Oscar Health, Inc. (OSCR) shares tumbled 5.43% in pre-market trading on Wednesday following the release of its second-quarter 2025 financial results. The health insurance technology company reported disappointing numbers that fell short of analysts' expectations, triggering a sell-off among investors.

According to the earnings report, Oscar Health posted a Q2 EPS of $(0.89), missing the estimated $(0.86). Revenue for the quarter came in at $2.864 billion, falling short of the $2.891 billion forecast. The company's operating expenses remained high at $3,094.428 million, contributing to the earnings miss. Despite these challenges, Oscar Health reaffirmed its updated guidance for 2025, suggesting confidence in its overall business strategy.

While the company stated it is "well-positioned to manage through the market reset in 2025," investors seemed particularly concerned about the timeline for profitability. Oscar Health announced that it expects to return to profitability in 2026, which may be later than some shareholders had hoped. This delayed profitability outlook, combined with the earnings miss, appears to be the primary driver behind the pre-market plunge as investors reassess the company's near-term growth prospects and financial health.