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Omada Health (OMDA) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Aug 6, 2026

Source: earnings call transcript

Executive summary

Omada Health Q2 FY26 — Record Performance and Leadership Transition

Omada Health reported a record-setting Q2 FY26, driven by strong revenue growth, significant margin expansion, and increased member engagement across its cardiometabolic programs. The company announced a planned CEO transition, with President Wei-Li Hsiao succeeding co-founder Sean Duffy in January 2027, signaling a focus on leveraging GLP-1s, AI, and expanded commercial reach to drive future growth. Management raised full-year guidance, anticipating continued profitability despite expected seasonal moderation in the second half.

Highlights

5

  • Record revenue of $88 million, up 43% year-over-year.

  • GAAP gross margin expanded by 700 basis points to 73%.

  • Adjusted EBITDA reached a record $11 million, an $11 million improvement year-over-year.

  • Total members grew to 1.1 million, up 45% year-over-year.

  • Full-year revenue guidance raised to $334 million - $340 million and adjusted EBITDA guidance raised to $21 million - $27 million.

Concerns

2

  • Year-over-year growth rate expected to moderate in H2 FY26 due to strong prior-year comps and seasonality.

  • Operating expenses expected to hold flat or tick up slightly in H2 FY26 due to Q1 hiring annualizing.

Guidance & targets

CategoryTargetConfidence
Full-year 2026 Revenue
$334 million to $340 million
high materiality
High
Full-year 2026 Adjusted EBITDA
$21 million to $27 million
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Cardiometabolic Suite (Company-wide)
Broad-based growth across the cardiometabolic suite, reinforcing momentum beyond a single program. Increased multi-condition penetration and enrollment effectiveness drove revenue.
Total members: 1.1 millionTotal members growth YoY: 45%Trailing 12-month revenue per total member: $284Trailing 12-month revenue per total member (Q2 FY25): $279
$88 million43%13%—
Diabetes and Hypertension Programs
Revenue growth continued to meaningfully outpace prevention and weight health programs, reflecting a healthy shift in mix toward higher-value programs. These are highest-priced products with longest member duration, contributing significantly to economic benefits.
—overriding the 50 percent——
GLP-1 Suite
Continued strength in the GLP-1 care track. Acting as an initial conversation starter to sell across the entire product suite. The prescribing program launched with its first closed customer for 2027.
GLP-1 members: ~150,000GLP-1 members as % of total: ~13.6%
————

Product announcements

ProductTypeDetails
Cholesterol Care Tracklaunch
GLP-1 Prescribing Programlaunch

Deals & partnerships

Healthcare Services Corporation (HCSC) Expansion of existing prevention and hypertension programs into HCSC's fully insured book of business in three additional states.

HCSC is one of the largest Blues Plans in the country and a long-standing partner. The fully insured component is embedded at the benefit level, allowing members to enroll directly without a downstream employer sales cycle, building a channel dynamic for scale.

PBM Channels Continued progress with newer PBM channels, including one in its second year tracking ahead of expectations and another in early stages with encouraging signs, which is also the first partner to include Omada's prescribing program.

Omada has built a strong playbook for working with top PBMs, focusing on partnering with their sales teams and leveraging strong product-market fit for cardiometabolic and GLP-1 programs. This leads to channel diversification and a healthy pipeline.

Lilly Employer Enterprise Connect Program Partnership to appeal to employers who care about providing clinical support for employees paying cash for GLP-1s through direct channels.

Part of Omada's GLP-1 FlexCare offering, addressing the needs of employers regardless of their GLP-1 coverage decisions.

Risks & headwinds

Seasonality of Growth H2 FY26

Year-over-year growth rate expected to moderate

Mitigation:Management expects first half enrollments to continue generating revenue at healthy per member economics to sustain a strong margin profile through the rest of 2026.

Operating Expense Increase H2 FY26

Operating expenses expected to hold flat if not tick up slightly

Mitigation:This is due to Q1 hires (approximately 50 people) annualizing at full run rate. Management views this as part of normal business cadence, setting up for a strong start to 2027 and driving ROI on investments.

GLP-1 Coverage Uncertainty 2027 benefit year

Employers are evaluating what they're going to cover and what they're not going to cover

Mitigation:Omada is well-positioned with product-market fit for both covering and non-covering employers, offering prescribing + wraparound support, GLP-1 FlexCare, and other cardiometabolic programs. This hedges against coverage decisions.

What to watch in Q3 FY26

HCSC Expansion Revenue Contribution

H1 FY27
Current 1.5 million covered lives launching in 2027
Target Revenue hitting the books

Why it matters

This expansion represents a significant increase in covered lives through a fully insured channel, which is expected to provide faster revenue return and contribute to scale.

We're working busily with HCSE to set that up and have that deployed. should see revenue start hitting the books throughout H1 of next year and obviously ongoing from that point in time.

Find out whether OMDA delivers this. Inve re-checks your case every morning.

Q&A highlights

Can you elaborate on AI efficiencies, how they flow through, and if they shape headcount decisions as the business scales?

AI continues to be a source of leverage, driving efficiencies in supporting care teams and member experience. This includes smarter tooling for coaches, better prediction of member demand, and standardized workflows. The results are visible in a >10% decline in cost of revenue per member and members staying active 10% longer.

“AI, as we've shared in prior calls, it continues to be a source of leverage, an important driver, and this is both how we support our care teams and the member experience as well, ranging from smarter tooling to our coaches, better prediction of members member demand, more standardized ways of working across our member facing teams.”

asked by Craig Hettenbach, Morgan Stanley · answered by Unknown Speaker

2 min read 7 chapters

Detailed narrative

Leadership Transition and Strategic Vision

Omada Health announced a planned leadership transition, with co-founder and CEO Sean Duffy moving to Executive Chair on January 1, 2027. President Wei-Li Hsiao will succeed him as CEO, bringing a focus on leveraging three powerful forces: commercial reach for clinical care, GLP-1s and adjacent therapies, and AI's role in personalized care delivery at scale. The transition is positioned to accelerate Omada's mission to bend the curve of chronic disease.

Record Q2 Performance and Profitability

The company reported its strongest quarter ever, achieving record revenue of $88 million, a 43% year-over-year increase, and GAAP gross margin of 73%, expanding by 700 basis points. Adjusted EBITDA reached a record $11 million, an $11 million improvement year-over-year. This marks Omada's second quarter of GAAP net income profitability, demonstrating the structural profitability of its model at scale.

Operational Momentum and Member Growth

Omada saw strong momentum across its programs, with total members reaching 1.1 million, a 45% year-over-year increase. Growth was broad-based across the cardiometabolic suite, with diabetes and hypertension programs significantly outpacing overall revenue growth. This shift towards higher-value programs contributes to longer member engagement and higher lifetime value.

Commercial Expansion and PBM Channel Progress

Commercial progress in Q2 included adding new customers across diverse industries and deepening existing relationships. A significant expansion with Healthcare Services Corporation (HCSC) will reach an additional 1.5 million covered lives launching in 2027. Progress in newer PBM channels, including the first partner for a prescribing program, is tracking ahead of expectations, contributing to a strong pipeline for the second half of the year.

Product Innovation and Market Fit

Omada launched cholesterol as a standalone care track with a large retailer, showing encouraging early engagement. The first closed prescribing customer for GLP-1s, launching in 2027, signals market fit for this program. The company emphasizes its comprehensive cardiometabolic offering, which addresses major cost drivers for employers and positions Omada as a deep and broad solution in the market.

Efficiency Gains and AI Leverage

The cost to serve members declined over 10% year-over-year on a trailing 12-month basis, driven by increased efficiency in digital and human care delivery. This includes rising capacity per care team member and the application of AI and machine learning for smarter tooling, better demand prediction, and standardized workflows. Non-GAAP operating expenses decreased from 68% to 62% of revenue, demonstrating significant operating leverage.

Seasonality and Outlook for H2 FY26

While Q2 was exceptionally strong, management expects a more measured growth trajectory in the second half of FY26 due to historical seasonality, with Q1 typically being the strongest new enrollment period. The company made significant front-loaded investments in Q1, hiring approximately 50 people, which will annualize and cause operating expenses to hold flat or tick up slightly in H2, impacting the EBITDA margin profile.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.