcare needs within existing and new markets.

Acquisitions and partnerships could provide Oscar Health with:

• Access to new technologies: Integrating innovative solutions to enhance service offerings.
• Expanded market reach: Leveraging partners' existing networks to penetrate new areas.

Predicting future revenue growth and earnings requires analyzing various factors. For the fiscal year 2024, analysts estimated revenues of $6.65 Billion, which represents a 22.95% increase. Earnings estimates for the same period are projected at $-2.68 per share.

Several strategic initiatives and partnerships are expected to be pivotal in driving Oscar Health's future growth:

• Partnerships with healthcare providers: Enhancing the quality and accessibility of care for members.
• Investment in technology infrastructure: Supporting scalability and improved operational efficiency.

Oscar Health possesses several competitive advantages that could position it favorably for future growth:

• Technology-driven platform: Offering a user-friendly experience and data-driven insights.
• Focus on member engagement: Creating a personalized and supportive healthcare journey.

Here’s a look at Oscar Health's historical financial performance:

For further insights into Oscar Health's investor profile, consider exploring this resource: Exploring Oscar Health, Inc. (OSCR) Investor Profile: Who’s Buying and Why?