Oscar Health (OSCR) investor relations material

Vision and strategy

• Aims to become the top consumer-preferred, AI-native carrier by leveraging a unified, cloud-native platform and focusing on the ACA market, while empowering individuals with consumer-centric innovation and technology-driven solutions.

• Plans to expand beyond ACA, targeting gig workers, part-time employees, public program participants, and the broader individual market, with a goal to serve all 350 million Americans.

• Lucie Health Marketplace will be payer-agnostic, enabling all carriers to compete and offering a broad range of health and wellness products, aiming to unite industry players around a shared technology infrastructure.

• Seeks to empower consumers with curated pricing, transparent healthcare wallets, personalized AI guidance, and 24/7 AI-powered member support.

• Strategic investments in technology and new business lines are expected to reshape the healthcare marketplace and eliminate provider/member friction.

Financial guidance and performance

• 2026 operating earnings guidance raised to $600M–$800M, with revenue projected at $18.7B–$19B and improved MLR (81%–82%).

• Expects 5%–7% operating margin and $4+ EPS by 2029, supported by 20%+ revenue CAGR from 2026–2029.

• SG&A expense ratio has been halved since IPO and is projected to fall below 15% by 2029, driven by AI-enabled efficiencies and fixed cost leverage.

• Capital generation of $4B–$4.5B expected, with a strong balance sheet ($1.9B statutory capital, $994M parent cash as of June 2026) supporting organic growth and strategic M&A.

• Lucie’s contribution to 2029 EPS targets is modest, but the platform is expected to become significant if adoption accelerates.

Market expansion and growth drivers

• ACA market projected to grow from 17M lives in 2026 to 23M by 2029, with a targeted 18%+ national share.

• Choice (ICHRA) market expected to reach 2.5M+ lives by 2029, driven by employer adoption and gig economy growth.

• Expansion into 400–600 new counties and new states, focusing on high-priority markets with favorable legislation and employer mix.

• Lucie Health Marketplace aims for 2.6M ACA and specialty products sold and 28,000 active brokers by 2029, targeting #1 marketplace status for consumer health products.

• Oscar's membership grew 60% from 2025 to 2026, outpacing a 13% decline in the total ACA market.