Omada Health

Q2 revenue was $88 million, up 43% year over year and up 13% sequentially. GAAP gross margin was 73%, versus 66% in Q2 of last year; non-GAAP gross margin was 74%, versus 68% last year. Net income was $5 million, compared with a GAAP net loss of about $5 million a year ago; adjusted EBITDA was $11 million, also about $11 million better year over year. Total members ended the quarter at approximately 1.1 million, up 45% year over year. Cash and cash equivalents were approximately $222 million, and the company had no debt. Full-year 2026 revenue guidance was raised to $334 million-$340 million from $322 million-$330 million, and adjusted EBITDA guidance was raised to $21 million-$27 million from $14 million-$20 million.

Sean Duffy framed the quarter as a milestone for Omada, calling it the strongest quarter in company history and emphasizing record revenue, member growth, and gross margin. He said the company is in its strongest position since founding, with more than 2 million lifetime members served, top PBM relationships, and a proven profitable model. He also used the call to announce the leadership transition, saying Wei-Li Shao will take over as CEO on January 1, 2027 while he becomes Executive Chair focused on long-term strategy and partnerships.

Steve Cook said Q2 was the strongest second quarter in Omada’s history, with revenue of $88 million, GAAP gross margin of 73%, non-GAAP gross margin of 74%, net income of $5 million, and adjusted EBITDA of $11 million. He noted operating leverage improved meaningfully, with GAAP operating expenses falling to 69% of revenue from 73% and non-GAAP operating expenses to 62% from 68%. He also cited a strong balance sheet with about $222 million in cash and no debt, and explained that the raised full-year guide reflects both Q2 strength and a more measured second-half growth cadence tied to seasonality and contracted visibility.

Analysts focused on AI-driven efficiency, PBM channel traction, the broader demand picture beyond GLP-1s, and whether second-half guidance implies slower growth. Management said AI is helping support care teams, improve member experience, and lower cost to serve by over 10% per member, while also aiding operating leverage. On the growth mix, they stressed that diabetes and hypertension were the fastest-growing books, GLP-1s are acting as an entry point to broader cardiometabolic selling, and the pipeline is diversified across products and channels. They also said HCSC’s fully insured expansion should begin contributing revenue in H1 next year, and that cholesterol is seeing meaningful uptake from an existing customer and more pipeline activity.