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    OMDA
    Earnings call· Jun 2026(Q2 FY26)

    Omada Health Q2 FY26 earnings call OMDA

    Aug 6, 2026 Source

    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

    2
    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

    3
    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%
    		————

    Operational metrics

    19
    Revenue Growth
    43%YoY
    Q2 FY26

    Driven by continued strength across GLP-1 care track, increased multi-condition penetration, and enrollment effectiveness.

    Revenue Growth
    13%sequentially from Q1
    Q2 FY26

    Driven by continued strength across GLP-1 care track, increased multi-condition penetration, and enrollment effectiveness.

    GAAP Gross Margin
    73%up from 66% in Q2 FY25
    Q2 FY26

    Reflects lower cost to serve members, driven by lower care team delivery cost and reinforced by deeper multi-condition engagement and maturation of longer tenure cohorts.

    Non-GAAP Gross Margin
    74%up from 68% in Q2 FY25
    Q2 FY26

    Reflects lower cost to serve members, driven by lower care team delivery cost and reinforced by deeper multi-condition engagement and maturation of longer tenure cohorts.

    GAAP Net Income
    $5 millionvs loss of $5 million in Q2 FY25
    Q2 FY26

    Second quarter of GAAP Net Income Profitability following Q4 2025.

    Adjusted EBITDA
    $11 millionvs loss of approximately $0 million in Q2 FY25
    Q2 FY26

    Quarterly record for Omada, representing an improvement of approximately $11 million year over year.

    Cash and Cash Equivalents
    $222 million
    End Q2 FY26

    Strong balance sheet contributing to strength and profitability profile.

    GAAP Operating Expenses as % of Revenue
    69%down from 73% in Q2 FY25
    Q2 FY26

    Reflects scaling through channel partnerships, more from existing sales force, tight spending discipline, and AI leverage.

    Non-GAAP Operating Expenses as % of Revenue
    62%down from 68% in Q2 FY25
    Q2 FY26

    Reflects scaling through channel partnerships, more from existing sales force, tight spending discipline, and AI leverage.

    Cost to Serve per Member
    declined over 10%YoY
    Trailing 12-month basis

    Driven by increased efficiency in delivering both digital and human care, including rising capacity per care team member and AI/ML tooling.

    Total Members
    1.1 millionup 45% YoY
    End Q2 FY26

    Reflects enrollment effectiveness and broad-based growth across programs.

    Revenue per Total Member
    $284vs $279 in Q2 FY25
    Trailing 12-month basis, Q2 FY26

    Evaluates unit economics of the member base, showing consistency and durability of per member economics.

    Incremental Adjusted EBITDA Margin
    41%
    Q2 FY26

    Demonstrates ability to invest in growth at increasing rates of return and is the operational engine behind margin expansion.

    Estimated Eligible Covered Lives
    25 million
    As of December 2025

    Base from which Omada is building for 2027.

    HCSC Covered Lives Expansion
    1.5 million
    Launching 2027

    Expansion with a long-standing partner, where programs are embedded at the benefit level, allowing direct member enrollment.

    Member Engagement (Active Treatment Duration)
    nearly 10% longerthan a year ago
    Q2 FY26

    Driven by growth in GLP-1, diabetes, and hypertension programs, which typically have longer engagement. Reflects more billable months per member and higher lifetime value.

    Email Campaign Conversion
    approximately 20% higherYoY
    Q2 FY26

    Leading indicator of enrollment efforts, reflecting improvements in targeting, personalization, and messaging.

    New Hires
    roughly 50
    Q1 FY26

    Front-loaded investments in Q1, annualizing at full run rate in Q2 and beyond, impacting H2 operating expenses.

    Prior Year Revenue Growth
    54%
    H2 2025

    Strong prior-year growth rate that 2026 is comping off, contributing to expected moderation in H2 2026 growth.

    Industry KPIs

    4
    MetricValueDetails
    Utilization trendsnearly 10% longer%
    Pharmacy scripts specialty~150,000members
    Membership covered lives by line1.1 million (total members); 25 million (estimated eligible covered lives); 1.5 million (HCSC expansion)members; lives; lives
    Adjusted EPS EBITDA leverage guidance$11 million (Q2 FY26); $21 million - $27 million (FY26 guidance)USD

    Product announcements

    2
    ProductTypeDetails
    Cholesterol Care Tracklaunch
    GLP-1 Prescribing Programlaunch

    Deals & partnerships

    3
    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 ChannelsContinued 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 ProgramPartnership 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

    3
    Seasonality of GrowthH2 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 IncreaseH2 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 Uncertainty2027 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

    5

    HCSC Expansion Revenue Contribution

    H1 FY27
    Current1.5 million covered lives launching in 2027
    TargetRevenue 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.

    Q&A highlights

    6

    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 read7 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    07

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.