Oscar Health Stock Climbs After Q3 Loss Comes In Lower Than Wall Street Expectations: CEO Projects Return To Profitability In 2026

• Oscar Health’s quarterly revenue was $2.99 billion, compared to $2.4 billion a year ago. 
• The company stated that the increase in revenue compared to the same period last year was driven by higher membership. 
• The company stated that on November 3, it entered into an exchange agreement with Oasis FD Holdings regarding the 7.25% convertible senior notes due 2031.

Oscar Health (OSCR) shares rose over 10% before the bell on Thursday after the company posted a smaller-than-expected loss in the third quarter, with CEO Mark Bertolini expecting the company to return to profitability in 2026.

“Our disciplined pricing and geographic expansion position us to profitably grow market share, and we are confident in our ability to expand margins and return to profitability in 2026,” Bertolini said.

Retail sentiment on Oscar Health jumped to ‘bullish’ from ‘bearish’ territory compared to a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits.

Oscar Health’s Q3 Results

The company’s third-quarter loss per share came in at $0.53, compared with Wall Street expectations of a loss of $0.58, according to data compiled by Fiscal AI.

Oscar Health’s quarterly revenue was $2.99 billion, compared to $2.4 billion a year ago. This compares to an estimate of $3.08 billion. The company stated that the increase in revenue compared to the same period last year was driven by higher membership. Still, it was partially offset by an increase in the net risk adjustment transfer accrual.

The medical loss ratio was 88.5% for the third quarter of 2025, compared to 84.6% a year ago. The increase was primarily driven by a rise in average market morbidity, resulting in a $130 million increase in the net risk adjustment transfer accrual.

Convertible Senior Notes

The company stated that on November 3, it entered into an exchange agreement with Oasis FD Holdings regarding the 7.25% convertible senior notes due 2031.

According to the agreement, Oasis FD Holdings may exchange an aggregate principal amount of about $250 million of the notes by December 14 for several shares of Class A common stock based on the conversion rate in the applicable indenture and a payment of up to $17.8 million.

Oscar Health said that it primarily looks to settle this payment using the company's shares. It noted that on November 5, approximately $187.5 million aggregate principal amount of notes were exchanged for about 23.3 million shares.

Shares of Oscar Health have gained nearly 27% this year.

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