This article first appeared on GuruFocus .
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Revenue:Q3 revenue of $91 million, up 34% year-over-year and ~4% sequentially from $88 million in Q2.
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Gross Margin:GAAP gross margin of 76% (up from 66% a year ago); non-GAAP gross margin of 78% (up from 68%).
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Net Income:GAAP net income of nearly $7 million, versus a GAAP net loss of ~$3 million in Q3 last year (an improvement of ~$10 million).
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Adjusted EBITDA:$12 million, up ~$10 million year-over-year and a quarterly record; adjusted EBITDA margin of ~14%.
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Operating Expenses:GAAP operating expenses at 71% of revenue (vs. 70% a year ago); non-GAAP at 64% (vs. 65%).
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Cash and Cash Equivalents:~$243 million at quarter end, with no debt.
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Total Members:Record 1,134,000 total members, up 36% year-over-year; ~43,000 net new members added in Q3.
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Revenue Per Total Member:$294 on a trailing 12-month basis, vs. $280 in Q3 last year and $284 in Q2.
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Cost of Care:Non-GAAP cost of revenue per total member (trailing 12-month) reached an all-time low of $81, down from $85 in Q2 and $94 in Q3 2025.
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Member Retention:Improved to 58%, up from 43% in Q4 2024; average tenure reached a record ~two years and four months, up 10% year-over-year.
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Full-Year 2026 Revenue Guidance:Raised to $344 million$346 million (from prior $334 million$340 million); midpoint implies ~33% growth vs. 2025.
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Full-Year 2026 Adjusted EBITDA Guidance:Raised to $32 million$34 million (from prior $21 million$27 million); midpoint implies ~$27 million improvement vs. 2025.
Release Date: November 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Omada Health Inc ( NASDAQ:OMDA ) reported its strongest quarter ever, with revenue growing 34% year-over-year to $91 million and record net income of nearly $7 million.
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Gross margin expanded significantly to 76% GAAP and 78% non-GAAP, up from 66% and 68% respectively, driven by lower cost to serve and favorable program mix.
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Total members reached a record 1.13 million, up 36% year-over-year, with diabetes and hypertension programs leading growth and contributing to higher revenue per member.
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Member retention improved to 58% from 43% in Q4 2024, and average tenure reached a record 2 years and 4 months, supporting higher lifetime value and margin expansion.
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Omada Health Inc ( NASDAQ:OMDA ) raised full-year 2026 revenue guidance to $344-$346 million and adjusted EBITDA guidance to $32-$34 million, reflecting strong performance and operating leverage.
Negative Points
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New enrollments are expected to decline sequentially in Q4 due to typical seasonality and a tough comparison to H2 2025 when a new GLP-1 offering drove unusually strong enrollments.
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The selling season is extending deeper into Q4 due to GLP-1 coverage decisions and rising healthcare costs, creating uncertainty around 2027 covered lives and revenue.
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GLP-1 market dynamics remain uncertain, with some employers potentially reducing coverage, which could impact demand for Omada Health Inc ( NASDAQ:OMDA )'s GLP-1 Care Track and related programs.
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Fourth-quarter adjusted EBITDA is expected to moderate from Q3 as Omada Health Inc ( NASDAQ:OMDA ) increases R&D headcount and ramps care team staffing for the 2027 benefit launch.
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Increased prevalence of performance guarantees and outcome-based risk sharing in contracts may pressure margins if Omada Health Inc ( NASDAQ:OMDA ) fails to meet clinical or ROI targets.
Q & A Highlights
Q: With GLP-1 coverage decisions top of mind for employers and the selling season extending into Q4, is it more favorable for Omada if employers add or discontinue GLP-1 coverage? A: Wei-Li Shao, President, said Omada's go-to-market strategy is built to straddle both sides of the coverage decision. If employers cover GLP-1s, Omada offers prescribing and lifestyle support through its GLP-1 Care Track, covered across several PBMs and health plans. If employers do not cover GLP-1s, Omada's GLP-1 Flex Care product, launched in March, provides the same prescribing, clinical expertise, and lifestyle support. He noted growing employer interest in Flex Care given data on amplified weight loss, higher-quality weight loss with fat loss and lean mass preservation, greater adherence, and little to no weight regain after stopping a GLP-1. Omada closed a relatively large financial institution mid-year that accelerated an in-year launch, and Shao looks forward to a full selling cycle for Flex Care in 2027.
Q: Can you clarify the total member count implied for Q4 in guidance, given the comments on declines versus moderation? A: Steve Cook, CFO, said 2025 saw acceleration in the back half from launching a new GLP-1 product with a new channel partner, while 2026 reflects more typical seasonality with a big Q1 influx that moderates through the year. The current implication is that total members will step down slightly going into Q4, and the team is focused on execution and building pipeline with employer, health plan, and PBM partners to get off to a strong start in 2027.
Q: How should we break down the 20%-plus growth target for 2027 and beyond between member growth and ARPU growth? A: Steve Cook, CFO, pointed to the three growth levers outlined at Investor Day: expanding covered lives, improving enrollment rate, and increasing engagement and tenure. For 2027, Omada will focus on all three, including the 1.5 million covered lives added with HCSC and investment in enrollment efficacy across email (100 million-plus emails in the last 12 months) and direct marketing. Average tenure reached two years and four months, up 10% year-over-year, driven by multi-product adoption and more diabetic and hypertensive members, which carry the highest prices and strongest LTV. Pushing prescribing capabilities, the highest-priced product, should lift trailing 12-month revenue per member as those members roll through the base.
Q: How is the overall selling season progressing across all of Omada, and how much do you expect covered lives to expand heading into next year? A: Wei-Li Shao, President, said GLP-1 market dynamism and rising healthcare costs are extending the selling season later into Q4 than usual, and with significant pipeline still to close, he could not quantify covered lives for 2027. He noted execution against two objectives: multi-condition sales, with 40% to 50% of new deals closed in Q3 for multi-condition or multiple products, and channel diversification, with pipeline fairly evenly distributed and CVS and Optum featuring more than in prior periods.
Q: How much can being embedded at the benefit level in HCSC's fully insured book push enrollment or conversion higher, and are there other similar payer relationships? A: Wei-Li Shao, President, said the roughly 1.5 million lives expansion into three additional states for hypertension and prevention programs goes live January 1, 2027, with direct outreach to members phased throughout the year rather than all at once, so results should show up next year. He confirmed Omada has similar direct-to-member arrangements in other fairly large-scale partners' fully insured books and is familiar with executing that motion.
Q: Did faster onboarding materially shorten the time from enrollment to first billing and contribute to the revenue outperformance, or was the benefit primarily more people enrolling? A: Steve Cook, CFO, said Omada made a tactical shift earlier in the quarter to enroll people as they sign up rather than in weekly groups, which drove immediate pickup and conversion improvements in the enrollment rate, especially early in the quarter, and partially led to the revenue beat.
Q: With competitors marketing 100% fees at risk for cardiometabolic programs starting next year, are you seeing more RFPs mandate outcome-based risk sharing, and what share of revenue is tied to clinical performance guarantees? A: Wei-Li Shao, President, said performance, outcome, and ROI guarantees have become more prevalent in negotiations over the last three or four years as healthcare costs rise. He emphasized Omada's evidence base of 30-plus peer-reviewed publications covering both outcomes and economics, which lets the company stand on its data and take appropriate risk when guarantees are required. He said Omada is standing firm on its outcomes and economics and having success.
Q: Assuming member duration stays the same or improves, will gross margin continue to trend higher toward the 80% target, and what are the main drivers? A: Steve Cook, CFO, cited multiple drivers: on the top line, multi-product adoption and a richer mix of diabetic, hypertensive, and prescribing members; on cost, more efficient care teams, supply chain negotiations for devices and shipping, and AI-enabled care team efficiency. Longer-tenured members, including those in their fifth and sixth years, bill less but carry very little incremental cost, making them some of Omada's highest gross profit members.
Q: What is Omada doing differently in outreach to the covered lives base that drove better in-year enrollment this year? A: Wei-Li Shao, President, said the enrollment yield rate is up about 10% year to date versus last year and carried through in Q3. Omada runs extensive A/B testing each second half across email, direct mail, and other channels, with growing experimentation in social showing moderate green shoots. Steve Cook, CFO, added that across 25 million covered lives, Omada selectively uses direct mail where ROI and CAC/LTV can be tracked, targeting higher-acuity diabetic and hypertensive populations, which has shown progress in 2026.
Q: Where is Omada with care team headcount heading into the new benefit year, and is the company hitting capacity? A: Steve Cook, CFO, said core operations have realized significant efficiency under Chief Care Delivery Officer Jennifer Becker, and with more AI leverage, net care team headcount is down year-over-year. Omada plans to
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
