Company Overview
Oscar Health, Inc. operates as a healthcare technology company within the United States, offering health plans to individuals, families, employees, and small group markets while providing platforms like Campaign Builder to power others throughout the healthcare system. The company functions within the Healthcare sector, specifically the Healthcare Plans industry, positioning itself as a provider of insurance and technology solutions rather than a traditional asset-heavy insurer. As of the latest available data, the company holds a market capitalization of $3.96B and reported trailing twelve-month revenue of $11.70B, employing a workforce of 2,305 individuals. These valuation and revenue figures indicate that Oscar Health maintains a significant position in the competitive health insurance landscape, commanding a substantial market value despite operating with a relatively lean employee base compared to legacy carriers. The scale of its operations, evidenced by its multi-billion dollar revenue stream, suggests a mature business model that leverages technology to reach a broad customer base across the individual and small group markets.
Financial Health
The company reported trailing twelve-month revenue of $11.70B, yet it recorded a net income of $-443,151,008 and an EBITDA of $-367,464,992, revealing a cost structure where operating expenses significantly outpace profitability in the current period. Despite the substantial net loss, the company generated positive free cash flow of $698.00M, which indicates a degree of financial flexibility allowing for operational investments or debt repayment without immediate reliance on external equity financing. The company's margins reflect this challenging profitability profile, with a gross margin of 14.4%, an operating margin of -11.9%, and a profit margin of -3.8%, suggesting that while the core insurance product retains pricing power, overhead costs and claims management expenses are currently eroding overall profitability. On the balance sheet, Oscar Health holds $3.99B in cash against $498.80M in debt, resulting in a debt-to-equity ratio of 50.86, which implies a leveraged position where cash reserves substantially exceed total liabilities. Liquidity is further assessed by a current ratio of 0.95, indicating that current assets fall slightly short of current liabilities, a common scenario for high-growth technology firms that prioritize reinvestment over maintaining a buffer of 1.0 or higher. Return on Equity stands at -44.4% and Return on Assets is -4.4%, metrics that reveal that management effectiveness in generating returns on shareholder capital and total assets is currently negative, a typical characteristic for companies in a heavy investment phase before achieving sustained profitability.
Valuation Assessment
Valuation metrics for Oscar Health show a trailing P/E ratio of N/A due to the net loss, while the forward P/E is 9.88, implying that the market prices the stock based on anticipated future earnings rather than current historical performance. The price-to-book ratio is 4.05, indicating that the market values the company at a significant premium of four times its book value, which often reflects investor confidence in the underlying technology assets and growth potential not captured on the balance sheet. Alternative valuation metrics include a price-to-sales ratio of 0.34 and an EV/EBITDA of -1.27, suggesting that the stock is priced very cheaply relative to its revenue base and that the negative enterprise value multiple underscores the current unprofitability of the business. In terms of price action, the 52-week high is $23.80 and the 52-week low is $11.20, meaning the current trading price sits roughly 60% below the 52-week high and 37% above the 52-week low, highlighting the significant volatility experienced within the past year. The stock carries a beta of 1.90, which means its price volatility is nearly double that of the broader market, signaling high sensitivity to market fluctuations and sector-specific events.
Growth & Income
Revenue growth stands at 17.3% year-over-year, while earnings growth is listed as N/A due to the net loss, implying that top-line expansion is currently outpacing any earnings recovery, a pattern typical for capital-intensive or technology-driven scaling phases. As a non-dividend payer, Oscar Health reports a dividend yield of N/A and a payout ratio of 0.0%, indicating that the company retains all earnings to fund operations, research, and development rather than distributing cash to shareholders. This reinvestment strategy aligns with the company's need to sustain its 17.3% revenue growth trajectory and cover the significant operating losses inherent in its current business model. The overall growth and income profile is characterized by strong revenue expansion funded by internal cash generation, but with no current income distribution to shareholders, creating a speculative investment case reliant on future profitability turns.