Oscar Health, Inc. (OSCR) shares surged 5.07% in intraday trading on Tuesday, defying expectations after the company released 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, which has overshadowed 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 a substantial loss of $228 million. Despite these underwhelming figures, investors seem to be focusing on the company's forward-looking projections.

The rally is primarily attributed to Oscar Health's revised 2025 guidance. The company now anticipates annual revenue between $12.0 billion and $12.2 billion, up from the prior guidance of $11.2 billion to $11.3 billion. This significant increase in projected revenue appears to have instilled confidence in investors, potentially indicating improved growth prospects for the company. Additionally, Oscar Health expects a Medical Loss Ratio of 86.0% to 87.0% for 2025. While the company still projects a loss from operations of $200 million to $300 million for the full year, the market's positive reaction suggests that these forward-looking metrics may have exceeded previous expectations, overshadowing the current quarter's weak performance.