Q2 2026 Omada Health Inc Earnings Call Transcript
Key Points
- Omada Health Inc (OMDA) reported its strongest quarter ever, with record revenue of $88 million, up 43% year-over-year, and record gross margin of 73% on a GAAP basis.
- The company achieved GAAP net income profitability for the second consecutive quarter, reporting over $5 million in net income and $11 million in adjusted EBITDA, a significant improvement from a loss a year ago.
- Total members grew 45% year-over-year to approximately 1.1 million, driven by broad-based enrollment growth across its cardiometabolic suite, including strong performance in diabetes and hypertension programs.
- The company raised its full-year 2026 revenue guidance to $334-$340 million and adjusted EBITDA guidance to $21-$27 million, reflecting strong Q2 performance and confidence in the second half.
- Omada Health Inc (OMDA) expanded its partnership with HCSC to add 1.5 million covered lives in three additional states, and launched its cholesterol program with a major retailer, showing strong product market traction.
- Cost to serve declined over 10% year-over-year, driven by AI and machine learning efficiencies, contributing to a 700 basis point gross margin expansion and improved operating leverage.
- The company expects year-over-year growth rate to moderate in the second half of 2026 due to historic seasonality and a strong first-half enrollment period, which may concern investors looking for sustained momentum.
- Omada Health Inc (OMDA) faces uncertainty in the GLP-1 market as employers are currently evaluating coverage decisions, with some potentially expanding coverage and others walking away, creating unpredictability in future demand.
- The company's guidance implies a slight step-down in EBITDA margin in the back half of the year, partly due to front-loaded investments in hiring and R&D that will annualize at full run rate.
- Despite strong overall growth, the GLP-1 program mix has remained roughly constant at around 17% of total members, suggesting potential saturation or slower growth in this key segment.
- The company's newer PBM channel, which includes its prescribing program, is still in very early stages of its sales motion, indicating that significant revenue contribution from this channel may take time to materialize.
- Omada Health Inc (OMDA) faces competitive and market pressures as employers may choose to let employees go direct-to-consumer for GLP-1s, potentially reducing the need for employer-sponsored programs.
Good day and thank you for standing by. Welcome to the Omada Health second quarter 2026 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press *11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's conference is being. I would now like to hand the conference over to your first speaker today, Craig Gracey, Vice President and Chief Accounting Officer. Please go ahead.
Thank you. Good afternoon. Welcome to Omada Health's second-quarter 2026 earnings conference call. Joining me today are Sean Duffy, our Co-Founder and CEO, Wei Li Xiao, our President, and Steve Cook, our CFO.
Before we begin, I'd like to note that we will be discussing non-GAAP financial measures that we consider helpful in evaluating Omada's
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