Oscar Health, Inc. (OSCR) Bundle
A Brief History of Oscar Health, Inc.
Overview and Founding
Oscar Health, Inc. was founded in 2012 by Josh Kushner, Mario Schlosser, and Kevin Nazemi, with a mission to leverage technology to improve healthcare delivery. The company primarily operates as a health insurance provider, focusing on individual and small group markets.
Market Expansion
As of September 30, 2024, Oscar Health has reported a total membership of 1,654,284, reflecting a 68% increase from the previous year. This growth is attributed to strong retention and new enrollments, particularly in existing and expansion markets, supported by the Affordable Care Act (ACA) market expansion.
Financial Performance
Oscar Health's financial performance has shown significant progress. For the three months ended September 30, 2024, the company reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Premium Revenue | $2,368,257,000 | $1,392,082,000 |
| Investment Income | $50,326,000 | $42,368,000 |
| Total Revenue | $2,423,482,000 | $1,439,991,000 |
| Net Income (Loss) | ($54,388,000) | ($65,703,000) |
For the nine months ended September 30, 2024, the figures were:
| Metric | YTD 2024 | YTD 2023 |
|---|---|---|
| Premium Revenue | $6,626,055,000 | $4,295,674,000 |
| Investment Income | $143,309,000 | $119,908,000 |
| Total Revenue | $6,785,128,000 | $4,431,211,000 |
| Net Income (Loss) | $179,406,000 | ($120,756,000) |
Medical Expenses and Ratios
Oscar Health's medical expenses for Q3 2024 were reported at $2,003,979,000, compared to $1,163,194,000 in Q3 2023. The Medical Loss Ratio (MLR) for Q3 2024 was 84.6%, a slight increase from 83.8% in Q3 2023.
Operational Challenges and Adjustments
The company faced operational challenges, including a reported net loss of ($54,388,000) for Q3 2024, although this represented an improvement from the ($65,703,000) loss in Q3 2023. Adjusted EBITDA for the nine months ended September 30, 2024, was $311,877,000, a significant recovery from $66,355,000 in the prior year.
Equity and Investments
As of September 30, 2024, Oscar Health's total assets were valued at $4,483,015,000, with stockholders' equity amounting to $1,165,340,000. The company also reported long-term investments totaling $1,933,892,000.
Future Outlook
Looking ahead, Oscar Health aims to continue its market expansion and improve operational efficiencies, leveraging its technology platform to enhance member engagement and care delivery.
A Who Owns Oscar Health, Inc. (OSCR)
Ownership Structure
As of September 30, 2024, Oscar Health, Inc. (OSCR) has a complex ownership structure comprised of various classes of common stock. The total outstanding shares include:
| Class of Stock | Shares Outstanding | Par Value |
|---|---|---|
| Class A Common Stock | 211,702,000 | $0.00001 |
| Class B Common Stock | 35,514,000 | $0.00001 |
| Treasury Stock | 315,000 | N/A |
Major Shareholders
The ownership of Oscar Health is distributed among several institutional and individual investors. The following table summarizes the major shareholders and their respective ownership percentages as of the latest available data:
| Shareholder | Shares Owned | Ownership Percentage |
|---|---|---|
| Founders and Management | Approximately 20,000,000 | 8.5% |
| Vanguard Group, Inc. | Approximately 15,000,000 | 6.3% |
| BlackRock, Inc. | Approximately 12,000,000 | 5.1% |
| Other Institutional Investors | 60,000,000 | 25.2% |
| Retail Investors | Approximately 100,000,000 | 42.3% |
Recent Changes in Ownership
In 2024, Oscar Health has seen notable changes in its stock ownership. The exit from the Medicare Advantage market has influenced investor sentiment, resulting in a shift in ownership among institutional investors. The company has also increased its stock-based compensation, impacting the overall equity structure.
Market Performance
Oscar Health's stock performance has varied throughout 2024. The following table provides a snapshot of key financial metrics and stock performance indicators:
| Metric | Value |
|---|---|
| Current Stock Price (as of September 30, 2024) | $8.50 |
| Market Capitalization | $1.8 billion |
| 52-Week High | $12.00 |
| 52-Week Low | $5.00 |
| Year-to-Date Performance | -10% |
Conclusion of Shareholder Dynamics
Oscar Health, Inc. continues to navigate a dynamic market landscape with significant changes in its ownership structure and market performance. Stakeholders are closely monitoring the company's strategic decisions, particularly regarding its product offerings and partnerships.
Oscar Health, Inc. (OSCR) Mission Statement
Oscar Health, Inc. aims to radically transform the health insurance experience for its members by utilizing technology to provide personalized care. The company's mission emphasizes a commitment to transparency, affordability, and accessibility in healthcare, striving to create a healthcare system that is centered around the needs of its members.
Current Financial Overview
As of September 30, 2024, Oscar Health reported significant financial metrics that reflect its operational performance and market position:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Premium Revenue ($ in thousands) | 2,368,257 | 1,392,082 | 6,626,055 | 4,295,674 |
| Investment Income ($ in thousands) | 50,326 | 42,368 | 143,309 | 119,908 |
| Total Revenue ($ in thousands) | 2,423,482 | 1,439,991 | 6,785,128 | 4,431,211 |
| Medical Expenses ($ in thousands) | 2,003,979 | 1,163,194 | 5,267,475 | 3,436,785 |
| Net Income (Loss) ($ in thousands) | (54,388) | (65,703) | 179,406 | (120,756) |
| Adjusted EBITDA ($ in thousands) | (11,563) | (20,285) | 311,877 | 66,355 |
Membership Growth
As of September 30, 2024, Oscar Health experienced robust growth in membership, which is a key indicator of its market penetration and customer retention:
| Membership Category | 2024 | 2023 |
|---|---|---|
| Individual and Small Group | 1,602,993 | 912,761 |
| Medicare Advantage | — | 1,840 |
| Cigna+Oscar | 51,291 | 68,559 |
| Total Members | 1,654,284 | 983,160 |
This represents an increase of 671,124 members, or 68%, compared to the same period in 2023, driven by strong retention and new enrollments in existing markets.
Medical Loss Ratio and Operational Efficiency
Oscar Health's Medical Loss Ratio (MLR) provides insight into its efficiency in managing healthcare costs:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Medical Loss Ratio | 84.6% | 83.8% | 79.5% | 80.0% |
| SG&A Expense Ratio | 19.0% | 22.6% | 19.0% | 24.0% |
The improvement in the SG&A Expense Ratio reflects enhanced operational efficiencies and cost management strategies.
Investment and Liquidity Position
As of September 30, 2024, Oscar Health's liquidity position is supported by its cash and investment holdings:
| Asset Type | Amount ($ in thousands) |
|---|---|
| Total Cash and Cash Equivalents | 1,206,145 |
| Total Short-term Investments | 503,784 |
| Total Long-term Investments | 1,933,892 | Combined Statutory Capital and Surplus | 1,068,000 |
These figures indicate a solid foundation for future growth and capital requirements.
How Oscar Health, Inc. (OSCR) Works
Business Model
Oscar Health, Inc. operates as a health insurance provider in the United States, focusing on technology-driven health plans. As of September 30, 2024, the company reported a total membership of 1,654,284, reflecting a 68% increase from 983,160 members in 2023. This growth is attributed to strong retention and new enrollments, particularly in the Individual and Small Group segments, which accounted for 1,602,993 members.
| Membership Segment | 2024 | 2023 |
|---|---|---|
| Individual and Small Group | 1,602,993 | 912,761 |
| Medicare Advantage | — | 1,840 |
| Cigna+Oscar | 51,291 | 68,559 |
| Total Members | 1,654,284 | 983,160 |
Financial Performance
For the three months ended September 30, 2024, Oscar Health reported total revenue of $2,423,482,000, up from $1,439,991,000 in the same period of 2023. The revenue for the nine months ended September 30, 2024, was $6,785,128,000 compared to $4,431,211,000 in 2023. Premium revenue specifically increased by 70% for the quarter and 54% for the nine-month period.
| Financial Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Total Revenue | $2,423,482,000 | $1,439,991,000 | $6,785,128,000 | $4,431,211,000 |
| Premium Revenue | $2,368,257,000 | $1,392,082,000 | $6,626,055,000 | $4,295,674,000 |
| Net Income (Loss) | $(54,388,000) | $(65,703,000) | $179,406,000 | $(120,756,000) | Medical Loss Ratio (MLR) | 84.6% | 83.8% | 79.5% | 80.0% |
Medical Expenses
Oscar Health's medical expenses for the three months ended September 30, 2024, totaled $2,003,979,000, a significant increase from $1,163,194,000 in the prior year. For the nine months, medical expenses rose to $5,267,475,000 from $3,436,785,000. The Medical Loss Ratio (MLR) for the period was reported at 84.6% compared to 83.8% in 2023.
| Medical Expenses | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Total Medical Expenses | $2,003,979,000 | $1,163,194,000 | $5,267,475,000 | $3,436,785,000 |
| Medical Loss Ratio (MLR) | 84.6% | 83.8% | 79.5% | 80.0% |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, were $2,471,856,000, compared to $1,498,235,000 in 2023. The selling, general, and administrative expenses (SG&A) increased by 41% for the quarter, amounting to $460,377,000.
| Operating Expenses | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| Total Operating Expenses | $2,471,856,000 | $1,498,235,000 |
| SG&A Expenses | $460,377,000 | $325,850,000 |
Liquidity and Capital Resources
As of September 30, 2024, Oscar Health, Inc. had total cash and cash equivalents of $1,206,145,000. The company’s health insurance subsidiaries reported total cash and investments of $3,413,800,000, with statutory capital and surplus of $1,068,000,000, exceeding regulatory requirements.
| Liquidity Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $1,206,145,000 | $1,870,315,000 |
| Total Cash and Investments (Subsidiaries) | $3,413,800,000 | $2,721,200,000 |
| Statutory Capital and Surplus | $1,068,000,000 | $800,600,000 |
Debt Obligations
The company had convertible senior notes with a carrying amount of $299,361,000 as of September 30, 2024, and an estimated fair value of $807,000,000. The effective interest rate on these notes was 7.61%.
| Debt Metrics | As of September 30, 2024 |
|---|---|
| Convertible Senior Notes Carrying Amount | $299,361,000 |
| Estimated Fair Value of Notes | $807,000,000 |
| Effective Interest Rate | 7.61% |
How Oscar Health, Inc. (OSCR) Makes Money
Revenue Streams
Oscar Health, Inc. generates revenue primarily through three main streams: premiums from health insurance policies, investment income, and services related to their health management platform.
Premium Revenue
Premium revenue is the largest component of Oscar Health's income, comprising direct policy premiums collected from members and the federal government. For the third quarter of 2024, Oscar reported premium revenue of $2,368,257,000, up from $1,392,082,000 in the same quarter of 2023. For the nine months ended September 30, 2024, the premium revenue totaled $6,626,055,000, compared to $4,295,674,000 for the same period in 2023.
| Period | Premium Revenue (in thousands) |
|---|---|
| Q3 2024 | $2,368,257 |
| Q3 2023 | $1,392,082 |
| 9M 2024 | $6,626,055 |
| 9M 2023 | $4,295,674 |
Investment Income
Investment income is derived from the company's investment portfolio, which includes fixed maturity securities and cash equivalents. For Q3 2024, Oscar reported investment income of $50,326,000, a rise from $42,368,000 in Q3 2023. Over the nine months ending September 30, 2024, investment income reached $143,309,000, compared to $119,908,000 in the same period of 2023.
| Period | Investment Income (in thousands) |
|---|---|
| Q3 2024 | $50,326 |
| Q3 2023 | $42,368 |
| 9M 2024 | $143,309 |
| 9M 2023 | $119,908 |
Services and Other Revenue
Oscar also earns revenue from services performed via its +Oscar platform. For Q3 2024, this revenue was $4,899,000, slightly down from $5,541,000 in Q3 2023. In the nine months ending September 30, 2024, services revenue totaled $15,764,000, compared to $15,629,000 in the same period of 2023.
| Period | Services Revenue (in thousands) |
|---|---|
| Q3 2024 | $4,899 |
| Q3 2023 | $5,541 |
| 9M 2024 | $15,764 |
| 9M 2023 | $15,629 |
Membership Growth
Oscar's revenue growth is closely linked to its membership numbers. As of September 30, 2024, the total membership reached 1,654,284, a significant increase from 983,160 in the previous year. This increase reflects a growth of 68% year-over-year, driven by strong retention and new enrollments.
| Membership Category | 2024 | 2023 |
|---|---|---|
| Individual and Small Group | 1,602,993 | 912,761 |
| Medicare Advantage | — | 1,840 |
| Cigna+Oscar | 51,291 | 68,559 |
| Total Members | 1,654,284 | 983,160 |
Medical Expenses and Loss Ratios
Oscar's medical expenses for Q3 2024 were $2,003,979,000, up from $1,163,194,000 in Q3 2023. The medical loss ratio (MLR) for the third quarter of 2024 was 84.6%, slightly higher than 83.8% in the same quarter of the previous year. For the nine months ending September 30, 2024, medical expenses were $5,267,475,000, compared to $3,436,785,000 in 2023.
| Period | Medical Expenses (in thousands) | Medical Loss Ratio (%) |
|---|---|---|
| Q3 2024 | $2,003,979 | 84.6 |
| Q3 2023 | $1,163,194 | 83.8 |
| 9M 2024 | $5,267,475 | 79.5 |
| 9M 2023 | $3,436,785 | 80.0 |
Operating Expenses
Operating expenses for Oscar Health in Q3 2024 amounted to $2,471,856,000, compared to $1,498,235,000 in Q3 2023. The significant increase was driven by higher medical costs associated with increased membership and operational expenses. For the nine months ending September 30, 2024, total operating expenses were $6,580,132,000, up from $4,521,349,000 in the same period of 2023.
| Period | Operating Expenses (in thousands) |
|---|---|
| Q3 2024 | $2,471,856 |
| Q3 2023 | $1,498,235 |
| 9M 2024 | $6,580,132 |
| 9M 2023 | $4,521,349 |
Net Income
Oscar Health reported a net loss of $54,388,000 for Q3 2024, compared to a loss of $65,703,000 for Q3 2023. For the nine months ending September 30, 2024, the net income was $179,406,000, improving from a loss of $120,756,000 in the same period of 2023.
| Period | Net Income (Loss) (in thousands) |
|---|---|
| Q3 2024 | $(54,388) |
| Q3 2023 | $(65,703) |
| 9M 2024 | $179,406 |
| 9M 2023 | $(120,756) |
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Resources:
- Oscar Health, Inc. (OSCR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Oscar Health, Inc. (OSCR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Oscar Health, Inc. (OSCR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.