Oscar Health Sees 23% Q3 Revenue Growth as UBS Raises Target to $17
UBS upgraded Oscar Health to Neutral from Sell, raising its price target to $17 from $12 on Jan. 9, citing stronger exchange enrollment after subsidy expiration. Oscar’s Q3 2025 revenue rose 23% to $3.0 billion with loss ratio up 380 bps to 88.5%, and it plans 2026 expansion into 20 states.
1. UBS Upgrade and Valuation
On January 9, UBS revised its rating on Oscar Health to Neutral from Sell and set a new price target of $17, citing stronger-than-expected exchange enrollment following the expiration of enhanced subsidies. The firm noted that current share levels now reflect a more balanced valuation relative to growth prospects.
2. Q3 2025 Financial Performance
In the third quarter of 2025, Oscar Health reported a 23% year-over-year increase in total revenue to $3.0 billion. The company’s loss ratio climbed 380 basis points to 88.5%, driven by elevated medical costs and claim mix shifts.
3. 2026 Growth Initiatives
Oscar Health plans to expand its offerings into 20 states for the 2026 plan year, including several new markets. It will introduce the HelloMeno product and deploy AI-driven capabilities via its Oswell platform to boost operational efficiency and member engagement.