- Top line: Total Q3 revenue was $2.99B, up ~23% YoY as membership expanded. MLR rose to 88.5% on higher market morbidity and risk‑adjustment accruals. SG&A ratio improved to 17.5% from 19.0%. [1]
- Earnings vs. estimates:EPS of –$0.53 beat consensus (e.g., Refinitiv/Zacks ranges), while revenue missed expectations; management reaffirmed 2025 guidance. [2]
- Outlook unchanged: FY25 revenue $12.0–$12.2B, MLR 86–87%, SG&A 17.1–17.6%, and loss from operations –$200M to –$300M. [3]
- Capital move: On Nov. 5, the company exchanged $187.5M of 7.25% 2031 notes for ~23.27M shares, after entering an exchange agreement that allows up to $250M of notes to be exchanged by Dec. 14, 2025. [4]
What happened in Q3
Oscar Health reported third‑quarter revenue of $2,985,984,000 (in thousands), up from $2,423,482,000 a year ago—about 23% YoY growth, driven largely by higher membership. The medical loss ratio (MLR) increased to 88.5% (from 84.6%), which the company tied to a $130M net risk‑adjustment transfer accrual reflecting higher average market morbidity; this was partly offset by $84M of favorable prior‑period development and $22M favorable intra‑year development. The SG&A expense ratio improved to 17.5% (from 19.0%), reflecting cost discipline and fixed‑cost leverage. [5]
On the bottom line, Oscar posted a net loss of $137.5M (–$0.53/share) versus a $54.6M (–$0.22/share) loss a year ago. Loss from operations was $129.3M (vs. $48.4M), and Adjusted EBITDA was a loss of $101.5M. Total membership reached ~2.117M (vs. ~1.654M in Q3 2024), up roughly 28% year‑over‑year. [6]
From a market‑reaction standpoint, third‑party coverage emphasized the EPS beat (e.g., –$0.53 vs. expectations around –$0.55) alongside a revenue miss (consensus ~$3.08–$3.14B). [7]
Guidance: unchanged across key metrics
Management reaffirmed its full‑year 2025 outlook:
- Total revenue:$12.0B–$12.2B
- MLR:86.0%–87.0%
- SG&A ratio:17.1%–17.6%
- Loss from operations:–$200M to –$300M
This maintained guidance aligns broadly with external expectations (e.g., FactSet revenue near $12.0B). [8]
On today’s call and in the release, leadership reiterated confidence in expanding margins and a return to profitability in 2026, with pricing and geographic expansion cited as contributors. [9]
Balance sheet: convertible notes exchange simplifies capital structure
Beyond operating results, Oscar entered an exchange agreement (Nov. 3) with Oasis FD Holdings, L.P. (“Dragoneer”) permitting up to $250M of its 7.25% Convertible Senior Notes due 2031 to be exchanged by Dec. 14, 2025. On Nov. 5, $187.5M principal was exchanged for 23,273,179 shares of Class A common stock. The company notes this reduces future interest expense and removes certain covenants tied to the 2031 notes; however, it is dilutive to existing equity holders. [10]
(Background: the company also issued $355M of 2.25% convertible senior subordinated notes due 2030 in mid‑September, alongside capped calls; that financing context is relevant to its ongoing capital optimization.) [11]
The market’s read—so far
Early coverage framed the quarter as a mixed print—EPS ahead, revenue behind—with the steady guidance and capital moves easing some concerns about funding costs heading into 2026. [12]
Numbers at a glance (Q3 2025)
- Revenue:$2.99B (+~23% YoY)
- MLR:88.5% (+3.9 ppts YoY)
- SG&A ratio:17.5% (–1.5 ppts YoY)
- Net loss:$137.5M (–$0.53/share)
- Adj. EBITDA:–$101.5M
- Members:~2.117M (≈+28% YoY)
- FY25 guidance:Revenue $12.0–$12.2B; MLR 86–87%; SG&A 17.1–17.6%; Op. loss –$200M to –$300M. [13]
What to watch next
- Open Enrollment dynamics: Marketplace enrollment trends and morbidity mix could influence MLR into Q4. [14]
- Execution on cost discipline: The improved SG&A ratio will be a key proof point as scale builds. [15]
- Further note exchanges: Whether Dragoneer exchanges the remaining authorization (~$62.5M) under the agreement before Dec. 14, 2025. [16]
- Path to 2026 profitability: Watch margin cadence and any commentary on risk‑adjustment trends.
Sources
Press release and investor materials; SEC filings; and major wire services reporting on estimates and market reaction.
Disclosure: This article is for informational purposes only and is not investment advice.
References
1. www.businesswire.com, 2. www.tradingview.com, 3. www.businesswire.com, 4. www.sec.gov, 5. www.businesswire.com, 6. www.businesswire.com, 7. www.tradingview.com, 8. www.businesswire.com, 9. www.businesswire.com, 10. www.sec.gov, 11. seekingalpha.com, 12. www.tradingview.com, 13. www.businesswire.com, 14. www.tradingview.com, 15. www.businesswire.com, 16. www.sec.gov
