Oscar Health, Inc.

Second-quarter revenue was $4.9 billion, up 70% year over year. Earnings from operations were $389 million, up $619 million year over year, net income was $362 million, and adjusted EBITDA was $415 million. MLR was 79.2%, an improvement of nearly 12 points year over year, and SG&A expense ratio was 14.2%, down 450 basis points year over year. Oscar ended Q2 with 2.96 million effectuated members, up 46% year over year. For the first half of 2026, management said the company generated about $1 billion of net income, or $3.16 per diluted share, and record profitability with $1.1 billion in earnings from operations. Full-year 2026 guidance was raised to earnings from operations of $500 million to $700 million; revenue remains expected at $18.7 billion to $19 billion; MLR is now expected at 81.5% to 82.5%; SG&A expense ratio at 15.6% to 16.1%; and adjusted EBITDA is expected to run roughly $115 million above earnings from operations.

Mark Bertolini framed the quarter as evidence that Oscar's strategy is working: disciplined pricing, differentiated consumer products, and a scalable technology platform. He emphasized that AI is being embedded across the business to reduce friction, improve care navigation, and create operating leverage without needing to add headcount at the same pace as membership growth. His tone was confident and constructive, repeatedly saying the company is entering the back half of the year from a position of strength and has raised 2026 outlook accordingly.

Scott Blackley highlighted strong profitability and balance-sheet strength, noting approximately $10.2 billion of cash and investments, including $462 million at the parent, and about $1.9 billion of capital and surplus in the insurance subsidiaries, including $994 million of excess capital. He pointed to $160 million of favorable final 2025 CMS risk adjustment versus first-quarter accruals, total favorable prior-period development of $232 million through six months, and risk adjustment at about 20% of direct premiums for the first half, which is consistent with full-year expectations. He also said SG&A trends look stable for the year, with Q4 typically the highest SG&A ratio due to investment spending ahead of 2027 enrollment, and that the company raised operating income guidance by $250 million to reflect first-half performance, favorable morbidity, and expected second-half churn tied to CMS program integrity efforts.

Analysts pressed on outpatient utilization, the apparent strength of underlying MLR after removing prior-period items, and how much confidence management has in the updated guide. Management said outpatient was elevated in only a handful of areas, overall utilization trends were stable, and first-half visibility gives them confidence in the current book; they also said the first-half risk adjustment picture and favorable morbidity support the outlook, but they have not fully recognized all of that favorability yet. Questions also focused on 2027 rates, ACA enrollment, ICHRA, SG&A leverage, and CMS eligibility verification; management said pricing remains rational, they see opportunity in ICHRAx and product innovation, SG&A leverage may improve further, and the expected second-half disenrollments tied to CMS processes are already baked into guidance.