Oscar Health, Inc.

time. After the speaker's prepared remarks, there will be a question and answer session. If you'd like to ask a question during that time, please press star followed by one on your telephone keypad. Thank you. I will now like to turn the call over to Chris Potichar, Vice President of Treasury and Investor Relations.

Good morning, everyone. Thank you for joining us for our first quarter 2025 earnings call. Mark Berlini, Oscar Held's Chief Executive Officer, and Scott Blackley, Oscar's Chief Financial Officer, will host this morning's call. This call can also be accessed through our investor relations website at ir.hioscar.com. Full details of our results and additional management commentary are available in our earnings release, which can be found on our investor relations website at ir.hioscar.com. Any remarks that Oster makes about the future constitute forward-looking statements within the meaning of safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by those forward-looking statements as a result of various important factors, including those discussed in our annual report on Form 10-K for the period ended December 31, 2024, filed with the SEC, and other filings with the SEC, including our quarterly report on Form 10-Q for the quarterly period ended March 31, 2025, to be filed with the SEC. Such forward-looking statements are based on current expectations as of today. Oster anticipates that subsequent events and developments may cause estimates to change. While the company may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. The call will also refer to certain non-GAAP measures. A reconciliation of these measures to the most directly comparable GAAP measures can be found in the first quarter earnings press release available on the company's investor relations website at ir.highoscar.com. We have not provided a quantitative reconciliation of estimated full-year 2025 adjusted EBITDA as described on the call to GAAP net income because OSCAR is unable without making unreasonable efforts to calculate certain reconciling items with confidence. With that, I would like to turn the call over to our CEO, Mark Berlini.

Good morning. Thank you, Chris, and thank you all for joining us. Today, Oscar reported strong first quarter results. Our positive results were driven by continued top-line growth, bottom-line performance, and year-over-year improvements across nearly all core metrics. Oscar reported total revenue of $3 billion in the quarter, a 42% increase year-over-year. We also generated net income of approximately $275 million, a significant improvement of $98 million over the prior year period. Earnings from operations grew by $112 million to $297 million, and we improved our operating margin by 110 basis points year-over-year to 9.8 percent. MLR increased 120 basis points year-over-year to 75.4 percent, primarily due to our risk adjustment true-up for 2024. We also drove greater efficiency in the business and reported the lowest SG&A ratio in the company's history at 15.8%, a 260 basis point improvement year over year. Our first quarter performance demonstrates the strength of our strategic plan, and we expect meaningful margin expansion this year. Scott will review our first quarter results in a few moments. First, I will cover key business highlights. Oscar's first quarter results put us on a solid path for 2025. We closed the quarter with approximately 2 million effectuated members, a 41% increase year over year. Our solid retention and new membership growth reflect the value of Oscar's innovative plan designs and superior member experience. Our condition-focused plans are strong performers in the book. We are also seeing high levels of digital engagement across our IFP and ICRA membership, allowing us to more effectively manage member care. OSCAR is deepening our market presence with new partnerships that give members more value-added services. In the quarter, we launched OSCAR Community Resources with Find Health, a social care network. The program connects members with local food, housing, transportation, and other services beyond medical care that impact health. These resources will ultimately support our clinical intervention and case management programs to lower spend and improve clinical outcomes. Our technology is also further optimizing our operations and improving the member experience. The team recently launched a free live chat feature for Oscar Virtual Urgent Care, which collects patient symptoms and severity before provider engagement. Use of the new capability decreased member response times by 90%, and drove a 28% boost in provider efficiency. Similarly, our new AI tool for care guides is more quickly addressing member needs. We continue to build a scalable and efficient technology infrastructure that positions us to grow and differentiate the OSCAR experience. Before I close, I want to talk about the current policy environment and attention on the individual market. CMS's proposed program integrity initiatives targeting fraud, waste, and abuse are positive for the long-term sustainability of the market. However, rules such as the shortened enrollment window will constrain Americans' ability to shop amid many enrollment changes for 2026. Many individuals are already facing meaningful premium increases if the enhanced premium tax credits expire. They deserve adequate time to shop for plans that meet their needs. Oscar advocates for constructive solutions that strengthen the individual market. We are engaged with federal and state policymakers on both sides of the aisle. The individual market is a cornerstone of American healthcare, driving a record low uninsured rate and a cost trend below CPI for the last several years. Policymakers recognize the market's role in our economy and the gap it fills for their hardworking constituents. Oscar has been in this business since the ACA's inception, and we look forward to building an even larger individual market for individuals, families, and the business community. In summary, Oscar is off to a solid start in 2025. Our disciplined execution, strong top-line growth, and margin expansion position us to achieve our 2025 targets. Oscar has the talent, technology, and products to continue scaling a profitable business. Oscar is one of the fastest-growing players in the individual insurance market. We are creating a marketplace that meets consumer and employer expectations for choice, quality, and affordability. Our team's ability to stay responsive to stakeholder needs and consistently execute in dynamic markets will continue to unlock new pathways for growth. Before I hand the call over to Scott, I want to thank the Oscar team for their dedication and commitment to our members and partners. We look forward to delivering strong results in 2025.