Omada Health, Inc.

What they do

Omada Health provides virtual, between-visit care programs for conditions such as prediabetes, diabetes, hypertension, high cholesterol, and musculoskeletal issues. The company's model combines human-led 'Care Teams' (health coaches, specialists, and physical therapists) with a proprietary 'Care Team Platform' and connected devices. Programs are sold directly to employers, health plans, health systems, and PBMs, and also through channel partners that resell its offerings. As of June 30, 2026, Omada had approximately 1,091,000 total members enrolled in one or more programs.

Revenue drivers

• Cardiometabolic Programs — Core offerings for prediabetes, diabetes, hypertension, high cholesterol, and GLP-1 support; account for the majority of revenue, driven by member enrollment and per-member fees.
• Prevention & Weight Health (Omada for Prevention & Weight Health) — First program, targeting prediabetes and weight management; a major growth driver, expanded to new covered lives (e.g., HCSC across Illinois, Oklahoma, New Mexico).
• Other Programs (MSK Physical Therapy, GLP-1 Prescribing) — Musculoskeletal program and GLP-1 prescribing capability (with third-party providers) add revenue streams; GLP-1 prescribing closed its first customer expected to yield revenue in 2027.
• Channel Partners (PBMs, Health Plans) — Reseller partnerships (e.g., PBMs, health plans) provide significant revenue; expansion within existing channel partners to new lines of business is a growth lever.

Recent performance

Q2 2026 revenue was $88 million (press release), up 43% year-over-year from $61 million in Q2 2025. Net income was $5 million in Q2 2026, versus a net loss of $5 million in Q2 2025; adjusted EBITDA was $11 million, versus a loss of $0.2 million. Gross margin rose to 73% (GAAP) and 74% (non-GAAP) in Q2 2026, from 66% and 68% in Q2 2025. Total members increased 45% year-over-year, and trailing twelve-month revenue per total member grew ~2% to $284. Cash and cash equivalents were $222 million at June 30, 2026.

Strategy

Management focuses on expanding multi-condition platform and deepening relationships with existing customers and channel partners. Recent initiatives include launching cholesterol management offering (first deployment July 2026 with a large retailer) and expanding into new lines of business such as Medicare Advantage. The company also leverages PBM and health plan channels to broaden covered lives; a key example is the HCSC expansion reaching an additional 1.5 million covered lives. Leadership transition planned: Wei-Li Shao becomes CEO January 1, 2027, with Sean Duffy becoming Executive Chair.

Risks

• History of net losses and limited operating history — The company has incurred net losses historically (e.g., net losses of $67.5M, $47.1M, and $12.8M in 2023-2025) and may not consistently maintain profitability.
• Concentration of revenue with limited customers/channel partners — A significant portion of sales comes from a limited number of employers, health plans, PBMs, and channel partners; loss of a key partner could materially impact revenue.
• Market is new, evolving, and competitive — The virtual care market is rapidly evolving and increasingly competitive, making forecasting demand difficult and pressuring margins.
• Channel partner dependence — Channel partners act as resellers; if an end customer stops working with a channel partner, that customer may discontinue Omada's programs, limiting ability to retain revenue.

Outlook

Management expects continued growth driven by expansion across cardiometabolic programs and new offerings like cholesterol management. The company has provided early evidence of market demand for its GLP-1 prescribing program, with first customer closed and revenue expected in 2027. Future priorities include disciplined execution, broadening capabilities, and deepening customer relationships to further scale the business.