Oscar Health's stock faced significant pressure on February 4th after the company released its fourth-quarter and full-year 2024 financial results, which fell short of market expectations. The health insurance provider reported a quarterly revenue of $2.39 billion, missing the estimated $2.47 billion, and a quarterly EPS of -$0.62, which was below the anticipated -$0.58. Despite achieving a 56.5% increase in annual revenue to $9.2 billion and marking its first-ever net income profitability with $25.4 million, the company's outlook for 2025 raised concerns among investors. The revenue guidance for the upcoming year was perceived as underwhelming, contributing to the stock's decline.
Oscar Health's challenges in managing medical costs and navigating regulatory changes have added to the market's apprehension. The company's Medical Loss Ratio (MLR) increased slightly to 81.7%, indicating higher medical costs relative to premiums collected. While Oscar Health achieved notable financial milestones, including an adjusted EBITDA of $199.2 million, the market's focus remained on the company's ability to sustain profitability and growth in a competitive healthcare landscape.
Oscar Health (OSCR) shares closed at $15.28, down 8.78% from the previous close of $16.75 on February 3rd. After the market closed, the stock continued to slide, dropping an additional 13.29% to $13.25.