Oscar Health, Inc. (OSCR) shares soared 5.29% in pre-market trading on Tuesday, despite reporting disappointing preliminary second-quarter results for 2025. The health insurance technology company's stock movement appears to be driven by investor optimism surrounding its revised full-year outlook, overshadowing the weak quarterly performance.

According to the company's announcement, Oscar Health reported a Q2 adjusted EBITDA of -$120 million, falling short of the IBES estimate of $116.9 million. The net income for the quarter stood at -$228 million, reflecting significant losses. However, investors seem to be looking past these figures and focusing on the company's forward-looking statements.

Oscar Health revised its 2025 guidance, now anticipating revenue between $12.0 billion and $12.2 billion. The company also expects a Medical Loss Ratio of 86.0%-87.0% for the year. These projections, along with potential cost-cutting measures or strategic shifts not explicitly mentioned in the released information, may be fueling investor confidence. The pre-market rally suggests that market participants are betting on Oscar Health's long-term potential and its ability to navigate current challenges in the competitive health insurance landscape.