Omada Health raises 2026 revenue outlook to $344M–$346M
For 2026, Omada lifted its revenue outlook to $344 million–$346 million and Adjusted EBITDA outlook to $32 million–$34 million.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Omada Health, Inc. reported third-quarter 2026 revenue of $91.306 million, up 34% year over year from $68.030 million, and total members reached 1.1 million, up 36%. Gross margin was 76%, versus 66%; non-GAAP gross margin was 78%, versus 68%. GAAP net income was $6.551 million, compared with a $3.178 million loss, while Adjusted EBITDA, a non-GAAP measure, was $12.379 million versus $2.383 million.
The company raised its 2026 revenue outlook to $344 million–$346 million from $334 million–$340 million, and its Adjusted EBITDA outlook to $32 million–$34 million from $21 million–$27 million. Average member tenure grew 10% year over year to approximately two years and four months; trailing 12-month revenue per Total Member was $294, up approximately 5%. For the nine months ended September 30, 2026, revenue was $257.189 million and net income was $8.875 million, compared with $184.364 million and a $17.937 million loss, respectively, in 2025. Cash and cash equivalents were $243.151 million as of September 30, 2026.
5 points · 1 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.2026 revenue outlook rose to $344 million–$346 million.
- Moderate pointRevenue reached $91.306 million, up 34% year over year.
- Moderate pointNet income was $6.551 million, versus a $3.178 million loss.
- Moderate pointAdjusted EBITDA was $12.379 million, compared with $2.383 million.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 Adjusted EBITDA outlook rose to $32 million–$34 million.
Negative
- None.
Filing Explained
In its third-quarter results, Omada Health reports 61,996 thousand common shares issued and outstanding at
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $91.306 million
Gross margin: 76%
GAAP net income: $6.551 million
+5 more
8 metrics
Revenue
$91.306 million
Three months ended September 30, 2026; up 34% year over year from $68.030 million
Gross margin
76%
Three months ended September 30, 2026; compared with 66% in 2025
GAAP net income
$6.551 million
Three months ended September 30, 2026; compared with a $3.178 million net loss in 2025
Adjusted EBITDA
$12.379 million
Three months ended September 30, 2026; compared with $2.383 million in 2025
Total Members
1.1 million
Third quarter 2026; increased 36% year over year
2026 revenue outlook
$344 million to $346 million
Raised from prior guidance of $334 million to $340 million
2026 Adjusted EBITDA outlook
$32 million to $34 million
Raised from prior guidance of $21 million to $27 million
Cash and cash equivalents
$243.151 million
As of September 30, 2026
Key Terms
Adjusted EBITDA, non-GAAP gross margin, free cash flow, Total Members
4 terms
Adjusted EBITDA financial
"Adjusted EBITDA as net income (loss) and comprehensive income (loss)"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
non-GAAP gross margin financial
"We define non-GAAP gross profit and non-GAAP gross margin"
Non-GAAP gross margin is a measure of a company's profitability that shows how much money it makes from sales after subtracting the direct costs of producing its products or services, but without applying certain accounting adjustments required by standard rules. It helps investors understand the company's core earning ability by excluding items like one-time expenses or accounting changes. This metric provides a clearer picture of ongoing business performance beyond official financial reports.
free cash flow financial
"Free cash flow is net cash provided by (used in) operating activities"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Total Members financial
"A member is a person who is enrolled in one of our virtual care programs"
Earnings Snapshot
Revenue: $91.306 million · Guidance included
Three months ended September 30, 2026
Revenue
$91.306 million
Up 34% year over year from $68.030 million
Gross margin
76%
Up from 66% in 2025
GAAP net income
$6.551 million
Compared with a $3.178 million net loss in 2025
Adjusted EBITDA
$12.379 million
Compared with $2.383 million in 2025
Guidance
For 2026, revenue of $344 million to $346 million, raised from $334 million to $340 million; Adjusted EBITDA of $32 million to $34 million, raised from $21 million to $27 million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did OMDA report in Q3 2026?
Omada reported $91.306 million in revenue for the three months ended September 30, 2026, up 34% year over year from $68.030 million.
What is OMDA's 2026 financial outlook?
Omada expects 2026 revenue of $344 million to $346 million and Adjusted EBITDA of $32 million to $34 million. The company raised these ranges from prior guidance of $334 million to $340 million for revenue and $21 million to $27 million for Adjusted EBITDA.
What was Omada's free cash flow for the first nine months of 2026?
Omada reported free cash flow of $2.459 million for the nine months ended September 30, 2026, compared with negative $7.613 million in 2025. It defines free cash flow as net cash provided by or used in operating activities less purchases of property and equipment and capitalized internal-use software costs.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||
(888 ) 987-8337
Registrant's telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company x
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
On November 5, 2026 , Omada Health, Inc. (the “Company”) issued a press release announcing its financial results for the three months ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information furnished pursuant to Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit Number | Exhibit Description | ||||
| 99.1 | Press Release, dated November 5, 2026. | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| OMADA HEALTH, INC. | |||||||||||||||||
Date: | By: | /s/ Sean Duffy | |||||||||||||||
| Sean Duffy Chief Executive Officer | |||||||||||||||||
 | ||
Omada Health Reports Third Quarter 2026 Results
•Quarterly Revenue of $91 million and All-Time High Total Members of 1.1 million
•Revenue Grew 34% and Total Members Increased 36% Year over Year
•Raises Full Year 2026 Financial Outlook
SAN FRANCISCO - November 5, 2026 - Omada Health, Inc. (Nasdaq: OMDA), the virtual between-visit healthcare provider, today reported financial results for the third quarter ended September 30, 2026.
Financial Highlights
•Revenue of $91 million, compared with total revenue of $68 million in Q3 2025
•Gross margin of 76% in the third quarter, up from 66% in Q3 2025
•Non-GAAP gross margin of 78% in the third quarter, up from 68% in Q3 2025
•Net income of $7 million in the third quarter, compared with a net loss of $3 million in Q3 2025
•Adjusted EBITDA of $12 million in the third quarter, compared with Adjusted EBITDA of $2 million in Q3 2025
•Trailing 12-month revenue per Total Member grew approximately 5% year over year to $294
•Cash and cash equivalents of $243 million
Please see the non-GAAP Financial Measures section below and reconciliations of GAAP to non-GAAP measures at the end of this press release.
Operational Highlights
•Total Members reached 1.1 million, increasing 36% year over year, reflecting continued demand across Omada Health's integrated cardiometabolic care platform and strong enrollment momentum across diabetes and hypertension programs.
•Average member tenure grew 10% year over year to approximately 2 years and 4 months, which is roughly an additional 2.5 months in program.
“Omada Health delivered its strongest quarter yet, with revenue growing 34% year over year, Total Members increasing 36% and a GAAP gross margin of 76%,” said Sean Duffy, co-founder and CEO of Omada Health. “Our diabetes and hypertension programs led that growth, and average tenure in our programs reached a record of roughly two years and four months. That gives members more time to build lasting habits and the confidence to manage their health.”
Financial Outlook
For the year ending December 31, 2026, Omada Health expects:
•Revenue in the range of $344 million to $346 million, up from prior guidance of $334 million to $340 million, with the midpoint representing approximately 33% growth compared with 2025.
•Adjusted EBITDA in the range of $32 million to $34 million, up from prior guidance of $21 million to $27 million, with the midpoint representing an improvement of approximately $27 million, or roughly five and a half times, compared with 2025.
We have not provided an outlook for net income (loss) (GAAP) or a reconciliation of expected Adjusted EBITDA to net income (loss) (GAAP) because net income (loss) (GAAP) on a forward-looking basis is not available without unreasonable effort due to the potential variability and complexity of the items that are excluded from Adjusted EBITDA, such as loss on debt extinguishment; provision for income taxes; depreciation and amortization; share-based compensation; change in fair value of warrant liabilities; amortization of intangible assets; and loss on disposal of property and equipment.
Conference Call
Omada Health will host a conference call at 1:30 p.m. PT/4:30 p.m. ET today, November 5, 2026, during which management will discuss third quarter 2026 results.
A live audio webcast of the call will be available online at https://investors.omadahealth.com. A replay will be available shortly after the conclusion of the call at the same link and will remain accessible for approximately 12 months.
Those participating via conference call can preregister using the following link:
https://register-conf.media-server.com/register/BIcb6fa0e5bd8d4b91a30bc5b4de7e5fb8
About Omada Health
Omada Health (Nasdaq: OMDA) is reverse engineering the way healthcare is delivered in America, putting the space between doctor visits–where health is won or lost–at the center of care. Today's healthcare system poorly serves chronic conditions that require ongoing support outside of the exam room, like obesity, diabetes, hypertension, cholesterol, and musculoskeletal conditions. Omada Health’s virtual-first model combines human-led care teams, connected devices, and AI-enabled technology to deliver personalized care at scale, including support for GLP-1 therapy. Omada Health has served more than two million members since launch across 2,000+ employers, health plans, pharmacy benefit managers, and health systems. Learn more at omadahealth.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “estimate,” “expect,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements contained in this press release include, but are not limited to, statements we make regarding our ability to deliver profitable growth, business trends, growth prospects and future financial and operating results, and our financial outlook.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the
future of our business, future plans and strategies, projections, anticipated events and trends, macroeconomic and industry conditions and other factors. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, but are not limited to, the following: our limited operating history and ability to manage our growth effectively; our history of net losses and ability to maintain profitability; the ability of our programs to achieve and maintain market acceptance; changes in the healthcare industry and competition; the growth and success of our customers and channel partners; the number of individuals covered by our programs and the number of our programs covered by our customers; the level of member engagement in our programs; our ability to maintain and grow customer and channel partner relationships; concentration of a substantial portion of our sales among a limited number of customers and channel partners; our ability to attract new customers and channel partners and increase member enrollment from existing and new customers and channel partners; our ability to increase the size of our organization; our dependence on a limited number of third-party suppliers; the impact of seasonality on our financial results; our ability to achieve widespread brand awareness and the impact of any negative media coverage; our ability to develop and release new programs and services; cybersecurity threats; our dependence on the interoperability of our programs and connected devices with third-party devices, operating systems and applications; economic uncertainties or downturns in the general economy or the industries in which we or our customers or channel partners operate; changes in laws or regulations or the implementation of existing laws and regulations; compliance with privacy and security laws and regulations; our and our affiliated professional entities’ compliance with healthcare regulatory laws; any modification in U.S. Food and Drug Administration enforcement policies; our dependence on our relationships with affiliated professional entities; and other risk factors identified in our filings with the Securities and Exchange Commission, including our Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, which is being filed at or around the date hereof.
All forward-looking statements in this press release are based only on information currently available to us and speak only as of the date on which they are made. We undertake no obligation to publicly update, revise, or correct any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise, except as required under applicable law.
Investor Relations Contact:
Craig Gracey
ir@omadahealth.com
Media Contact:
Rose Ramseth
press@omadahealth.com
| Omada Health, Inc. | ||
Consolidated Balance Sheets | ||
(in thousands, except per-share amounts) | ||
(unaudited) | ||
| September 30, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 243,151 | $ | 222,036 | |||||||
Accounts receivable, net (1) | 48,193 | 34,585 | |||||||||
| Inventory | 4,880 | 4,486 | |||||||||
| Deferred commissions, current | 3,951 | 3,539 | |||||||||
Prepaid expenses and other current assets (2) | 14,887 | 8,288 | |||||||||
| Total current assets | 315,062 | 272,934 | |||||||||
| Property and equipment, net | 9,738 | 7,942 | |||||||||
| Deferred commissions, non-current | 8,984 | 8,711 | |||||||||
| Intangible assets, net | 1,097 | 2,414 | |||||||||
| Goodwill | 13,240 | 13,240 | |||||||||
| Other assets | 417 | 165 | |||||||||
| Total assets | $ | 348,538 | $ | 305,406 | |||||||
| Liabilities and stockholders’ equity | |||||||||||
| Current liabilities | |||||||||||
Accounts payable (3) | $ | 8,385 | $ | 10,276 | |||||||
Accrued expenses and other current liabilities (4) | 41,159 | 40,392 | |||||||||
Deferred revenue (5) | 25,835 | 25,058 | |||||||||
| Total current liabilities | 75,379 | 75,726 | |||||||||
| Other liabilities, non-current | - | - | |||||||||
| Total liabilities | 75,379 | 75,726 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders’ equity | |||||||||||
Common stock, $0.001 par value per share; 750,000 and 750,000 shares authorized as of September 30, 2026 and December 31, 2025, respectively; 61,996 and 58,429 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively | 62 | 58 | |||||||||
| Additional paid-in capital | 720,966 | 686,366 | |||||||||
| Accumulated deficit | (447,869) | (456,744) | |||||||||
| Total stockholders’ equity | 273,159 | 229,680 | |||||||||
| Total liabilities and stockholders’ equity | $ | 348,538 | $ | 305,406 | |||||||
(1)Includes amounts from a related party of $29.0 million and $22.8 million as of September 30, 2026 and December 31, 2025, respectively.
(2)Includes amounts from a related party of $0.4 million and $0.3 million as of September 30, 2026 and December 31, 2025, respectively.
(3)Includes amounts from a related party of $1.1 million and $1.0 million as of September 30, 2026 and December 31, 2025, respectively.
(4)Includes amounts from a related party of $4.2 million and $4.9 million as of September 30, 2026 and December 31, 2025, respectively.
(5)Includes amounts from a related party of $19.2 million and $18.8 million as of September 30, 2026 and December 31, 2025, respectively.
| Omada Health, Inc. | ||
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | ||
(in thousands, except per-share data) | ||
(unaudited) | ||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
Services (1) | $ | 85,106 | $ | 62,936 | $ | 235,392 | $ | 169,392 | |||||||||||||||
Hardware (2) | 6,200 | 5,094 | 21,797 | 14,972 | |||||||||||||||||||
| Total revenue | 91,306 | 68,030 | 257,189 | 184,364 | |||||||||||||||||||
| Cost of revenue | |||||||||||||||||||||||
Services (3) | 13,174 | 12,654 | 41,232 | 38,071 | |||||||||||||||||||
| Hardware | 8,850 | 10,305 | 34,195 | 29,016 | |||||||||||||||||||
| Total cost of revenue | 22,024 | 22,959 | 75,427 | 67,087 | |||||||||||||||||||
| Gross profit | 69,282 | 45,071 | 181,762 | 117,277 | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
Research and development (4) | 15,271 | 10,301 | 42,593 | 29,131 | |||||||||||||||||||
Sales and marketing (5) | 29,107 | 22,943 | 85,782 | 65,431 | |||||||||||||||||||
General and administrative (6) | 20,084 | 14,340 | 49,799 | 37,968 | |||||||||||||||||||
| Total operating expenses | 64,462 | 47,584 | 178,174 | 132,530 | |||||||||||||||||||
| Operating income (loss) | 4,820 | (2,513) | 3,588 | (15,253) | |||||||||||||||||||
| Other income (expense), net | |||||||||||||||||||||||
| Interest expense | (262) | (353) | (294) | (2,521) | |||||||||||||||||||
| Interest income | 1,993 | 2,009 | 5,581 | 3,414 | |||||||||||||||||||
Loss on debt extinguishment | - | (2,109) | - | (2,109) | |||||||||||||||||||
| Change in fair value of warrant liabilities | - | (212) | - | (1,468) | |||||||||||||||||||
| Total other income (expense), net | 1,731 | (665) | 5,287 | (2,684) | |||||||||||||||||||
| Income (loss) before provision for income taxes | 6,551 | (3,178) | 8,875 | (17,937) | |||||||||||||||||||
| Provision for income taxes | - | - | - | - | |||||||||||||||||||
| Net income (loss) and comprehensive income (loss) | $ | 6,551 | $ | (3,178) | $ | 8,875 | $ | (17,937) | |||||||||||||||
| Net income (loss) per share | |||||||||||||||||||||||
| Basic | $ | 0.11 | $ | (0.06) | $ | 0.15 | $ | (0.61) | |||||||||||||||
| Diluted | $ | 0.10 | $ | (0.06) | $ | 0.14 | $ | (0.61) | |||||||||||||||
| Weighted-average shares outstanding | |||||||||||||||||||||||
| Basic | 61,499 | 57,658 | 60,045 | 29,421 | |||||||||||||||||||
| Diluted | 67,121 | 57,658 | 64,561 | 29,421 | |||||||||||||||||||
(1)Includes amounts from a related party of $53.7 million and $41.8 million for the three months ended September 30, 2026 and 2025, respectively and $151.1 million and $108.2 million for the nine months ended September 30, 2026 and 2025, respectively.
(2)Includes amounts from a related party of $4.0 million and $3.0 million for the three months ended September 30, 2026 and 2025, respectively and $13.9 million and $9.0 million for the nine months ended September 30, 2026 and 2025, respectively.
(3)Includes amounts from a related party of $1.4 million and $1.4 million for the three months ended September 30, 2026 and 2025, respectively and $4.1 million and $3.8 million for the nine months ended September 30, 2026 and 2025, respectively.
(4)Includes amounts from a related party of $0.9 million and $0.6 million for the three months ended September 30, 2026 and 2025, respectively and $2.4 million and $1.6 million for the nine months ended September 30, 2026 and 2025, respectively.
(5)Includes amounts from a related party of $8.7 million and $7.1 million for the three months ended September 30, 2026 and 2025, respectively and $25.6 million and $19.3 million for the nine months ended September 30, 2026 and 2025, respectively.
(6)Includes amounts from a related party of $0.4 million and $0.4 million for the three months ended September 30, 2026 and 2025, respectively and $1.4 million and $1.1 million for the nine months ended September 30, 2026 and 2025, respectively.
| Omada Health, Inc. | ||
Share-based Compensation Summary | ||
(in thousands) | ||
(unaudited) | ||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Services cost of revenue | $ | 121 | $ | 33 | $ | 284 | $ | 104 | |||||||||||||||
| Research and development | $ | 1,053 | 611 | $ | 2,784 | 1,634 | |||||||||||||||||
| Sales and marketing | $ | 2,058 | 1,049 | $ | 5,534 | 2,663 | |||||||||||||||||
| General and administrative | $ | 2,619 | 1,843 | $ | 7,089 | 4,809 | |||||||||||||||||
| Total share-based compensation expense | $ | 5,851 | $ | 3,536 | $ | 15,691 | $ | 9,210 | |||||||||||||||
| Omada Health, Inc. | ||
Consolidated Statements of Cash Flows | ||
(in thousands) | ||
(unaudited) | ||
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating activities | |||||||||||
| Net income (loss) | $ | 8,875 | $ | (17,937) | |||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||||||||||
| Depreciation and amortization | 4,770 | 4,044 | |||||||||
| Share-based compensation | 15,691 | 9,210 | |||||||||
Loss on debt extinguishment | - | 2,109 | |||||||||
| Loss on disposal of property and equipment | 54 | 2 | |||||||||
| Amortization of debt issuance costs | - | 285 | |||||||||
| Non-cash operating lease expense | - | 447 | |||||||||
| Change in fair value of warrant liabilities | - | 1,468 | |||||||||
Provision for credit losses (1) | 2,316 | 1,485 | |||||||||
| Amortization of deferred commissions | 2,898 | 2,467 | |||||||||
| Changes in operating assets and liabilities | |||||||||||
Accounts receivable (2) | (15,924) | (19,514) | |||||||||
| Inventory | (394) | 148 | |||||||||
Prepaid expenses and other current assets (3) | (6,599) | (1,570) | |||||||||
| Deferred commissions | (3,583) | (2,319) | |||||||||
| Other non-current assets | (252) | 181 | |||||||||
Accounts payable (4) | (2,083) | 1,373 | |||||||||
| Operating lease liabilities | - | (415) | |||||||||
Accrued expenses and other current liabilities (5) | 767 | 7,782 | |||||||||
Deferred revenue (6) | 777 | 7,627 | |||||||||
| Other non-current liabilities | - | - | |||||||||
Net cash provided by (used in) operating activities | 7,313 | (3,127) | |||||||||
| Investing activities | |||||||||||
| Purchases of property and equipment | (342) | (1,123) | |||||||||
| Capitalized internal-use software costs | (4,512) | (3,363) | |||||||||
| Net cash used in investing activities | (4,854) | (4,486) | |||||||||
| Financing activities | |||||||||||
| Proceeds from exercise of stock options | 19,984 | 5,993 | |||||||||
| Taxes paid related to net share settlement of equity awards | (1,328) | - | |||||||||
| Payment of deferred offering costs | - | (4,284) | |||||||||
| Repayment of debt principal | - | (30,963) | |||||||||
| Payment of debt extinguishment costs | - | (1,430) | |||||||||
| Proceeds from initial public offering, net of underwriting discounts and commissions | - | 160,532 | |||||||||
| Net cash provided by financing activities | 18,656 | 129,848 | |||||||||
Net increase in cash and cash equivalents | 21,115 | 122,235 | |||||||||
| Cash and cash equivalents at beginning of period | 222,036 | 76,392 | |||||||||
| Cash and cash equivalents at end of period | $ | 243,151 | $ | 198,627 | |||||||
(1)Includes changes in related party balances of $1.4 million and $0.5 million for the nine months ended September 30, 2026 and 2025, respectively.
(2)Includes changes in related party balances of $7.7 million and $15.6 million for the nine months ended September 30, 2026 and 2025, respectively.
(3)Includes changes in related party balances of less than $0.1 million and $0 for the nine months ended September 30, 2026 and 2025, respectively.
(4)Includes changes in related party balances of $0.1 million and $0 for the nine months ended September 30, 2026 and 2025, respectively.
(5)Includes changes in related party balances of $0.7 million and $3.0 million for the nine months ended September 30, 2026 and 2025, respectively.
(6)Includes changes in related party balances of $0.4 million and $7.1 million for the nine months ended September 30, 2026 and 2025, respectively.
Non-GAAP Financial Measures
We use certain financial measures not calculated in accordance with accounting principles generally accepted in the United States (“GAAP”) to supplement the financial information in our consolidated financial statements, which are presented in accordance with GAAP. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, adjusted EBITDA margin, and free cash flow.
We define non-GAAP gross profit and non-GAAP gross margin as gross profit and gross margin, excluding share-based compensation expense, amortization of intangible assets, and depreciation and amortization.
We define adjusted EBITDA as net income (loss) and comprehensive income (loss) reported on our consolidated statements of operations, excluding the impact of interest expense, interest income, change in fair value of warrant liabilities, loss on debt extinguishment, provision for income taxes, share-based compensation expense, amortization of intangible assets, depreciation and amortization, and loss on disposal of property and equipment.
Free cash flow is net cash provided by (used in) operating activities less purchases of property and equipment and capitalized internal-use software costs.
We believe these non-GAAP financial measures, when taken collectively with GAAP financial information, are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making. However, there are a number of limitations related to the use of non-GAAP financial measures. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP results.
Key Metric
Total Members: A member is a person who is enrolled in one of our virtual care programs and that generated a billing event in the preceding 12 months. We believe growth in the number of members is a key indicator of the performance of our business for both investors and management as we monitor the performance of our business, as members primarily drive services revenue. The number of members depends, in part, on our ability to successfully market our services to new customers and channel partners, our ability to sell additional programs to existing customers and channel partners, and our ability to promote awareness of our programs among covered individuals and to encourage their enrollment.
Reconciliation of GAAP to Non-GAAP Financial Measures
The following tables reconcile to the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below:
| Omada Health, Inc. | ||
Reconciliation of GAAP to Non-GAAP Financial Measures - Adjusted EBITDA | ||
(in thousands) | ||
(unaudited) | ||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||
| GAAP net income (loss) and comprehensive income (loss) | $ | 6,551 | $ | (3,178) | $ | 8,875 | $ | (17,937) | |||||||||||||||
| Add: | |||||||||||||||||||||||
| Interest expense | 262 | 353 | 294 | 2,521 | |||||||||||||||||||
| Interest income | (1,993) | (2,009) | (5,581) | (3,414) | |||||||||||||||||||
| Change in fair value of warrant liabilities | — | 212 | — | 1,468 | |||||||||||||||||||
| Loss on debt extinguishment | — | 2,109 | — | 2,109 | |||||||||||||||||||
| Provision for income taxes | — | — | — | — | |||||||||||||||||||
| Share-based compensation expense | 5,851 | 3,536 | 15,691 | 9,210 | |||||||||||||||||||
| Amortization of intangible assets | 439 | 439 | 1,317 | 1,411 | |||||||||||||||||||
Depreciation and amortization(1) | 1,242 | 920 | 3,453 | 2,633 | |||||||||||||||||||
| Loss on disposal of property and equipment | 27 | 1 | 54 | 3 | |||||||||||||||||||
| Adjusted EBITDA | $ | 12,379 | $ | 2,383 | $ | 24,103 | $ | (1,996) | |||||||||||||||
| GAAP net income (loss) and comprehensive income (loss) margin (as a percentage of revenue) | 7 | % | (5) | % | 3 | % | (10) | % | |||||||||||||||
| Adjusted EBITDA margin (as a percentage of revenue) | 14 | % | 4 | % | 9 | % | (1) | % | |||||||||||||||
(1) Depreciation and amortization includes depreciation of property and equipment and amortization of capitalized internal-use software costs
| Omada Health, Inc. | ||
Reconciliation of GAAP to Non-GAAP Financial Measures | ||
(in thousands) | ||
(unaudited) | ||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||
| GAAP gross profit | $ | 69,282 | $ | 45,071 | $ | 181,762 | $ | 117,277 | |||||||||||||||
| Add: | |||||||||||||||||||||||
| Share-based compensation expense | 121 | 33 | 284 | 104 | |||||||||||||||||||
| Amortization of intangible assets | 439 | 439 | 1,317 | 1,317 | |||||||||||||||||||
Depreciation and amortization(1) | 1,138 | 839 | 3,169 | 2,366 | |||||||||||||||||||
| Non-GAAP gross profit | 70,980 | 46,382 | 186,532 | 121,064 | |||||||||||||||||||
| GAAP gross margin (as a percentage of revenue) | 76 | % | 66 | % | 71 | % | 64 | % | |||||||||||||||
| Non-GAAP gross margin (as a percentage of revenue) | 78 | % | 68 | % | 73 | % | 66 | % | |||||||||||||||
(1) Depreciation and amortization includes depreciation of property and equipment and amortization of capitalized internal-use software costs
| GAAP Research and development expense | $ | 15,271 | $ | 10,301 | $ | 42,593 | $ | 29,131 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Share-based compensation expense | 1,053 | 611 | 2,784 | 1,634 | |||||||||||||||||||
Depreciation and amortization (1) | 38 | 23 | 103 | 61 | |||||||||||||||||||
| Non-GAAP research and development expense | $ | 14,180 | $ | 9,667 | $ | 39,706 | $ | 27,436 | |||||||||||||||
| Non-GAAP research and development expense (as a % of revenue) | 16 | % | 14 | % | 15 | % | 15 | % | |||||||||||||||
| GAAP Sales and marketing expense | $ | 29,107 | $ | 22,943 | $ | 85,782 | $ | 65,431 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Share-based compensation expense | 2,058 | 1,049 | 5,534 | 2,663 | |||||||||||||||||||
| Amortization of intangible assets | — | — | — | 94 | |||||||||||||||||||
Depreciation and amortization (1) | 40 | 31 | 112 | 87 | |||||||||||||||||||
| Non-GAAP sales and marketing expense | $ | 27,009 | $ | 21,863 | $ | 80,136 | $ | 62,587 | |||||||||||||||
| Non-GAAP sales and marketing expense (as a % of revenue) | 30 | % | 32 | % | 31 | % | 34 | % | |||||||||||||||
| GAAP General and administrative expense | $ | 20,084 | $ | 14,340 | $ | 49,799 | $ | 37,968 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Share-based compensation expense | 2,619 | 1,843 | 7,089 | 4,809 | |||||||||||||||||||
Depreciation and amortization (1) | 26 | 27 | 69 | 119 | |||||||||||||||||||
| Loss on disposal of property and equipment | 27 | 1 | 54 | 3 | |||||||||||||||||||
| Non-GAAP general and administrative expense | $ | 17,412 | $ | 12,469 | $ | 42,587 | $ | 33,037 | |||||||||||||||
| Non-GAAP general and administrative expense (as a % of revenue) | 19 | % | 18 | % | 17 | % | 18 | % | |||||||||||||||
| GAAP operating expenses | $ | 64,462 | $ | 47,584 | $ | 178,174 | $ | 132,530 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Share-based compensation expense | 5,730 | 3,503 | 15,407 | 9,106 | |||||||||||||||||||
| Amortization of intangible assets | — | — | — | 94 | |||||||||||||||||||
Depreciation and amortization(1) | 104 | 81 | 284 | 267 | |||||||||||||||||||
| Loss on disposal of property and equipment | 27 | 1 | 54 | 3 | |||||||||||||||||||
| Non-GAAP operating expenses | $ | 58,601 | $ | 43,999 | $ | 162,429 | $ | 123,060 | |||||||||||||||
| GAAP operating expenses margin (as a percentage of revenue) | 71 | % | 70 | % | 69 | % | 72 | % | |||||||||||||||
| Non-GAAP operating expenses margin (as a percentage of revenue) | 64 | % | 65 | % | 63 | % | 67 | % | |||||||||||||||
(1) Depreciation and amortization includes depreciation of property and equipment and amortization of capitalized internal-use software costs
| Omada Health, Inc. | |||||||||||
| Reconciliation of GAAP Net Cash Provided by (Used in) Operating Activities to Free Cash Flow | |||||||||||
| (in thousands) | |||||||||||
| (unaudited) | |||||||||||
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
Net cash provided by (used in) operating activities | $ | 7,313 | $ | (3,127) | |||||||
| Purchases of property and equipment | (342) | (1,123) | |||||||||
| Capitalized internal-use software costs | (4,512) | (3,363) | |||||||||
| Free Cash Flow | $ | 2,459 | $ | (7,613) | |||||||
| Other cash flow components: | |||||||||||
| Net cash used in investing activities | $ | (4,854) | $ | (4,486) | |||||||
| Net cash provided by financing activities | $ | 18,656 | $ | 129,848 | |||||||