Oscar Health, Inc. (OSCR) stock plummeted 15.77% in Tuesday's trading session after the health insurer reported worse-than-expected fourth quarter earnings results and provided underwhelming full-year 2025 revenue guidance.
For the fourth quarter of 2024, Oscar Health posted an earnings per share loss of $0.62, wider than the consensus analyst estimate of $0.58 per share. The company's revenue for the quarter came in at $2.39 billion, missing expectations of $2.47 billion. Higher medical costs were cited as a key factor behind the earnings miss.
Looking ahead, Oscar Health's full-year 2025 revenue guidance of $11.2-11.3 billion fell short of the consensus estimate of $11.69 billion, raising concerns among investors about the company's growth prospects. The disappointing guidance overshadowed the company's forecast for a return to profitability in 2025, with expected earnings from operations between $225-275 million.