Omada Health (OMDA) Financials

Omada Health’s recent financial results show a meaningful improvement in growth, margins and profitability. Revenue increased from $41.2 million in Q2 2024 to $61.4 million in Q2 2025 and $87.8 million in Q2 2026. That represents year-over-year growth of approximately 43% in the latest quarter. Gross profit increased to $63.8 million, while gross margin expanded to roughly 72.6%, up from approximately 65.7% in Q2 2025 and 60.2% in Q2 2024.

The company also reached positive operating income in Q2 2026. Operating income was $3.5 million, compared with losses of $4.3 million in Q2 2025 and $10.0 million in Q2 2024. Net income was $5.3 million, or $0.08 per diluted share, versus a $5.3 million net loss in Q2 2025. However, Q1 2026 still produced a $3.0 million net loss, so investors will want to see whether the latest profit is sustainable.

Cash generation improved but remains uneven. Omada produced $4.0 million of operating cash flow in Q2 2026, following an $11.8 million outflow in Q1. The company ended the quarter with $221.7 million of cash and equivalents, total liabilities of $75.5 million and no noncurrent debt reported. This provides financial flexibility, although the balance sheet still reflects accumulated retained losses of $454.4 million.

• Strong revenue momentum: Q2 revenue grew approximately 43% year over year and has increased substantially from the comparable quarter in 2024.
• Improving gross margins: Gross margin reached approximately 72.6% in Q2 2026, indicating that revenue is scaling faster than the cost of revenue.
• Operating profitability achieved: Omada generated $3.5 million of operating income in Q2 2026 after reporting operating losses in the prior-year comparable quarter and Q1 2026.
• Return to net profitability: Q2 net income was $5.3 million, compared with losses in Q1 2026 and each provided comparable quarter from 2025 and 2024.
• Debt-free balance sheet: The company reported $221.7 million in cash and no noncurrent debt at June 30, 2026, limiting interest-rate and refinancing risk.
• Improved liquidity: Cash represented a substantial portion of current assets, while total current liabilities were $75.5 million versus current assets of $294.9 million.
• Operating cash flow is volatile: Q2 operating cash flow was positive at $4.0 million, but Q1 produced an $11.8 million outflow. Continued positive cash generation would provide better confirmation of the earnings improvement.
• Financing supported cash growth: Net cash increased $9.9 million in Q2, helped by $7.6 million of financing inflows. The data does not specify the precise nature of those financing activities, so investors should review the underlying filing.
• Accounts receivable increased: Accounts receivable rose to $56.6 million from $40.0 million in Q1 2026 and $33.3 million in Q2 2025. This may reflect growth, but it also increases the importance of collections and working-capital management.
• Profitability remains unproven over time: Despite the latest quarterly profit, the company continues to carry substantial accumulated retained losses and reported a net loss as recently as Q1 2026.

Overall, the statements point to a company moving toward profitability, supported by rapid revenue growth and expanding gross margins. The key risks for investors are the inconsistency of operating cash flow, rising receivables and the need to demonstrate that Q2’s positive earnings can continue without relying on financing-related cash inflows.