Omada Health (NASDAQ:OMDA) Posts Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Omada Health (NASDAQ:OMDA) announced its quarterly earnings results on Thursday. The company reported $0.08 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.02) by $0.10, Zacks reports. Omada Health had a negative return on equity of 1.82% and a negative net margin of 2.22%.

Here are the key takeaways from Omada Health’s conference call:

• Record Q2 performance: Revenue rose 43% year over year to $88 million, while GAAP gross margin expanded to 73%, net income reached $5 million, and adjusted EBITDA rose to $11 million.
• Omada ended the quarter with approximately 1.1 million members, up 45% year over year, supported by broad growth across diabetes, hypertension, GLP-1, prevention, and weight-health programs. Members also remained in active treatment nearly 10% longer, while cost of revenue per member declined more than 10%.
• Commercial momentum remains strong, including new employer wins, expanding PBM channels, a cholesterol launch with a major retailer, and an HCSC expansion covering an additional 1.5 million lives that is expected to begin contributing revenue in the first half of 2027.
• Management raised full-year 2026 guidance to $334 million-$340 million of revenue and $21 million-$27 million of adjusted EBITDA, citing Q2 strength and visibility into the second half.
• CEO and co-founder Sean Duffy will become Executive Chair on January 1, 2027, with President Wei-Li Shao succeeding him as CEO; management characterized the transition as planned and emphasized continuity, while noting that second-half revenue growth and EBITDA margins will moderate because of seasonality and ongoing investments.

Omada Health Price Performance

Shares of NASDAQ OMDA traded up $0.43 during trading hours on Thursday, reaching $19.54. The stock had a trading volume of 2,131,836 shares, compared to its average volume of 1,233,414. The company has a market cap of $1.16 billion, a price-to-earnings ratio of -72.37 and a beta of 1.73. Omada Health has a twelve month low of $10.28 and a twelve month high of $26.92. The business’s fifty day moving average is $20.21 and its two-hundred day moving average is $16.12.

Insider Activity

In other news, CFO Steven L. Cook sold 12,337 shares of the company’s stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $23.09, for a total value of $284,861.33. Following the sale, the chief financial officer directly owned 187,209 shares in the company, valued at approximately $4,322,655.81. This represents a 6.18% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CAO Craig Gracey sold 2,083 shares of the company’s stock in a transaction on Monday, June 29th. The shares were sold at an average price of $21.00, for a total value of $43,743.00. Following the completion of the sale, the chief accounting officer owned 858 shares in the company, valued at $18,018. This trade represents a 70.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 206,406 shares of company stock worth $4,191,483. Corporate insiders own 6.38% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of OMDA. Quarry LP bought a new position in shares of Omada Health in the fourth quarter valued at approximately $29,000. Raymond James Financial Inc. bought a new stake in Omada Health during the 2nd quarter worth approximately $32,000. New York State Common Retirement Fund acquired a new stake in Omada Health during the 4th quarter valued at $73,000. JPMorgan Chase & Co. acquired a new stake in Omada Health during the 3rd quarter valued at $82,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in Omada Health in the 3rd quarter valued at $95,000.

Analyst Ratings Changes

Several equities analysts have commented on the stock. Canaccord Genuity Group increased their target price on shares of Omada Health from $24.00 to $28.00 and gave the stock a “buy” rating in a research report on Tuesday, July 21st. Needham & Company LLC reiterated a “buy” rating and set a $28.00 price target on shares of Omada Health in a research note on Friday, May 8th. Evercore reissued an “outperform” rating and set a $20.00 price objective on shares of Omada Health in a report on Friday, May 8th. BTIG Research began coverage on Omada Health in a report on Friday, July 17th. They set a “buy” rating and a $30.00 price objective on the stock. Finally, Citizens Jmp boosted their target price on Omada Health from $21.00 to $27.00 and gave the stock a “market outperform” rating in a report on Monday, July 20th. Eleven research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Omada Health presently has an average rating of “Moderate Buy” and a consensus price target of $24.75.

Omada Health Company Profile

Omada Health is a digital health company that specializes in the prevention and management of chronic conditions through personalized, technology-driven programs. The company’s platform combines data analytics, behavioral science and human coaching to support individuals at risk for or living with conditions such as prediabetes, type 2 diabetes, hypertension and musculoskeletal disorders. Participants access the program via a mobile app or web portal, where they receive tailored curriculum, feedback on health metrics and ongoing virtual coaching.

In addition to its core disease-management offerings, Omada Health has expanded its services to include mental health support and digital therapeutics for weight management.