Overview
- Oscar reported on Thursday that it posted a $361.8 million profit in the second quarter and over $1 billion in net income for the first half of 2026.
- Revenue rose about 70% to roughly $4.9 billion while membership expanded to about 2.9–2.96 million members, driven by growth in the ACA individual market.
- The medical loss ratio fell to 79.2% from 91.1% a year earlier, which means Oscar spent a smaller share of premiums on medical care and attributed the drop to disciplined pricing and $164 million of favorable prior‑period reserve development.
- The company raised 2026 operating income guidance to $500 million–$700 million and narrowed its expected full‑year MLR, but the stock fell roughly 9–10% as analysts flagged possible membership churn and questions about the durability of reserve and pricing gains.
- Oscar’s gains come as rivals such as Aetna have left the individual market and Cigna plans to exit in 2027, a shift that can widen Oscar’s growth runway while concentrating choices for consumers and increasing the company’s reliance on the ACA individual market.