Omada Health — Q3 2026 Earnings Summary

Financial Performance:

• Revenue for the quarter ended September 30, 2026, was $91 million, representing a 34% year-over-year increase from $68 million in Q3 2025.
• Net income for the quarter was $7 million, a turnaround from a net loss of $3 million in Q3 2025.
• Adjusted EBITDA for the quarter was $12 million, up from $2 million in Q3 2025.
• GAAP gross margin improved to 76% in Q3 2026 from 66% in Q3 2025.
• Non-GAAP gross margin was 78% in Q3 2026, up from 68% in Q3 2025.
• Trailing 12-month revenue per Total Member grew approximately 5% year-over-year to $294.
• Cash and cash equivalents stood at $243 million as of September 30, 2026.
• For the nine months ended September 30, 2026, total revenue was $257.2 million compared to $184.4 million in the prior year period.
• Net income for the nine months ended September 30, 2026, was $8.9 million, compared to a net loss of $17.9 million in the same period last year.
• Free cash flow for the nine months ended September 30, 2026, was $2.5 million, compared to negative $7.6 million in the prior year period.

Guidance and Future Outlook:

• Omada Health raised its full-year 2026 revenue guidance to a range of $344 million to $346 million, up from the prior range of $334 million to $340 million.
• The new revenue midpoint represents approximately 33% growth compared to 2025.
• Adjusted EBITDA guidance for the full year 2026 was raised to a range of $32 million to $34 million, up from the prior range of $21 million to $27 million.
• The new Adjusted EBITDA midpoint represents an improvement of approximately $27 million, or roughly five and a half times, compared to 2025.
• The company did not provide forward-looking guidance for GAAP net income (loss) or a reconciliation of expected Adjusted EBITDA to net income (loss) due to the variability and complexity of excluded items.

Business Segments and Product Lines:

• Total Members reached 1.1 million, an increase of 36% year-over-year.
• Average member tenure grew 10% year-over-year to approximately 2 years and 4 months.
• Diabetes and hypertension programs led the growth in revenue and member enrollment.
• Revenue is derived from Services ($85.1 million in Q3 2026) and Hardware ($6.2 million in Q3 2026).
• The company serves more than two million members since launch across 2,000+ employers, health plans, pharmacy benefit managers, and health systems.
• The platform includes support for GLP-1 therapy.

Market and Competitive Landscape:

• The press release highlights continued demand across the integrated cardiometabolic care platform and strong enrollment momentum.
• Omada Health operates in the virtual between-visit healthcare space, addressing chronic conditions such as obesity, diabetes, hypertension, cholesterol, and musculoskeletal conditions.
• The company notes that the current healthcare system poorly serves chronic conditions requiring ongoing support outside the exam room.

Risks and Challenges:

• Forward-looking statements are subject to risks including limited operating history, history of net losses, and the ability to maintain profitability.
• Risks include the ability to achieve and maintain market acceptance, changes in the healthcare industry and competition, and the growth and success of customers and channel partners.
• Potential risks involve concentration of sales among a limited number of customers, dependence on third-party suppliers, and cybersecurity threats.
• Regulatory risks include compliance with privacy, security, and healthcare regulatory laws, as well as FDA enforcement policies.
• Economic uncertainties, seasonality, and the impact of negative media coverage are also cited as potential risks.

Management Commentary and Tone:

• Sean Duffy, co-founder and CEO, described the quarter as the company's "strongest quarter yet."
• Management highlighted that the record average tenure of roughly two years and four months gives members more time to build lasting habits and confidence.
• The tone reflects confidence in the integrated cardiometabolic care platform and the ability to deliver profitable growth.

Other Key Points:

• Omada Health will host a conference call on November 5, 2026, at 1:30 p.m. PT/4:30 p.m. ET to discuss the results.
• The company has 61,996 shares issued and outstanding as of September 30, 2026.
• Total stockholders' equity increased to $273.2 million as of September 30, 2026, from $229.7 million as of December 31, 2025.
• Accounts receivable, net increased to $48.2 million as of September 30, 2026, from $34.6 million as of December 31, 2025.
• Deferred revenue was $25.8 million as of September 30, 2026, compared to $25.1 million as of December 31, 2025.
• Related party transactions included $29.0 million in accounts receivable and $19.2 million in deferred revenue as of September 30, 2026.