Oscar Health recently reported its Q4 and full-year 2024 earnings, showcasing significant improvement with a net income of $25 million, transitioning from a substantial loss in the previous year. This positive financial performance likely supported the stock's 4% price increase over the last quarter. Despite a widened quarterly net loss, the basic and diluted loss per share improved, indicating financial resilience. The announcement of executive changes and a favorable earnings guidance for 2025 with revenue expectations of $11.2 to $11.3 billion may have further buoyed investor confidence. In contrast, the broader market faced downward pressure, with major indexes declining as concerns about the economy lingered following tariff discussions and fluctuating tech stock values. Oscar's performance appears robust against this backdrop, which saw a general market drop of 4.4% over the same period. Overall, Oscar's strategic shifts and earnings outlook likely played a role in its positive quarterly performance.

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Over the past three years, Oscar Health's total shareholder returns amounted to 74.11%, reflecting a significant upward trajectory. This period saw the company achieve profitability, reporting net income for the first time, which marked a robust turnaround from previous losses. An important milestone was Oscar's entry into the ACA marketplace in New Jersey and other states by late 2024, offering tailored and affordable health plans. This expansion likely contributed to increased investor optimism and share performance.

Additionally, the leadership overhaul announced in February 2025 signified a renewed focus on operational efficiency, further strengthening investor confidence. However, it's important to note that despite these positive developments, Oscar underperformed compared to the broader US insurance industry and market over the past year. As of 2025, Oscar maintains a forecast of earnings and revenue growth above the market average, suggesting continued investor interest in the company's future prospects.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:OSCR.

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