Oscar Health, Inc.OSCR

Oscar Health, Inc. Fair Value Disclosure

10-KFiled Feb 13, 20262 min read
FAIR VALUE MEASUREMENTS
Fair value represents the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. The Company's financial assets and liabilities measured at fair value on a recurring basis are categorized into a three-level fair value hierarchy based on the priority of the inputs used in the fair value valuation technique.

The levels of the fair value hierarchy are as follows:

•Level 1: Inputs utilize quoted (unadjusted) prices in active markets for identical assets or liabilities.
•Level 2: Inputs utilize quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; or model-derived valuations in which all significant inputs are observable in active markets.
•Level 3: Inputs utilized are unobservable but significant to the fair value measurement for the asset or liability. The unobservable inputs are used to measure fair value to the extent relevant observable inputs are not available. The unobservable inputs typically reflect management’s own estimates about the assumptions a market participant would use in pricing the asset or liability.
The following tables summarize fair value measurements by level for assets and liabilities measured at fair value on a recurring basis:
December 31, 2025
(in thousands)
Level 1
Level 2
Level 3
Total
Assets
Cash equivalents$49,552 $— $— $49,552 
Investments
U.S. treasury and agency securities
$— $2,090,980 $— $2,090,980 
Corporate notes
— 560,414 — 560,414 
Asset-backed securities
33,645 33,645 
Restricted investments
U.S. treasury securities— 2,979 — 2,979 
Total assets
$49,552 $2,688,018 $— $2,737,570 

December 31, 2024
(in thousands)
Level 1
Level 2
Level 3
Total
Assets
Cash equivalents$95,331 $— $— $95,331 
Investments
U.S. treasury and agency securities
$— $1,944,362 $— $1,944,362 
Corporate notes
— 463,808 — 463,808 
Certificates for deposit
— 29,136 — 29,136 
Restricted investments
U.S. treasury securities— 6,946 — 6,946 
Total assets
$95,331 $2,444,252 $— $2,539,583 

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 20, 2025
2023Feb 15, 2024
2022Feb 24, 2023
2021Feb 25, 2022

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

Income TaxesRevenueEarnings Per SharePP&ELeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance