Oscar Health is not playing by the old insurance playbook. The company turned profitable in 2024 and is now projecting at least 20% compound annual revenue growth through 2027. That’s not a stretch goal. That’s internal guidance. EPS is expected to hit $2.25 by 2027, excluding subsidies. The company is trading at $20.43 as of July 2, 2025. Apply a 30 price-to-earnings multiple to that 2027 target and you get $67 per share. That’s a 3X move from here.
OSCAR is targeting AT LEAST 20% Revenue CAGR & $2.25 in EPS by 2027 EXCLUDING subsidies!
Using 30PE, we get $67 per share or a 3X from here.
I think this is a buy the dip opportunity! $OSCR pic.twitter.com/X238PP5EG8
— Patient Investor (@patientinvestt) July 1, 2025
Oscar is not a legacy insurer. It’s a tech-driven platform with 2.04 million members and a 98% claims auto-adjudication rate. Q1 2025 revenue hit $3.05 billion, up 42% year over year. Net income landed at $275 million. Operating margin expanded to 9.8%. SG&A ratio dropped to 15.8%. The company holds $4.1 billion in cash and investments. Debt is minimal. Gross margin sits at 91%. These are not numbers you see in traditional insurance.
The company is expanding into 150 new metro areas by 2027. That doubles its footprint. Market share is expected to rise from 13% to 18%. Oscar is also launching new ICHRA products for small and mid-sized businesses. That opens up a 96 million life addressable market. The company is targeting employers with high benefit costs and industries with heavy utilization. That’s where the margin lives.
Oscar’s AI stack is not a buzzword. It’s operational. The company runs over 20 AI use cases across claims, call centers, clinical documentation, and member engagement. Documentation time in virtual care dropped by 12.5 minutes. Messaging encounters saw a 40% reduction in administrative effort. These are real efficiency gains. They show up in the numbers.
The company is also building out its +Oscar platform. That’s a campaign builder for regional health plans and ACOs. Over 200 campaigns run monthly. One client saw a 118% increase in wellness visits. Another saw a 6X ROI by switching to 90-day prescriptions. These aren’t pilots. They’re live deployments.
Oscar is allocating capital aggressively. It holds $69.5 million in Bitcoin ETFs and $30 million in USDC. That’s 5% of the balance sheet in crypto. The company says it will convert the stablecoin into Bitcoin later this year. CEO Mark Bertolini controls 75% of voting power through Class B shares. That locks in founder-led strategy. The board is aligned.
The ACA market is still expanding. Membership grew 63% year over year. Oscar holds 7% of the total ACA market share across 18 states. The company expects total ACA enrollment to hit 24 million by 2027. If enhanced subsidies are extended, that number could reach 31 million. Oscar’s targets do not rely on subsidy extensions. That’s upside, not baseline.
The company is guiding to a 5% operating margin by 2027. That implies $700 million in operating income. EPS growth is expected to run between 50% and 100% annually before settling into a 20% to 30% range post-2027. That’s why a 30PE is justified. This is not a slow-growth insurer. It’s a platform scaling into profitability.
Sources
https://distilinfo.com/healthplan/oscar-health-growth-ichra-ai-expansion/
https://finance.yahoo.com/news/oscar-health-inc-oscr-bull-132349530.html