Omada Health (NASDAQ: OMDA) posts 42% Q1 revenue jump, raises 2026 outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Omada Health reported strong first-quarter 2026 growth with improving profitability metrics. Revenue reached $78.0 million for the three months ended March 31, 2026, up 42% year over year, while Total Members grew to 1.02 million, a 51% increase, highlighting expanding adoption of its virtual cardiometabolic care platform.
GAAP gross margin improved to 62%, and non-GAAP gross margin to 64%. Net loss narrowed to $3.0 million from $9.4 million a year earlier, and adjusted EBITDA turned positive at $0.9 million versus a $4.2 million loss. Omada ended the quarter with $211.8 million of cash and cash equivalents and raised its full-year 2026 revenue and adjusted EBITDA outlook.
Positive
- Strong top-line growth and member expansion: Q1 2026 revenue rose 42% year over year to $78.0 million, while Total Members grew 51% to 1.02 million, demonstrating rapid scaling of Omada’s virtual care platform.
- Profitability metrics improving meaningfully: GAAP gross margin increased from 58% to 62% and non-GAAP gross margin from 60% to 64%, with net loss shrinking from $9.4 million to $3.0 million and adjusted EBITDA turning positive at $0.9 million.
- Raised full-year 2026 outlook: Revenue guidance increased to $322–$330 million and adjusted EBITDA to $14–$20 million, with midpoints implying 25% revenue growth versus 2025 and a near three-fold increase in adjusted EBITDA, signaling improved expectations.
- Solid liquidity position: Cash and cash equivalents of $211.8 million at March 31, 2026 provide substantial financial flexibility alongside improving earnings metrics.
Negative
- None.
Insights
Q1 shows rapid growth, margin expansion, and raised 2026 guidance.
Omada Health delivered Q1 2026 revenue of $78.0M, up 42% year over year, with Total Members rising 51% to 1.02 million. This scale helps support its virtual, multi-condition cardiometabolic platform economics.
GAAP gross margin increased to 62% from 58%, and non-GAAP gross margin to 64% from 60%, while GAAP net loss narrowed to $3.0M from $9.4M. Adjusted EBITDA swung to a $0.9M profit from a $4.2M loss, indicating improving operating leverage.
Cash and cash equivalents were $211.8M at March 31, 2026, providing a substantial liquidity cushion. For full-year 2026, the company now expects revenue of $322M–$330M and adjusted EBITDA of $14M–$20M, increasing both ranges versus prior guidance.
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, and exhibit attachments filed with this report.
Key Figures
Q1 2026 revenue: $78.0M
Total Members: 1.02 million
GAAP net loss: $2.97M
+5 more
8 metrics
Q1 2026 revenue
$78.0M
Three months ended March 31, 2026; up 42% year over year
Total Members
1.02 million
End of Q1 2026; 51% year-over-year growth
GAAP net loss
$2.97M
Q1 2026 net loss versus $9.45M in Q1 2025
Adjusted EBITDA
$0.94M
Q1 2026 adjusted EBITDA versus $(4.22)M in Q1 2025
GAAP gross margin
62%
Q1 2026, up from 58% in Q1 2025
Non-GAAP gross margin
64%
Q1 2026, up from 60% in Q1 2025
Cash and cash equivalents
$211.8M
Balance as of March 31, 2026
2026 revenue outlook
$322M–$330M
Full-year 2026 guidance range; midpoint 25% growth vs. 2025
Key Terms
Adjusted EBITDA, non-GAAP gross margin, free cash flow, Total Members, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA of $1 million in the first quarter, compared with an adjusted EBITDA loss of $4 million in Q1 2025"
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
"Non-GAAP gross margin of 64% in the first quarter, up from 60% in Q1 2025"
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 | $ | (13,391) | | | $ | (17,367)"
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
"Total Members: 1.02 million Total Members at the end of Q1, up 51% year over year"
Earnings Snapshot
Revenue: $78.0M · Guidance included
Q1 2026
Revenue
$78.0M
+42% YoY
GAAP net loss
$2.97M
improved from $9.45M prior-year
Adjusted EBITDA
$0.94M
vs $(4.22)M prior-year
GAAP gross margin
62%
from 58% prior-year
Non-GAAP gross margin
64%
from 60% prior-year
Guidance
For 2026, Omada expects revenue of $322M–$330M and adjusted EBITDA of $14M–$20M, increasing both ranges from prior guidance and implying 25% revenue growth at the midpoint versus 2025.
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:
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 May 7, 2026, Omada Health, Inc. ("Omada") issued a press release announcing its financial results for the three months ended March 31, 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.
| Ex. Number | Ex. Description | ||||
| 99.1 | Press Release | ||||
| 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 First Quarter 2026 Results
Revenue up 42% Year over Year; Total Members Surpass One Million;
Expanded Channels Now Include All Three of the Nation’s Leading PBMs
SAN FRANCISCO - May 7, 2026 - Omada Health, Inc. (Nasdaq: OMDA), the virtual between-visit healthcare provider, today reported financial results for the first quarter ended March 31, 2026.
Recent Highlights
•Total Members: 1.02 million Total Members at the end of Q1, up 51% year over year, reinforcing Omada’s role as an integrated, multi-condition cardiometabolic platform operating at scale.
•Revenue: $78 million in the first quarter, up 42% year over year.
•Omada joined Optum Rx’s Weight Engage portfolio to help employers expand responsible, clinically supported access to GLP‑1 and other anti‑obesity medications through their existing pharmacy benefit manager (PBM). This offering meaningfully increases access to GLP-1s by giving employers a way to provide medication management alongside the clinical and lifestyle support members need to succeed. It helps organizations already covering GLP‑1s strengthen their approach and offers others a responsible, clinically guided path to begin coverage of GLP-1s. Omada now has relationships with the nation’s three leading PBMs, who serve most commercially insured lives and processed 80% of prescription claims in 2025.
•Omada announced a new clinical analysis showing that members in the GLP-1 Care Track lost on average 1.8 times the total weight and more than two times the percentage of body fat compared to a control group over a 12-week period, while preserving lean muscle mass.
Today, Omada announced that it will serve as an independent program administrator in Eli Lilly and Company’s Employer Connect program. Omada’s GLP‑1 Care Track and prescribing capabilities will be available on the direct-to-employer platform—adding another way to pair GLP‑1 access with coordinated, virtual lifestyle support before, during, and after medication.
“Surpassing one million Total Members is a milestone that reflects the durable growth and operating leverage we’ve built over 15 years of earning trust with many of the nation’s leading employers, health plans, and PBMs,” said Sean Duffy, co-founder and CEO of Omada Health. “We’re proud to now have relationships with all three of the nation’s leading PBMs — including our newest collaboration with Optum Rx — giving us broad ability to meet employers wherever they are on their GLP-1 and cardiometabolic journey, and a platform we believe positions us to successfully meet our market opportunity in the years ahead.”
Other First Quarter 2026 Financial Highlights
•Gross margin of 62% in the first quarter, up from 58% in Q1 2025
•Non-GAAP gross margin of 64% in the first quarter, up from 60% in Q1 2025
•Net loss of $3 million in the first quarter, compared with a net loss of $9 million in Q1 2025
•Adjusted EBITDA of $1 million in the first quarter, compared with an adjusted EBITDA loss of $4 million in Q1 2025
•Cash and cash equivalents of $212 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.
Financial Outlook
For the year ending December 31, 2026, Omada expects:
•Revenue in the range of $322 million to $330 million, with the midpoint representing 25% growth compared with 2025; this range is up from the prior range of $312 million to $322 million
•Adjusted EBITDA in the range of $14 million to $20 million, with the midpoint representing a nearly three-fold increase compared with 2025; this range is up from the prior range of $7 million to $15 million
We have not provided an outlook for net loss (GAAP) or a reconciliation of expected adjusted EBITDA to net loss (GAAP) because net 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, May 7, 2026, during which management will discuss first 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 pre-register using the following link:
https://register-conf.media-server.com/register/BI854bc0e1054e4e9cabe5018d564013fe.
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’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 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 GLP-1 leadership, our new prescribing offerings and the benefits of those offerings, ability to deliver measurable results, 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; 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 (the “SEC”), including our Quarterly Report on Form 10-Q for the quarter ended March 31, 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 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) | ||
| March 31, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 211,765 | $ | 222,036 | |||||||
Accounts receivable, net (1) | 39,985 | 34,585 | |||||||||
| Inventory | 3,831 | 4,486 | |||||||||
| Deferred commissions, current | 4,019 | 3,539 | |||||||||
Prepaid expenses and other current assets (2) | 9,827 | 8,288 | |||||||||
| Total current assets | 269,427 | 272,934 | |||||||||
| Property and equipment, net | 8,455 | 7,942 | |||||||||
| Deferred commissions, non-current | 9,475 | 8,711 | |||||||||
| Intangible assets, net | 1,975 | 2,414 | |||||||||
| Goodwill | 13,240 | 13,240 | |||||||||
| Other assets | 226 | 165 | |||||||||
| Total assets | $ | 302,798 | $ | 305,406 | |||||||
| Liabilities and stockholders’ equity | |||||||||||
| Current liabilities | |||||||||||
Accounts payable (3) | $ | 8,100 | $ | 10,276 | |||||||
Accrued expenses and other current liabilities (4) | 31,227 | 40,392 | |||||||||
Deferred revenue (5) | 29,353 | 25,058 | |||||||||
| Total current liabilities | 68,680 | 75,726 | |||||||||
| Other liabilities, non-current | - | - | |||||||||
| Total liabilities | 68,680 | 75,726 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders’ equity | |||||||||||
Common stock, $0.001 par value per share; 750,000 and 750,000 shares authorized as of March 31, 2026 and December 31, 2025, respectively; 59,240 and 58,429 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively | 59 | 58 | |||||||||
| Additional paid-in capital | 693,773 | 686,366 | |||||||||
| Accumulated deficit | (459,714) | (456,744) | |||||||||
| Total stockholders’ equity | 234,118 | 229,680 | |||||||||
| Total liabilities and stockholders’ equity | $ | 302,798 | $ | 305,406 | |||||||
(1)Includes amounts from a related party of $25.8 million and $22.8 million as of March 31, 2026 and December 31, 2025, respectively.
(2)Includes amounts from a related party of $0.5 million and $0.3 million as of March 31, 2026 and December 31, 2025, respectively.
(3)Includes amounts from a related party of $0 and $1.0 million as of March 31, 2026 and December 31, 2025, respectively.
(4)Includes amounts from a related party of $6.9 million and $4.9 million as of March 31, 2026 and December 31, 2025, respectively.
(5)Includes amounts from a related party of $22.2 million and $18.8 million as of March 31, 2026 and December 31, 2025, respectively.
| Omada Health, Inc. | ||
Condensed Consolidated Statements of Operations and Comprehensive Loss | ||
(in thousands, except per-share data) | ||
(unaudited) | ||
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenue | |||||||||||
Services (1) | $ | 69,594 | $ | 49,496 | |||||||
Hardware (2) | 8,454 | 5,467 | |||||||||
| Total revenue | 78,048 | 54,963 | |||||||||
| Cost of revenue | |||||||||||
Services (3) | 14,449 | 12,744 | |||||||||
| Hardware | 14,906 | 10,319 | |||||||||
| Total cost of revenue | 29,355 | 23,063 | |||||||||
| Gross profit | 48,693 | 31,900 | |||||||||
| Operating expenses | |||||||||||
Research and development (4) | 12,697 | 8,806 | |||||||||
Sales and marketing (5) | 26,787 | 20,170 | |||||||||
General and administrative (6) | 13,990 | 11,320 | |||||||||
| Total operating expenses | 53,474 | 40,296 | |||||||||
| Operating loss | (4,781) | (8,396) | |||||||||
| Other income (expense), net | |||||||||||
| Interest expense | (18) | (1,074) | |||||||||
| Interest income | 1,829 | 542 | |||||||||
| Change in fair value of warrant liabilities | - | (520) | |||||||||
| Total other income (expense), net | 1,811 | (1,052) | |||||||||
| Loss before provision for income taxes | (2,970) | (9,448) | |||||||||
| Provision for income taxes | - | - | |||||||||
| Net loss and comprehensive loss | $ | (2,970) | $ | (9,448) | |||||||
| Net loss per share - basic and diluted | $ | (0.05) | $ | (1.15) | |||||||
| Weighted-average shares outstanding - basic and diluted | 58,923 | 8,241 | |||||||||
(1)Includes amounts from a related party of $46.0 million and $29.9 million for the three months ended March 31, 2026 and 2025, respectively.
(2)Includes amounts from a related party of $5.1 million and $3.4 million for the three months ended March 31, 2026 and 2025, respectively.
(3)Includes amounts from a related party of $1.3 million and $1.2 million for the three months ended March 31, 2026 and 2025, respectively.
(4)Includes amounts from a related party of $0.7 million and $0.5 million for the three months ended March 31, 2026 and 2025, respectively.
(5)Includes amounts from a related party of $8.4 million and $5.6 million for the three months ended March 31, 2026 and 2025, respectively.
(6)Includes amounts from a related party of $0.5 million and $0.3 million for the three months ended March 31, 2026 and 2025, respectively.
| Omada Health, Inc. | ||
Share-based Compensation Summary | ||
(in thousands) | ||
(unaudited) | ||
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Services cost of revenue | $ | 62 | $ | 38 | |||||||
| Research and development | 739 | 495 | |||||||||
| Sales and marketing | 1,438 | 730 | |||||||||
| General and administrative | 1,970 | 1,581 | |||||||||
| Total share-based compensation expense | $ | 4,209 | $ | 2,844 | |||||||
| Omada Health, Inc. | ||
Consolidated Statements of Cash Flows | ||
(in thousands) | ||
(unaudited) | ||
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating activities | |||||||||||
| Net loss | $ | (2,970) | $ | (9,448) | |||||||
| Adjustments to reconcile net loss to net cash used in operating activities | |||||||||||
| Depreciation and amortization | 1,508 | 1,333 | |||||||||
| Share-based compensation | 4,209 | 2,844 | |||||||||
| Loss on disposal of property and equipment | 2 | 1 | |||||||||
| Amortization of debt issuance costs | - | 109 | |||||||||
| Non-cash operating lease expense | - | 189 | |||||||||
| Change in fair value of warrant liabilities | - | 520 | |||||||||
Provision for credit losses (1) | 806 | 631 | |||||||||
| Amortization of deferred commissions | 958 | 734 | |||||||||
| Changes in operating assets and liabilities | |||||||||||
Accounts receivable (2) | (6,206) | (6,496) | |||||||||
| Inventory | 655 | 254 | |||||||||
Prepaid expenses and other current assets (3) | (1,539) | (595) | |||||||||
| Deferred commissions | (2,202) | (1,200) | |||||||||
| Other non-current assets | (61) | 54 | |||||||||
Accounts payable (4) | (2,124) | 283 | |||||||||
| Operating lease liabilities | - | (206) | |||||||||
Accrued expenses and other current liabilities (5) | (9,165) | (8,425) | |||||||||
Deferred revenue (6) | 4,295 | 3,256 | |||||||||
| Other non-current liabilities | - | 44 | |||||||||
| Net cash used in operating activities | (11,834) | (16,118) | |||||||||
| Investing activities | |||||||||||
| Purchases of property and equipment | (78) | (315) | |||||||||
| Capitalized internal-use software costs | (1,479) | (934) | |||||||||
| Net cash used in investing activities | (1,557) | (1,249) | |||||||||
| Financing activities | |||||||||||
| Proceeds from exercise of stock options | 3,247 | 919 | |||||||||
| Taxes paid related to net share settlement of equity awards | (127) | - | |||||||||
| Payment of deferred offering costs | - | (547) | |||||||||
| Net cash provided by financing activities | 3,120 | 372 | |||||||||
| Net decrease in cash and cash equivalents | (10,271) | (16,995) | |||||||||
| Cash and cash equivalents at beginning of period | 222,036 | 76,392 | |||||||||
| Cash and cash equivalents at end of period | $ | 211,765 | $ | 59,397 | |||||||
(1)Includes changes in related party balances of less than $0.1 million and $0.1 million for the three months ended March 31, 2026 and 2025, respectively.
(2)Includes changes in related party balances of $3.0 million and $4.2 million for the three months ended March 31, 2026 and 2025, respectively.
(3)Includes changes in related party balances of $0.1 million and $0 for the three months ended March 31, 2026 and 2025, respectively.
(4)Includes changes in related party balances of $1.0 million and $0 for the three months ended March 31, 2026 and 2025, respectively.
(5)Includes changes in related party balances of $2.0 million and $1.2 million for the three months ended March 31, 2026 and 2025, respectively.
(6)Includes changes in related party balances of $3.4 million and $3.5 million for the three months ended March 31, 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 loss and comprehensive 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 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 March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| (in thousands, except percentages) | |||||||||||
| GAAP net loss and comprehensive loss | $ | (2,970) | $ | (9,448) | |||||||
| Add: | |||||||||||
| Interest expense | 18 | 1,074 | |||||||||
| Interest income | (1,829) | (542) | |||||||||
| Change in fair value of warrant liabilities | — | 520 | |||||||||
| Share-based compensation expense | 4,209 | 2,844 | |||||||||
| Amortization of intangible assets | 439 | 502 | |||||||||
Depreciation and amortization(1) | 1,069 | 831 | |||||||||
| Loss on disposal of property and equipment | 2 | — | |||||||||
| Adjusted EBITDA | $ | 938 | $ | (4,219) | |||||||
| GAAP net loss and comprehensive loss margin (as a percentage of revenue) | (4) | % | (17) | % | |||||||
| Adjusted EBITDA margin (as a percentage of revenue) | 1 | % | (8) | % | |||||||
(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 March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| (in thousands, except percentages) | |||||||||||
| GAAP gross profit | $ | 48,693 | $ | 31,900 | |||||||
| Add: | |||||||||||
| Share-based compensation expense | 62 | 38 | |||||||||
| Amortization of intangible assets | 439 | 439 | |||||||||
Depreciation and amortization(1) | 980 | 741 | |||||||||
| Non-GAAP gross profit | 50,174 | 33,118 | |||||||||
| GAAP gross margin (as a percentage of revenue) | 62 | % | 58 | % | |||||||
| Non-GAAP gross margin (as a percentage of revenue) | 64 | % | 60 | % | |||||||
(1) Depreciation and amortization includes depreciation of property and equipment and amortization of capitalized internal-use software costs
| GAAP Research and development expense | $ | 12,697 | $ | 8,806 | |||||||
| Less: | |||||||||||
| Share-based compensation expense | 739 | 495 | |||||||||
Depreciation and amortization (1) | 32 | 18 | |||||||||
| Non-GAAP research and development expense | $ | 11,926 | $ | 8,293 | |||||||
| Non-GAAP research and development expense (as a % of revenue) | 15 | % | 15 | % | |||||||
| GAAP Sales and marketing expense | $ | 26,787 | $ | 20,170 | |||||||
| Less: | |||||||||||
| Share-based compensation expense | 1,438 | 730 | |||||||||
| Amortization of intangible assets | — | 63 | |||||||||
Depreciation and amortization (1) | 36 | 27 | |||||||||
| Non-GAAP sales and marketing expense | $ | 25,313 | $ | 19,350 | |||||||
| Non-GAAP sales and marketing expense (as a % of revenue) | 32 | % | 35 | % | |||||||
| GAAP General and administrative expense | $ | 13,990 | $ | 11,320 | |||||||
| Less: | |||||||||||
| Share-based compensation expense | 1,970 | 1,581 | |||||||||
Depreciation and amortization (1) | 21 | 45 | |||||||||
| Loss on disposal of property and equipment | 2 | 1 | |||||||||
| Non-GAAP general and administrative expense | $ | 11,997 | $ | 9,693 | |||||||
| Non-GAAP general and administrative expense (as a % of revenue) | 15 | % | 18 | % | |||||||
| GAAP operating expenses | $ | 53,474 | $ | 40,296 | |||||||
| Less: | |||||||||||
| Share-based compensation expense | 4,147 | 2,806 | |||||||||
| Amortization of intangible assets | — | 63 | |||||||||
Depreciation and amortization(1) | 89 | 90 | |||||||||
| Loss on disposal of property and equipment | 2 | 1 | |||||||||
| Non-GAAP operating expenses | $ | 49,236 | $ | 37,336 | |||||||
| GAAP operating expenses margin (as a percentage of revenue) | 69 | % | 73 | % | |||||||
| Non-GAAP operating expenses margin (as a percentage of revenue) | 63 | % | 68 | % | |||||||
(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 Operating Activities to Free Cash Flow | |||||||||||
| (in thousands) | |||||||||||
| (unaudited) | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash used in operating activities | $ | (11,834) | $ | (16,118) | |||||||
| Purchases of property and equipment | (78) | (315) | |||||||||
| Capitalized internal-use software costs | (1,479) | (934) | |||||||||
| Free Cash Flow | $ | (13,391) | $ | (17,367) | |||||||
| Other cash flow components: | |||||||||||
| Net cash used in investing activities | $ | (1,557) | $ | (1,249) | |||||||
| Net cash provided by financing activities | $ | 3,120 | $ | 372 | |||||||
FAQ
How did Omada Health (OMDA) perform financially in Q1 2026?
Omada Health generated $78.0 million in revenue in Q1 2026, up 42% year over year. GAAP net loss narrowed to $3.0 million from $9.4 million, and adjusted EBITDA improved to a $0.9 million profit from a $4.2 million loss, reflecting better operating leverage.
What member growth did Omada Health (OMDA) report for Q1 2026?
Total Members reached 1.02 million at the end of Q1 2026, a 51% year-over-year increase. This metric tracks people enrolled in Omada’s virtual care programs who generated a billing event in the preceding 12 months, and is a key driver of services revenue growth.
How are Omada Health’s margins and profitability trending in Q1 2026?
GAAP gross margin improved to 62% from 58% in Q1 2025, while non-GAAP gross margin rose to 64% from 60%. Net loss shrank to $3.0 million, and adjusted EBITDA turned positive at $0.9 million, indicating better cost efficiency and operating scale.
What 2026 financial outlook did Omada Health (OMDA) provide?
For the year ending December 31, 2026, Omada expects revenue of $322 million to $330 million and adjusted EBITDA of $14 million to $20 million. Both ranges were raised from prior guidance, and the revenue midpoint implies 25% growth compared with 2025.
What is Omada Health’s cash position after Q1 2026?
Omada Health reported cash and cash equivalents of $211.8 million as of March 31, 2026. During Q1, free cash flow was negative $13.4 million, reflecting net cash used in operating activities plus capital expenditures and capitalized internal-use software costs.
How did Omada Health’s non-GAAP metrics change in Q1 2026?
Non-GAAP gross profit rose to $50.2 million from $33.1 million, with non-GAAP gross margin improving to 64% from 60%. Non-GAAP operating expenses were $49.2 million versus $37.3 million, and adjusted EBITDA improved to a $0.9 million gain compared with a $4.2 million loss.
What are Omada Health’s key non-GAAP definitions and why are they used?
Omada defines adjusted EBITDA by excluding interest, taxes, share-based compensation, depreciation, amortization, warrant fair-value changes and certain other items. Management believes non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA and free cash flow help investors understand operating performance alongside GAAP results.