Omada Health, Inc. (OMDA) AI Stock Analysis

• Market Cap: $906.26M
• Dividend Yield: N/A
• Average Volume (3M): 958.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.72
• Revenue Growth: 50.51%
• EPS Growth: 50.92%
• Country: US
• Employees: 849
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.06
• Shares Outstanding: 57,908,047
• 10 Day Avg. Volume: 1,570,102
• 30 Day Avg. Volume: 958,968
• PEG Ratio: 0.91
• Price to Book (P/B): 19.84
• Price to Sales (P/S): 7.55
• P/FCF Ratio: -33.70
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 5.86
• Enterprise Value/Gross Profit: 9.23
• Enterprise Value/Ebitda: -92.22
• 1Y Price Target: $29.14
• Price Target Upside: 86.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): -0.03
• Revenue Forecast (FY): $253.34M

• Rating: 56 Neutral
• Price Target: $16.00 ▲(2.24% Upside)

Omada Health's strong revenue growth and strategic initiatives are promising, but profitability challenges and bearish technical indicators weigh heavily on the stock. The earnings call provided positive insights, yet concerns about cash flow and market dependence remain significant risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Omada's digital health solutions, supporting long-term expansion and market penetration.

Membership Increase

Significant membership growth enhances recurring revenue potential and strengthens Omada's position in the digital health market.

Innovation and Product Development

Innovative product offerings like AI-driven tools enhance user engagement and differentiate Omada in the competitive digital health space.

Negative Factors

Profitability Challenges

Ongoing profitability issues could limit reinvestment capabilities and affect long-term financial health despite revenue growth.

Cash Flow Concerns

Negative cash flow ratios indicate potential liquidity issues, which may hinder operational flexibility and strategic investments.

Dependence on GLP-1 Segment

Reliance on a single market segment poses risks if market conditions change, potentially impacting growth sustainability.

Omada Health, Inc. Business Overview & Revenue Model

Company Description

Omada Health is a U.S.-based virtual-care provider offering clinically validated programs for chronic conditions like cardiometabolic disease, musculoskeletal care, and behavioral health—delivered digitally between doctor visits.

How the Company Makes Money

Omada Health generates revenue through a subscription-based model, primarily targeting employers, health plans, and insurers who pay for their digital health programs as part of employee wellness initiatives or health management solutions. Key revenue streams include per-member-per-month fees, which are often based on the number of users enrolled in their programs. Additionally, the company benefits from partnerships with various healthcare organizations and payers, which may include arrangement for shared savings or performance-based incentives related to improved health outcomes. Omada’s focus on tackling chronic conditions also positions it well for reimbursement opportunities as healthcare systems increasingly shift towards value-based care.

Omada Health, Inc. Financial Statement Overview

Summary

Omada Health is experiencing strong revenue growth and improving gross profit margins, which are positive indicators for future performance. However, the company is still facing significant challenges with profitability and cash flow management. The balance sheet shows moderate leverage, but the negative return on equity highlights the need for improved financial performance.

Income Statement

Omada Health has shown a strong revenue growth rate of 37.67% from 2023 to 2024, indicating a positive trajectory in sales. The gross profit margin has improved to 60.59%, reflecting efficient cost management. However, the company is still facing challenges with profitability, as evidenced by a negative net profit margin of -27.76% and negative EBIT and EBITDA margins. These figures suggest that while revenue is growing, the company is not yet profitable.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.47, indicating a moderate level of leverage. The return on equity remains negative at -72.93%, highlighting ongoing profitability challenges. The equity ratio is not explicitly provided, but the company's total assets and stockholders' equity suggest a relatively stable financial position. Overall, the balance sheet reflects a need for improved profitability and careful management of debt levels.

Cash Flow

Omada Health's free cash flow has improved, with a growth rate of 26.56% from 2023 to 2024, indicating better cash management. The operating cash flow to net income ratio is negative, suggesting that the company is still facing cash flow challenges. However, the free cash flow to net income ratio of 1.11 indicates that the company is generating sufficient free cash flow relative to its net income, which is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	184.36M	169.80M	122.78M	89.19M
Gross Profit	117.15M	102.88M	69.97M	42.79M
EBITDA	-11.72M	-37.83M	-58.36M	-63.99M
Net Income	-17.94M	-47.14M	-67.51M	-72.52M
Balance Sheet
Total Assets	287.47M	150.89M	175.08M	221.80M
Cash, Cash Equivalents and Short-Term Investments	198.63M	76.39M	115.64M	168.12M
Total Debt	0.00	30.19M	30.58M	30.81M
Total Liabilities	70.12M	86.26M	76.16M	66.19M
Stockholders Equity	217.35M	64.63M	98.92M	155.60M
Cash Flow
Free Cash Flow	-5.18M	-38.04M	-52.66M	-71.70M
Operating Cash Flow	-3.13M	-34.18M	-49.74M	-68.98M
Investing Cash Flow	-4.49M	-3.86M	-2.92M	-2.72M
Financing Cash Flow	129.85M	-1.21M	179.00K	16.32M

Omada Health, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMDA	56 Neutral	$906.26M	―	―	―	50.51%	50.92%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TIVC	43 Neutral	$3.92M	-0.20	-178.18%	―	-49.63%	82.22%
HSCS	40 Underperform	$7.70M	―	-193.24%	―	-66.40%	65.99%
ACXP	39 Underperform	$10.03M	-0.45	-291.07%	―	―	61.10%
BJDX	29 Underperform	$2.16M	-0.04	-126.20%	―	―	97.70%
HCTI	27 Underperform	$15.45M	-0.02	-182.56%	―	-21.88%	68.40%

Omada Health, Inc. Corporate Events

Omada Health Reports Strong Growth and Innovation

The latest earnings call from Omada Health, Inc. painted a picture of robust growth and strategic innovation. The company reported strong membership and revenue increases, driven by operational efficiency and innovation, despite some concerns about cash flow due to debt repayment and reliance on the GLP-1 market segment. Overall, the financial and strategic outlook remains positive, indicating a promising future for the company.

Omada Health Reports Strong Q3 2025 Growth

Omada Health, Inc. is a virtual healthcare provider focusing on cardiometabolic and musculoskeletal conditions, leveraging AI technology to deliver personalized care. In its third quarter of 2025, Omada Health reported significant financial growth, with a 49% increase in revenue to $68 million and a 53% rise in total membership compared to the previous year. The company also achieved its first quarter of positive adjusted EBITDA, marking a notable reduction in net loss from $9 million to $3 million.