Oscar Health, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 6 May 2026: press release. Guidance figures: 4 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Earnings from operations rose to $704.1 million: Earnings from operations were $704.1 million, against $297.1 million a year earlier. Management attributed the increase to higher membership, rate increases, favorable prior period development, and fixed cost leverage. Source
• Diluted earnings per share reached $2.07: Net income attributable to Oscar Health was $679.0 million, or $2.07 diluted EPS, against $275.3 million, or $0.92, a year earlier. Source
• Individual and Small Group membership rose: Individual and Small Group membership was 3,174,489 at March 31, 2026, against 2,021,484 a year earlier and 2,042,449 at December 31, 2025. Source
• Medical loss ratio improved to 70.5%: Medical loss ratio was 70.5%, against 75.4% a year earlier. Management attributed the decrease to pricing, claims and risk adjustment seasonality, member mix, and prior period reserve development. Source
• Prior period development turned favorable: Prior period development was $68 million favorable in the first quarter of 2026, against $31 million unfavorable a year earlier. Source
• SG&A expense ratio fell to 15.2%: SG&A expense ratio was 15.2%, against 15.8% a year earlier. Management attributed the decrease to fixed cost leverage and cost management, partly offset by higher risk adjustment as a percentage of premium. Source
• Operating cash flow rose to $2.6 billion: Net cash provided by operating activities was $2,618,980 thousand, against $878,542 thousand a year earlier. Source

“Oscar Health drove solid first-quarter performance with significant year-over-year improvements across our core metrics,”

Mark Bertolini, CEO of Oscar Health

Guidance

What changed from last quarter

• Guidance kept: Management reaffirmed the full-year 2026 guidance across all metrics, as given in the February 10, 2026 release. Source

Results and growth drivers

• Earnings from operations rose to $704.1 million: Earnings from operations were $704.1 million, against $297.1 million a year earlier. Management attributed the increase to higher membership, rate increases, favorable prior period development, and fixed cost leverage. Source
• Diluted earnings per share reached $2.07: Net income attributable to Oscar Health was $679.0 million, or $2.07 diluted EPS, against $275.3 million, or $0.92, a year earlier. Source
• Total revenue rose on membership and rates: Total revenue was approximately $4.6 billion, against $3.0 billion a year earlier. Higher membership and rate increases drove the growth, partly offset by a higher net risk adjustment transfer accrual. Source
• Adjusted EBITDA rose to $727.1 million: Adjusted EBITDA was $727.1 million, against $328.8 million a year earlier. Source

Membership and offerings

• Individual and Small Group membership rose: Individual and Small Group membership was 3,174,489 at March 31, 2026, against 2,021,484 a year earlier and 2,042,449 at December 31, 2025. Source
• Small group plans no longer offered: The company has not offered small group plans since December 15, 2024. Membership comparisons for 2025 include small group members. Source
• Former Cigna+Oscar membership not reported: The Cigna+Oscar partnership is no longer active, so no membership is reported for it this quarter. Source

“The workforce is shifting, the individual market is resilient, and Oscar is leading the transition to a consumer-driven health economy.”

Mark Bertolini, CEO of Oscar Health

Medical costs and margins

• Medical loss ratio improved to 70.5%: Medical loss ratio was 70.5%, against 75.4% a year earlier. Management attributed the decrease to pricing, claims and risk adjustment seasonality, member mix, and prior period reserve development. Source
• Prior period development turned favorable: Prior period development was $68 million favorable in the first quarter of 2026, against $31 million unfavorable a year earlier. Source
• Medical expenses rose with membership: Medical expenses were $3,229,857 thousand, against $2,259,651 thousand a year earlier. Source

Operating expenses

• SG&A expense ratio fell to 15.2%: SG&A expense ratio was 15.2%, against 15.8% a year earlier. Management attributed the decrease to fixed cost leverage and cost management, partly offset by higher risk adjustment as a percentage of premium. Source
• Total operating expenses increased: Total operating expenses were $3,943,109 thousand, against $2,749,140 thousand a year earlier. Depreciation and amortization was $7,018 thousand. Source
• Interest expense was lower: Interest expense was $5,383 thousand, against $5,994 thousand a year earlier. Source

Cash and investments

• Operating cash flow rose to $2.6 billion: Net cash provided by operating activities was $2,618,980 thousand, against $878,542 thousand a year earlier. Source
• Cash and short-term investments grew: Cash and cash equivalents were $4,805,139 thousand at March 31, 2026, against $2,774,151 thousand at December 31, 2025. Short-term investments were $1,994,644 thousand. Source
• Investment income rose to $60.6 million: Investment income was $60,614 thousand, against $46,112 thousand a year earlier. Source

Consumer and product positioning

• Consumers expect everyday-product shopping: Management said consumers expect to shop for healthcare like everyday products, on choice, price, and value. Source
• Technology and member experience credited: Management credited its technology, lifestyle products, and member experience for delivering on those consumer expectations. Source
• Company describes itself as technology company: Oscar describes itself as a healthcare technology company built on a full-stack platform, offering Individual & Family plans, ICHRA solutions, and Lucie Health Marketplace. Source

Risk adjustment and CMS balances

• Risk adjustment transfers reduced premium: Risk adjustment transfers deducted $1,442,811 thousand from direct policy premiums, against $373,749 thousand a year earlier. Source
• Payables to CMS rose to $4.7 billion: Payables to CMS were $4,723,244 thousand at March 31, 2026, against $2,730,095 thousand at December 31, 2025. Source
• Receivables from CMS increased: Receivables from CMS were $222,195 thousand, against $136,029 thousand at December 31, 2025. Source

Balance sheet and share count

• Equity rose to $1.67 billion: Total stockholders' equity was $1,667,048 thousand, against $980,735 thousand at December 31, 2025. Source
• Long-term debt was little changed: Long-term debt was $430,876 thousand, against $430,095 thousand at December 31, 2025. Source
• Diluted weighted shares increased: Diluted weighted average common shares were 329,751 thousand, against 305,938 thousand a year earlier. Source

Coming up, as management said on 6 May 2026

• Cigna run-off services continue to 2026 year-end: Transition and run-off services for the former Cigna+Oscar arrangement will continue through December 31, 2026. Source

Figures management reported

Earlier plans management reported on

• On track: Management said it remains on track to significantly expand margins and achieve meaningful profitability in 2026. Source

Other quarters

• Q3 FY2026 earnings call
• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.