Omada Health (NASDAQ:OMDA) Releases Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Key Points

• Omada Health beat quarterly expectations: The company reported EPS of $0.08 versus consensus of a $0.02 loss. Revenue rose 43% year over year to $88 million, while net income reached $5 million and adjusted EBITDA totaled $11 million.
• Growth momentum remains strong: Members increased 45% year over year to approximately 1.1 million, supported by expansion across diabetes, hypertension, GLP-1, prevention and weight-health programs. The company also cited new employer, PBM, retail and HCSC opportunities.
• Management raised 2026 guidance to $334 million-$340 million in revenue and $21 million-$27 million in adjusted EBITDA. CEO Sean Duffy is scheduled to become executive chair in January 2027, with President Wei-Li Shao succeeding him as CEO.

Omada Health (NASDAQ:OMDA - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $0.08 EPS for the quarter, beating analysts' consensus estimates of ($0.02) by $0.10, Zacks reports. Omada Health had a negative return on equity of 1.82% and a negative net margin of 2.22%.

Here are the key takeaways from Omada Health's conference call:

• Record Q2 performance: Revenue rose 43% year over year to $88 million, while GAAP gross margin expanded to 73%, net income reached $5 million, and adjusted EBITDA rose to $11 million.
• Omada ended the quarter with approximately 1.1 million members, up 45% year over year, supported by broad growth across diabetes, hypertension, GLP-1, prevention, and weight-health programs. Members also remained in active treatment nearly 10% longer, while cost of revenue per member declined more than 10%.
• Commercial momentum remains strong, including new employer wins, expanding PBM channels, a cholesterol launch with a major retailer, and an HCSC expansion covering an additional 1.5 million lives that is expected to begin contributing revenue in the first half of 2027.
• Management raised full-year 2026 guidance to $334 million-$340 million of revenue and $21 million-$27 million of adjusted EBITDA, citing Q2 strength and visibility into the second half.
• CEO and co-founder Sean Duffy will become Executive Chair on January 1, 2027, with President Wei-Li Shao succeeding him as CEO; management characterized the transition as planned and emphasized continuity, while noting that second-half revenue growth and EBITDA margins will moderate because of seasonality and ongoing investments.

Omada Health Price Performance

Shares of OMDA traded up $0.43 during trading hours on Thursday, reaching $19.54. 2,131,836 shares of the company's stock traded hands, compared to its average volume of 1,233,414. Omada Health has a twelve month low of $10.28 and a twelve month high of $26.92. The business's fifty day simple moving average is $20.21 and its two-hundred day simple moving average is $16.12. The firm has a market capitalization of $1.16 billion, a price-to-earnings ratio of -72.37 and a beta of 1.73.

Insider Activity at Omada Health

In related news, CEO Sean P. Duffy sold 25,886 shares of the firm's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $22.68, for a total transaction of $587,094.48. Following the transaction, the chief executive officer owned 411,861 shares in the company, valued at $9,341,007.48. This trade represents a 5.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Craig Gracey sold 6,894 shares of the stock in a transaction on Friday, June 12th. The shares were sold at an average price of $17.42, for a total value of $120,093.48. Following the transaction, the chief accounting officer directly owned 9,191 shares of the company's stock, valued at approximately $160,107.22. The trade was a 42.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 206,406 shares of company stock worth $4,191,483 in the last 90 days. Corporate insiders own 6.38% of the company's stock.

Institutional Investors Weigh In On Omada Health

Several hedge funds have recently modified their holdings of the stock. Quarry LP acquired a new position in Omada Health during the fourth quarter valued at $29,000. Raymond James Financial Inc. acquired a new stake in Omada Health during the 2nd quarter worth about $32,000. New York State Common Retirement Fund purchased a new position in Omada Health during the 4th quarter valued at about $73,000. JPMorgan Chase & Co. purchased a new position in Omada Health during the 3rd quarter valued at about $82,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in shares of Omada Health in the 3rd quarter valued at about $95,000.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on OMDA. Morgan Stanley reiterated an "overweight" rating and set a $30.00 target price on shares of Omada Health in a research note on Monday, June 22nd. Weiss Ratings downgraded shares of Omada Health from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Monday, July 13th. BTIG Research began coverage on shares of Omada Health in a research report on Friday, July 17th. They issued a "buy" rating and a $30.00 target price for the company. The Goldman Sachs Group restated a "buy" rating on shares of Omada Health in a research report on Friday, May 8th. Finally, Canaccord Genuity Group raised their target price on Omada Health from $24.00 to $28.00 and gave the company a "buy" rating in a research note on Tuesday, July 21st. Eleven research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $24.75.

About Omada Health

Omada Health is a digital health company that specializes in the prevention and management of chronic conditions through personalized, technology-driven programs. The company's platform combines data analytics, behavioral science and human coaching to support individuals at risk for or living with conditions such as prediabetes, type 2 diabetes, hypertension and musculoskeletal disorders. Participants access the program via a mobile app or web portal, where they receive tailored curriculum, feedback on health metrics and ongoing virtual coaching.

In addition to its core disease-management offerings, Omada Health has expanded its services to include mental health support and digital therapeutics for weight management.

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