Omada Health Q1 Earnings Call Highlights

Key Points

• Omada delivered a "milestone quarter" with revenue of $78 million (up 42% YoY), positive adjusted EBITDA of $1 million, a narrower GAAP net loss, and raised full‑year guidance to $322–330M in revenue and $14–20M in adjusted EBITDA.
• The company expanded its GLP‑1 commercial footprint by joining Optum Rx’s Weight Engage, securing relationships with the three largest PBMs, and joining Eli Lilly’s Employer Connect to offer prescribing, GLP‑1 Care Track, and employer contribution options.
• Membership surpassed 1,025,000 (up 51% YoY) with improved enrollment effectiveness—Omada‑led outreach yields about two‑to‑three times higher conversion—and multi‑condition attach rates remain at 40–50%.

Omada Health NASDAQ: OMDA reported what executives described as a “milestone quarter” for the first quarter of 2026, highlighting 42% year-over-year revenue growth, expanding margins, and positive adjusted EBITDA alongside a raised full-year outlook.

On the earnings call, Co-Founder and CEO Sean Duffy said the quarter showed progress across Omada’s four key growth levers: expanding reach, increasing enrollment, deepening engagement, and driving operational efficiency. “Q1 2026 was a milestone quarter for Omada,” Duffy said, citing “42% revenue growth with a lower net loss and positive adjusted EBITDA, with a higher gross margin and a guidance raise.”

Commercial reach expands with PBM and employer-focused GLP-1 offerings

Much of the discussion centered on Omada’s growing footprint in GLP-1-related services and how those offerings are being positioned across employer benefit designs and channel partners.

Duffy said Omada joined Optum Rx’s Weight Engage portfolio, calling it Omada’s “first offering of prescribing capabilities within a PBM channel.” He added that Omada now has relationships with “the nation’s leading pharmacy benefits managers,” which he said serve most commercially insured lives and process 80% of prescription claims.

President Wei-Li Shao said Omada now has relationships with all three of the nation’s largest PBMs and described the Optum Rx relationship as a way to pair GLP-1 prescribing with Omada’s GLP-1 Care Track and expand adoption of Omada’s broader cardiometabolic and musculoskeletal (MSK) programs. On a question about exclusivity, Shao noted there were “two others that were preexisting inside the Weight Engage Optum Rx program,” making Omada “the third edition there.”

Omada also announced it is joining Eli Lilly and Company’s Employer Connect as an independent program administrator. Shao explained that the Employer Connect option is a carve-out outside the PBM and, if an employer selects Omada, includes three components: Omada’s “scaled offering” of GLP-1 prescribing paired with GLP-1 Care Track, access to a “net transparent cost” for Zepbound through Lilly’s program, and an employer-defined contribution option to reduce employee out-of-pocket costs.

In response to analysts, Shao said employer interest in GLP-1 solutions is “spread fairly evenly across the spectrum,” including employers using PBM or health plan benefit designs and those that have not yet offered coverage but are evaluating options such as defined contributions. Duffy summarized Omada’s approach as offering versions of its GLP-1 solution to match “whatever version of your strategy sits in.”

Membership surpasses 1 million as enrollment and multi-condition attach remain key themes

Omada reported crossing 1 million total members for the first time. Shao said the company ended Q1 with 1,025,000 total members, up 51% year-over-year, with 139,000 net new members in the quarter versus 107,000 in Q1 2025.

Shao said growth was “broad-based across the cardiometabolic suite,” including “strong year-over-year growth” in hypertension and diabetes programs. He attributed gains to enrollment enhancements that improved conversion across outreach channels, as well as continued transition of accounts to Omada-led outreach. Shao said Omada-led outreach generates enrollment rates “higher than non-Omada-led accounts,” and later added that when Omada leads enrollment “you get about two to three times better yield rate.” He told Wells Fargo that Omada-led outreach is “the majority” of the client base, though not yet 100%.

Multi-condition selling remained a focus. Shao said multi-condition close or attach rates continue to run between 40% and 50%, consistent with prior commentary.

On customers, Shao said the company added several “large, nationally recognized private employers” in the quarter, including L.L.Bean, QuikTrip, and Breakthru Beverage, in addition to public sector and regional health system wins.

Engagement features and AI tools show early usage lifts

Executives pointed to continued product development and AI-related capabilities in both the member experience and care delivery operations. Duffy referenced Omada’s AI-powered food and behavioral platform, including OmadaSpark and Meal Map, as part of efforts to deepen engagement.

Asked about customer and user feedback on AI-related features, Shao said Omada has seen “heartening data” and cited one metric: with Meal Map, Omada has seen “nearly a 16% relative lift in the weekly active meal tracking among new members.” He also described the company’s nutrition education tool as being fine-tuned over “3 million foods,” with context on a member’s clinical status and dietary preferences.

On operational efficiency, Duffy described AI use cases that include summarizing member data and surfacing next actions for care team review to reduce administrative burden, along with AI-assisted development improving product velocity. CFO Steve Cook later added AI as a third driver of margin expansion, alongside multi-condition mix and labor optimization.

Revenue grows 42%, margins expand, and guidance is raised

Cook said Q1 was Omada’s strongest first quarter on members, revenue, gross margin, and adjusted EBITDA. Revenue was $78 million, up 42% year-over-year, driven by GLP-1 Care Track adoption, increased multi-condition penetration, and enrollment effectiveness. Cook also noted that Q4 2025 included approximately $2 million of revenue from a one-time transaction that did not recur; excluding that item, Q1 revenue grew 6% sequentially from Q4.

Gross margin improved year-over-year. GAAP gross profit was $49 million, with GAAP gross margin of 62% (up from 58% a year ago). On a non-GAAP basis, gross margin was 64% (up from 60%). Cook noted Q1 has historically been Omada’s lowest gross margin quarter due to higher enrollment volume and related care team and device costs.

Cook also flagged a “minor impact” from the conflict in Iran, which he said modestly increased device-related cost of revenue due to higher shipping costs. He said it was not material to Q1 and estimated the full-year impact at roughly $1 million.

Profitability improved meaningfully. GAAP net loss narrowed to $3 million from $9 million in Q1 2025, while adjusted EBITDA was $1 million, improving $5 million year-over-year. Cook said delivering positive adjusted EBITDA in the company’s “historically highest cost quarter” reflected the scalability of the model.

Omada ended the quarter with $212 million in cash and cash equivalents and no debt, with Cook noting the company fully repaid its term loan ahead of schedule in 2025.

For full-year 2026, Omada raised guidance to:

• Revenue: $322 million to $330 million (from $312 million to $322 million)
• Adjusted EBITDA: $14 million to $20 million (from $7 million to $15 million)

Cook said the raise reflects continued commercial momentum across channel and PBM partnerships and sustained enrollment effectiveness across the cardiometabolic suite. He added that several new programs and relationships are “still in the early stages of commercial ramp” and are not expected to contribute materially to 2026 revenue, with more meaningful contribution expected as selling season progresses for 2027.

Looking ahead, Cook said the company expects to hold relatively flat revenue per member for the rest of the year in line with Q1, while noting potential upside tied to prescribing opportunities and engagement initiatives that could “uplift ARPU” later in 2026 or into 2027. He also said Omada plans to hold an Investor Day in September in New York, where it may revisit its long-term gross margin target of 70% and “potentially lift it.”

In closing remarks, Duffy said Omada plans to roll out “more new offerings than in any year in the history of our company” and pointed to expanded reach, an “expanding multi-condition platform,” and its evidence base as key pillars for growth.

About Omada Health NASDAQ: OMDA

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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