NYSE$OSCR

Oscar Health Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Oscar Health reported strong third quarter results with significant year-over-year improvement across all core ratios.

Oscar Health announced its financial results for Q3 2023, showcasing significant year-over-year improvements across core ratios. The company is raising its full year outlook for 2023 InsuranceCo Adjusted EBITDA and consolidated Adjusted EBITDA, projecting profitability in its insurance business in 2023 and Total Company Adjusted EBITDA profitability in 2024.

  • Direct and Assumed Policy Premiums decreased by 5% YoY to $1.6 billion.
  • Premiums earned increased by 46% YoY to $1.4 billion.
  • Net loss improved by $127.8 million YoY to $65.7 million.
  • Adjusted EBITDA loss improved by $139.5 million YoY to $20.3 million.

Headline financials

Total Revenue

$1.44B

Previous: $978M+47.2%
EPS (adj)

-$0.29

Previous: -$0.91+68.1%
Medical loss ratio

83.8%

Previous: 89.9%-6.8%
Capital Expenditures

-$6.48M

No prior period
Free Cash Flow

-$65.4M

Previous: -$193M+66.1%
Net Income

-$65.4M

Previous: -$193M+66.1%
Operating Income

-$58.2M

Previous: -$192M+69.7%
Gross Profit

$280M

Previous: $132M+111.7%
Cash & Equivalents

$1.4B

Previous: $2.11B-33.8%
Total Assets

$3.35B

Previous: $4.31B-22.3%
Stock-Based Comp

$28.8M

Previous: $28.6M+0.7%

Revenue & EPS history

Oscar Health · Revenue · Quarterly

$1.44B

Q3 2023+47.2%vs Q3 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Forward guidance

Oscar Health is raising its full year 2023 outlook for InsuranceCo Adjusted EBITDA and consolidated Adjusted EBITDA to reflect year-to-date outperformance. The Company projects InsuranceCo Adjusted EBITDA to be in the $155 million to $165 million range and consolidated Adjusted EBITDA loss to be in the ($60) million to ($50) million range.

Tailwinds

  • Direct and Assumed Policy premiums at the high-end of the $6.4 billion - $6.6 billion range
  • Medical Loss Ratio at the low-end of the 82% - 84% range
  • InsuranceCo Administrative Expense Ratio near the midpoint of the 17% - 18% range
  • InsuranceCo Adjusted EBITDA of $155 million - $165 million, above the high-end of the prior range of $20 million - $120 million
  • Adjusted Administrative Expense Ratio near the midpoint of the 20.5% - 21.5% range

Headwinds

  • Adjusted EBITDA loss of ($60) million - ($50) million, above the high-end of the prior range of ($175) million - ($75) million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+3.7%

Avg return

Earnings day

+5.6%

Avg return

5 days after

+7.5%

Avg return

30 days after

64%

16 / 25 earnings

Positive

+30.0%

Q1 2025

Best reaction

-23.9%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.7%+22.6%+36.6%
Q4 2025+1.7%+6.0%+2.7%
Q3 2025-2.8%-12.8%-1.5%
Q1 2025+30.0%+28.7%+18.0%
Q4 2024+3.1%-3.7%+4.5%
Q3 2024-12.9%-12.8%+0.4%
Q2 2024+7.2%+4.4%-1.4%
Q1 2024+9.3%+14.1%+2.8%
Q4 2023+22.7%+27.5%+7.7%
Q3 2023+23.5%+24.5%+42.0%
Q2 2023+8.6%+1.9%-10.5%
Q1 2023-8.8%-6.6%+17.8%
Q4 2022+21.0%+36.2%-3.9%
Q3 2022-23.9%-4.5%-11.3%
Q2 2022+19.9%+21.1%-3.7%
Q1 2022-8.9%-2.0%-25.0%
Q4 2019+6.3%+2.5%+39.1%
Q4 2021+2.4%+15.6%+21.9%
Q3 2020-2.4%-6.3%-12.7%
Q3 2021-23.3%-25.2%-33.0%
Q2 2020-16.4%-11.8%+19.4%
Q2 2021-0.9%-12.0%+17.9%
Q4 2020+15.2%+14.5%+23.1%
Q1 2020+15.2%+14.5%+23.1%
Q1 2021+3.6%+4.2%+14.0%

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