Omada Health NASDAQ: OMDA reported record second-quarter results for 2026, citing broad-based growth across its cardiometabolic programs, expanding channel partnerships and lower costs to serve members. The company also announced that President Wei-Li Shao will succeed Co-founder and Chief Executive Officer Sean Duffy as CEO on Jan. 1, 2027.
Duffy, who founded Omada more than 15 years ago, will become executive chair and remain part of the management team. In that role, he said he will focus on long-term strategy, partnerships and opportunities intended to create value over time.
“We just reported our strongest quarter ever,” Duffy said, pointing to record membership, revenue and gross margin. He said Omada has served more than 2 million lifetime members and has commercial relationships with the nation’s three largest pharmacy benefit managers, or PBMs.
Quarterly Results and Raised Outlook
Chief Financial Officer Steve Cook said second-quarter revenue reached a record $88 million, up 43% from the prior-year period and 13% sequentially. The company reported GAAP net income of more than $5 million, compared with a roughly $5 million loss a year earlier, and adjusted EBITDA of approximately $11 million, also a quarterly record.
The quarter marked Omada’s second period of GAAP net-income profitability following the fourth quarter of 2025, Cook said. The company ended the quarter with approximately $222 million in cash and cash equivalents and no debt.
- GAAP gross margin was 73%, up from 66% a year earlier.
- Non-GAAP gross margin was 74%, compared with 68% in the prior-year quarter.
- GAAP operating expenses declined to 69% of revenue from 73% a year earlier.
- Non-GAAP operating expenses fell to 62% of revenue from 68%.
- Total members reached approximately 1.1 million, up 45% year over year.
Omada raised its full-year 2026 revenue outlook to $334 million to $340 million from prior guidance of $322 million to $330 million. It also increased adjusted EBITDA guidance to $21 million to $27 million, compared with its earlier forecast of $14 million to $20 million.
Cook said the company expects growth to moderate in the second half because of its typical enrollment seasonality and difficult comparisons with the second half of 2025, when revenue grew 54% as Omada ramped with a large channel partner. The company expects first-half enrollments to continue generating revenue through the balance of 2026.
Growth Across Programs and Channels
Shao said revenue growth in Omada’s Diabetes and Hypertension programs outpaced the company’s overall 43% revenue growth rate. He described those offerings as higher-value programs, while Cook said both programs grew more than 50% year over year during the second quarter.
Omada also cited continued momentum in its GLP-1 Care Track, multi-condition cardiometabolic programs and a newly launched standalone cholesterol care track. The cholesterol program launched with one of the country’s largest retailers, which Shao described as an existing Omada customer. He said the early enrollment activity provides an encouraging indication of demand, and that the company has both expansion and new-customer cholesterol opportunities in its pipeline.
During the quarter, Omada added customers in food service, national retail, public-sector education and industrial employment. The company said its commercial sales cycle is typically weighted toward building new relationships in the first half of the year and closing them in the second half, with benefit launches occurring in January.
The company also expanded its relationship with Health Care Service Corporation, or HCSC. Omada extended its Prevention and Hypertension programs into HCSC’s fully insured business in three additional states, representing an additional 1.5 million covered lives scheduled to launch in 2027. Shao said the embedded-benefit model allows eligible members to enroll directly without a downstream employer sales cycle, and Omada expects revenue from the expansion to begin during the first half of 2027.
Omada said it had more than 25 million estimated eligible covered lives as of December 2025. Its PBM channels also continued to develop, with one second-year channel building a customer pipeline ahead of expectations, according to Shao. A newer PBM relationship, which includes Omada’s prescribing program, remains in the early stages of its sales effort.
Enrollment, Engagement and Efficiency
The company said email campaigns, its primary enrollment channel, converted approximately 20% better year over year. Omada attributed that improvement to targeting, personalization and messaging enhancements.
Members also remained in active treatment nearly 10% longer than they did a year earlier, driven by growth in GLP-1, Diabetes and Hypertension programs, where members typically stay engaged longer. Cook said trailing 12-month revenue per total member was $284 in the second quarter, compared with $279 a year earlier.
Omada defines a total member as a person enrolled in one of its virtual-care programs who generated a billing event during the preceding 12 months. The company primarily bills based on care activity rather than a flat subscription, Cook said.
Cost of revenue per member declined more than 10% year over year on a trailing 12-month basis. Management attributed the improvement to efficiencies in both digital and human care delivery, including greater care-team capacity, AI and machine-learning tools for coaches, demand forecasting and standardized workflows.
Duffy said AI has also supported the member experience through products such as Meal Map and Omada Spark. Cook said the company is evaluating AI tools across its operations and expects the technology to support operating leverage into 2027 and beyond.
Leadership Transition and Product Roadmap
Shao, who joined Omada seven years ago as chief commercial officer and has served as president for more than four years, said his focus as CEO will be to translate commercial reach, GLP-1 therapies and AI-driven personalization into health outcomes for more members.
Management said the company’s GLP-1 offerings are intended to address employers that cover GLP-1 drugs as well as those that do not. Shao said Omada’s prescribing and wraparound support services can help employers seeking clinical support for members using GLP-1s, including those obtaining drugs through direct-to-consumer and cash-pay channels.
As of the fourth quarter of 2025, Omada had 150,000 members in its GLP-1 program out of 887,000 total members. Cook said that ratio has remained roughly constant through the second quarter, reflecting broad-based growth across the company’s product portfolio.
Omada plans to provide an updated long-term financial framework, including its growth, gross-margin and operating-leverage outlook, at its Investor Day on Sept. 10.
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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
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