Oscar Health (OSCR) Q4 2024 earnings summary

Executive summary

• Achieved first-ever full-year net income and Adjusted EBITDA profitability in 2024, driven by record-high membership, product innovation, and operational efficiency.

• Total revenue grew 57% year-over-year to $9.2 billion, with net income of $25.4 million, a $296.2 million improvement over the prior year.

• Membership reached 1.8 million as of February 1, 2025, outpacing the market at 37% growth versus the market's 13%.

• Announced appointment of Janet Liang as President, Oscar Health Insurance, effective February 24, 2025.

• AI and technology initiatives drove operational efficiency, member engagement, and cost reductions.

Financial highlights

• Adjusted EBITDA for 2024 was $199.2 million, a $244.5 million year-over-year improvement.

• Net income reached $25.4 million, marking the first year of profitability.

• Full-year 2024 total revenue: $9.18 billion, up from $5.86 billion in 2023.

• Full-year medical loss ratio (MLR) was 81.7%, up 10 basis points year-over-year; SG&A ratio improved by 520 basis points to 19.1%.

• Fourth-quarter revenue increased 67% year-over-year to $2.4 billion.

Outlook and guidance

• 2025 revenue guidance is $11.2–$11.3 billion, reflecting above-market growth and strong retention.

• 2025 MLR expected at 80.7%–81.7%, a 50 basis point improvement at the midpoint.

• SG&A expense ratio guidance for 2025 is 17.6%–18.1%, a 125 basis point improvement at the midpoint.

• Earnings from operations projected at $225–$275 million, with Adjusted EBITDA about $140 million higher.

• Positive net income expected in 2025.