OSCR

Oscar Health is a technology-driven health-insurance company. The headline development in FY2025 is a sharp reversal: after finally turning a small profit of $25.4M in FY2024, the company swung back to a net loss of -$443M, with an operating loss of -$396M and diluted EPS of -$1.69. That relapse, after years of losses (-$573M in FY2021, -$606M in FY2022, -$271M in FY2023), undercuts the thesis that Oscar had reached durable profitability and raises questions about medical-cost trends and pricing discipline in its ACA-exchange-heavy book. Return on equity was -45.3%. (Note: the XBRL-tagged revenue figure captures only a small fee line, not Oscar's premium revenue, so price-to-sales and margin ratios derived from it are not meaningful and are excluded from this call.)

The balance sheet carries real risk. Liabilities of $5.34B sit against just $978M of equity — a 5.47x liabilities/equity ratio — and accumulated retained earnings are deeply negative at -$3.29B. The company has been adding leverage, issuing $410M of 2.25% convertible senior notes due 2030 and lifting long-term debt 43.6% to $430M, while the 10-K's lead risk factor warns its debt obligations 'expose us to risks that could materially adversely affect our liquidity.' Convertible notes also create dilution risk on conversion, partly mitigated by capped-call transactions.