Omada Health (OMDA) Earnings Date & Reports

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 (generally accepted accounting principles) 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 (earnings before interest, taxes, depreciation, and amortization) 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.
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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 (glucagon-like peptide-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.

Reported Results

For the third quarter ended September 30, 2026, Omada Health 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).

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Market Reaction and Investor Sentiment

Sentiment heading into the report was constructive, with Omada Health 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.

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