GET DAILY SIGNALSOmada Health (OMDA) Delivers 34% Revenue Growth in Q3 with Profit Turnaround
Key Takeaways
- Third quarter 2026 revenue reached $91.3 million, up 34% year over year and above consensus estimates near $86–87 million.
- Omada swung to a GAAP net profit of $7.0 million, or $0.10 per diluted share, versus a net loss of $0.06 per share a year earlier.
- Adjusted EBITDA climbed to a quarterly record of $12 million, up from $2 million in the prior-year period.
- Total members reached a record 1.13 million, up 36% year over year, led by strong diabetes and hypertension program enrollment.
- Management raised full-year 2026 revenue guidance to $344–$346 million and adjusted EBITDA guidance to $32–$34 million.
Earnings Context and Why It Matters
Omada Health, a virtual between-visit healthcare provider, has spent the past year convincing investors that its human-led, technology-enabled care model can scale profitably. After going public in June 2025, the company has delivered consistent revenue acceleration and consecutive quarterly beats. The third quarter is a particularly important checkpoint because it reflects continued member growth, margin expansion, and the durability of its cardiometabolic and GLP-1 care programs. With the broader digital health sector still proving out unit economics, Omada's ability to convert revenue growth into actual net income makes this report a key signal for both growth and profitability-focused investors. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
For the third quarter ended September 30, 2026, OMDA reported total revenue of $91.3 million, a 34% increase from $68.0 million in the same period a year earlier and above the roughly $86–87 million consensus estimate. Services revenue of $85.1 million grew faster than hardware revenue of $6.2 million, supporting a favorable mix shift.
The company generated GAAP net income of $7.0 million, a swing from a $3.0 million net loss in the prior-year quarter. GAAP diluted EPS came in at $0.10, compared with a loss of $0.06 per share a year ago and ahead of estimates. On an adjusted basis, EPS of approximately $0.17 exceeded the consensus estimate of $0.09.
Profitability improved sharply across the board. Adjusted EBITDA reached a record $12 million, up from $2 million a year earlier, representing an adjusted EBITDA margin of roughly 14%. Gross margin expanded to 76% on a GAAP basis (78% non-GAAP), up from 66% a year ago, driven by lower cost to serve members and maturing member cohorts.
Operating metrics also strengthened. Total members rose 36% year over year to a record 1.13 million, with average member tenure reaching roughly two years and four months. Trailing twelve-month revenue per total member grew about 5% to $294. The company ended the quarter with $243.2 million in cash and no debt.
Reflecting this momentum, management raised full-year 2026 revenue guidance to $344–$346 million (from $334–$340 million) and lifted adjusted EBITDA guidance to $32–$34 million (from $21–$27 million).
Market Reaction and Investor Sentiment
Sentiment heading into the report was constructive, with OMDA having beaten EPS estimates in four consecutive quarters and with shares up roughly 23% year to date, outpacing the broader market. The combination of a top- and bottom-line beat, a record adjusted EBITDA, and raised full-year guidance reinforced the bullish narrative that Omada is transitioning from a growth story to a sustainably profitable one.
Key risk factors that investors weighed include the company's reliance on related-party services revenue, negative gross contribution from its hardware segment, and management's expectation that new enrollments will moderate sequentially in the fourth quarter due to normal seasonal patterns. Despite these considerations, the scale of the margin improvement and the upward guidance revision positioned the report as a clear positive for the company's profitability trajectory.
Forward Outlook and Key Factors to Monitor
Following this earnings event, investors should focus on several forward-looking signals. First, guidance implies a sequential moderation in fourth-quarter revenue below the third-quarter level, reflecting historical holiday-season enrollment softness. Watching whether actual enrollments and engagement hold up relative to this outlook will be important.
Second, margin sustainability remains a central theme. Omada has flagged higher research and development spending in the fourth quarter as it adds staff for platform development and ramps care-team staffing ahead of the 2027 benefit launch. Whether adjusted EBITDA can continue expanding alongside those investments will be closely watched.
Third, member retention and tenure are emerging as durable competitive advantages. With retention improving to 58% and average tenure at a record, the ability to extend member lifetime value and grow revenue per member will shape long-term economics. Finally, broader industry dynamics around GLP-1 therapies and employer health-plan budgets will influence demand for Omada's cardiometabolic and weight-management programs in the quarters ahead.
Using Tickeron’s AI Tools for Deeper Analysis
In my own research process, I often turn to Tickeron’s AI Screener when evaluating names like this one. It lets me quickly filter for similar companies based on revenue growth, profitability metrics, and technical patterns, helping me put the quarter’s results in broader context without spending hours on manual screens. The tool’s customizable filters for fundamentals and AI-driven signals have become a regular part of how I assess digital health stocks and spot comparable opportunities.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
OMDA's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for OMDA turned positive on November 03, 2026. Looking at past instances where OMDA's MACD turned positive, the stock continued to rise in 10 of 10 cases over the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +8.85% 3-day Advance, the price is estimated to grow further. Considering data from situations where OMDA advanced for three days, in 74 of 89 cases, the price rose further within the following month. The odds of a continued upward trend are 83%.
OMDA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 12 of 17 cases where OMDA's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 71%.
The Momentum Indicator moved below the 0 level on November 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on OMDA as a result. In 14 of 20 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 70%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where OMDA declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 74%.
The Aroon Indicator for OMDA entered a downward trend on October 15, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 59 (best 1 - 100 worst), indicating fairly steady price growth. OMDA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 72 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.590) is normal, around the industry mean (4.886). P/E Ratio (28.284) is within average values for comparable stocks, (13.782). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.133). Dividend Yield (0.000) settles around the average of (0.011) among similar stocks. P/S Ratio (3.908) is also within normal values, averaging (6.065).
The Tickeron PE Growth Rating for this company is 72 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 89 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. OMDA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 96, placing this stock worse than average.
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