Oscar Health (OSCR) Q2 2024 earnings summary

Executive summary

• Reported strong Q2 2024 results with total revenue of $2.22 billion, a 46% year-over-year increase, and net income of $56.2 million, reversing a prior year loss.

• Membership reached approximately 1.58 million as of June 30, 2024, up 63% year-over-year, primarily from individual market growth and SEP additions.

• Adjusted EBITDA for Q2 was $104.1 million, a significant year-over-year improvement.

• Raised full-year 2024 revenue guidance by $700 million to $9.0–$9.1 billion and adjusted EBITDA guidance to $160–$210 million.

• Announced exit from the small group market and non-renewal of the Cigna + Oscar partnership effective December 2024.

Financial highlights

• Q2 2024 total revenue was $2.22 billion, a 46% increase year-over-year, with premium revenue up 47% to $2.16 billion.

• Net income for Q2 2024 was $56.2 million, or $0.20 per diluted share, a $71.7 million improvement year-over-year.

• Adjusted EBITDA for Q2 was $104.1 million, up from $35.6 million in Q2 2023.

• Medical Loss Ratio (MLR) improved by 90 basis points year-over-year to 79.0%.

• SG&A expense ratio improved to 19.6%, down from 22.2% year-over-year.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $9.0–$9.1 billion, reflecting higher membership from SEP additions.

• Adjusted EBITDA guidance increased to $160–$210 million.

• Expected full-year MLR in the range of 80.5%–81.5%, primarily due to SEP member risk adjustment dynamics.

• SG&A expense ratio expected to be 19.75%–20.25%, reflecting cost efficiencies.

• Company believes current liquidity and capital resources are sufficient to fund operations for at least the next twelve months.