Oscar Health, Inc. (OSCR): A Bull Case Theory

We came across a bullish thesis on Oscar Health, Inc. on Next’s Substack by Next 100 Baggers. In this article, we will summarize the bulls’ thesis on OSCR. Oscar Health, Inc.’s share was trading at $14.38 as of July 11^th. OSCR’s trailing and forward P/E were 35.95 and 20.16 respectively according to Yahoo Finance.

Oscar Health, Inc. (OSCR) is a tech-first health insurer aiming to disrupt the U.S. healthcare system through a consumer-centric model, proprietary tech stack, and virtual care integration. Co-founded by Josh Kushner—whose venture firm Thrive Capital has backed OpenAI and Stripe—Oscar is one of the few insurtechs to show real financial progress.

The company now serves over 2 million members in the ACA individual and family plan market, where it holds top-3 share in key states. After years of deep losses, Oscar has turned a corner, delivering consecutive EPS beats and reaching GAAP profitability in 2024. It reported $0.92 EPS in Q1 2025 amid a 42% revenue jump, driven by member growth and improved operating leverage.

The company’s low SG&A ratio (15.8%), high app ratings, and strong engagement metrics position it as a differentiated operator, though customer service complaints and narrow networks remain reputational risks. Despite retrenching from Medicare Advantage and some geographies to improve margins, Oscar’s +Oscar B2B tech platform and potential expansion via ICHRA could unlock long-term growth beyond ACA.

The firm is capital-rich ($2.26B cash) and low-leverage (Debt/Equity 0.27), reducing blow-up risk. With a projected 45% EPS CAGR, Oscar trades at a forward P/E of 24, an EV/FCF of just 2x, and a PEG below 0.6, making it cheap on cash flow and revenue while premium on earnings. Strong insider alignment—Kushner controls 24% via Thrive—adds credibility to its turnaround. If Oscar sustains margin expansion and navigates regulatory risk, it could be one of the rare insurtechs to scale profitably.

Previously we covered a bullish thesis on Oscar Health, Inc. by Next 100 Baggers in July 2025, which highlighted the company’s turnaround to GAAP profitability, strong ACA market share, and compelling PEG valuation. The company’s stock price has appreciated approximately by 1.62% since our coverage. This is because early signs of margin expansion continued. The thesis still stands as TAM optionality and tech leverage remain underappreciated. Next 100 Baggers shares an identical view but emphasizes on Oscar’s scalability beyond ACA via ICHRA.

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Disclosure: None.