Omada Health (NASDAQ:OMDA) raised its full-year 2026 revenue and adjusted EBITDA outlook after reporting record quarterly revenue and net income in the third quarter, driven by enrollment and growth in its diabetes and hypertension programs.
Revenue rose 34% year over year to $91 million, while net income reached nearly $7 million, compared with a loss of approximately $3 million a year earlier. Adjusted EBITDA increased by approximately $10 million to a quarterly record of $12 million, the company said.
Chief Financial Officer Steve Cook attributed the revenue performance to strong enrollments early in the quarter, a shift toward higher-value programs and increased engagement across the member base. Revenue also rose approximately 4% from $88 million in the second quarter.
Higher margins and longer member tenure
Omada ended the quarter with 1.134 million members, up 36% from a year earlier, after adding approximately 43,000 net new members during the period. President Wei-Li Shao said diabetes and hypertension continued to lead program growth, with members in those programs tending to remain engaged longer.
Average member tenure reached roughly two years and four months, up 10% year over year, Shao said. Member retention improved to 58% from 43% in the fourth quarter of 2024, an increase he attributed largely to the program mix and improvements to the member experience and app.
GAAP gross margin increased to 76% from 66% a year earlier, while non-GAAP gross margin rose to 78% from 68%. Cook said lower care delivery costs and the maturation of longer-tenured member groups contributed to the improvement. He also noted a seasonal effect: Enrollment-related care team and device costs have historically been highest in the first quarter.
Non-GAAP cost of revenue per total member over the trailing 12 months fell to $81 from $94 a year earlier. Shao said automation and artificial intelligence have helped care teams support more members. Cook added that care team headcount had decreased year over year, although the company plans to add some capacity for the first-quarter enrollment season.
Outlook calls for a fourth-quarter slowdown
Omada raised its 2026 revenue guidance to $344 million to $346 million from $334 million to $340 million. It also increased its adjusted EBITDA outlook to $32 million to $34 million from $21 million to $27 million.
Cook said the company expects fourth-quarter revenue to fall below the third-quarter level because of the lower enrollment and engagement activity it has historically seen during the holidays. Adjusted EBITDA is also expected to moderate as Omada adds research and development staff and prepares its care teams for the 2027 benefit launch.
During the question-and-answer session, Cook said the outlook implies a slight sequential decline in total members in the fourth quarter. He noted that enrollment in the second half of 2025 was unusually strong because of a GLP-1 offering launched with a channel partner, while 2026 has followed a more typical seasonal pattern.
Omada ended the third quarter with approximately $243 million in cash and cash equivalents and no debt, Cook said.
Employers weigh GLP-1 coverage
Shao said employers are taking more time to make decisions about coverage for GLP-1 medications and obesity care, while rising health care costs have heightened buyers’ focus on outcomes and return on investment. Those factors are extending the selling season further into the fourth quarter than usual, he said.
Omada offers prescribing and lifestyle support for employers that cover GLP-1s, as well as its Flex Care program for employers that do not. Shao said it was too early to quantify covered lives or employer sign-ups for 2027 because the company still had a significant number of deals to close. He said 40% to 50% of new deals closed in the third quarter covered multiple conditions or products.
The company’s prescribing program is in the market with Optum, and Omada has commercial relationships with the country’s three largest pharmacy benefit managers, Shao said.
Omada also reiterated an agreement to extend its Prevention & Weight Health and hypertension programs into Health Care Service Corporation’s fully insured business in three additional states. The expansion could reach an estimated 1.5 million additional covered lives in 2027. Shao said outreach will begin in January and be phased throughout the year.
Separately, Shao said recently published peer-reviewed research found that members in Omada’s GLP-1 Care Track lost an average of 6% of their weight at 12 weeks, compared with 3.3% for GLP-1 users receiving non-Omada care.
Co-founder and Chief Executive Officer Sean Duffy reiterated that Shao will become CEO on January 1, 2027, while Duffy will transition to executive chair.
About Omada Health (NASDAQ:OMDA)
Omada Health, Inc (NASDAQ: OMDA) is a digital health company that provides virtual care programs for people managing chronic conditions. Its platform combines personalized health coaching, clinical support, behavioral-change tools and connected devices to help members monitor and improve their health.
The company’s offerings focus primarily on cardiometabolic conditions, including diabetes, prediabetes, hypertension and obesity, as well as musculoskeletal conditions. Depending on the program, members may receive access to digital lessons, health tracking, remote monitoring, care teams and clinical guidance through Omada’s technology platform.
Omada Health was founded in 2011 and serves employers, health plans and other healthcare organizations in the United States.
