Q2 2026 Oscar Health Inc Earnings Call Transcript
Key Points
- Oscar Health Inc (OSCR) delivered record profitability in the first half of 2026, with $1.1 billion in earnings from operations and $1 billion in net income.
- Second-quarter revenue grew 70% year-over-year to $4.9 billion, driven by a 46% increase in membership to 2.96 million.
- The medical loss ratio (MLR) improved by 12 points year-over-year to 79.2%, reflecting disciplined pricing and favorable utilization trends.
- The SG&A expense ratio hit a record low of 14.2%, a 450 basis point improvement, driven by AI-driven efficiencies and operating leverage.
- The company raised its full-year 2026 earnings from operations guidance to $500-$700 million, a $250 million increase, citing strong performance and favorable market morbidity trends.
- Oscar Health Inc (OSCR) is expanding its ICHRA platform (ICHRA-X), which includes all competitors, to capture the growing defined contribution market and potentially lower employer costs by up to 26%.
- Outpatient utilization was elevated in the first half of 2026, although management noted the trends were stable and not outsized.
- The company expects increasing membership churn in the back half of 2026 due to CMS program integrity efforts, with churn potentially reaching twice the previously expected 1%-2% monthly rate.
- Oscar Health Inc (OSCR) remains cautious about the 2026 risk adjustment data, recognizing only a small portion of the favorability from the first Wakely report due to the early stage of claims data.
- The company anticipates higher SG&A ratio in the fourth quarter due to investments in future growth and preparation for 2027 enrollment.
- There is uncertainty regarding the 2027 rate environment, with potential impacts from the MBPP (Marketplace Benchmark Premium Program) and ongoing CMS program integrity efforts, although management views the market as rational so far.
- The company faces potential financial impacts from CMS's list of potentially unauthorized members, though it has baked these assumptions into its guidance and is actively reviewing the files.
Good morning. My name is Janie and I will be your conference operator today. At this time, I would like to welcome everyone to Oscar Health's second-quarter 2026 earnings conference call.
(Operator Instructions) Thank you. Now, let's now turn the call over to Chris Potochar, Vice President of Treasury and Investor Relations.
Good morning, everyone. Thank you for joining us for our second quarter 2026 earnings call. Mark Bertolini, Oscar Health's Chief Executive Officer and
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