Omada Health, Inc. (OMDA) AI Stock Analysis

• Market Cap: $1.16B
• Dividend Yield: N/A
• Average Volume (3M): 502.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.23
• 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: 851,655
• 30 Day Avg. Volume: 502,163
• 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: 0.93
• Enterprise Value/Revenue: 5.86
• Enterprise Value/Gross Profit: 9.23
• Enterprise Value/Ebitda: -92.22
• 1Y Price Target: $28.50
• Price Target Upside: 46.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): -0.03
• Revenue Forecast (FY): $251.72M

• Rating: 58 Neutral
• Price Target: $22.50 ▲(15.62% Upside)

Omada Health shows strong revenue growth and improving gross margins, which are positive indicators. However, significant challenges remain with profitability and cash flow management. Technical indicators suggest bearish momentum, and the valuation is impacted by a negative P/E ratio. The earnings call provided a positive outlook with strategic initiatives, but concerns about cash flow and market dependence persist.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Omada's services, suggesting effective market penetration and potential for continued expansion.

Operational Efficiency

Improved operational efficiency with slower expense growth than revenue enhances profitability potential, supporting long-term financial health.

Innovation and Product Development

Continued innovation in AI-driven tools enhances user engagement and service differentiation, strengthening competitive advantage.

Negative Factors

Profitability Challenges

Persistent profitability issues, as indicated by negative margins, could hinder long-term financial sustainability and investment capacity.

Debt Levels

Rising debt levels may constrain financial flexibility and increase risk, necessitating careful debt management to avoid liquidity issues.

Dependence on GLP-1 Segment

Heavy reliance on a single market segment could expose Omada to significant risks if market conditions change, affecting growth stability.

Omada Health, Inc. Business Overview & Revenue Model

Company Description

Omada Health, Inc. is a digital health company that specializes in chronic disease management and prevention. The company focuses on providing evidence-based health programs designed to help individuals manage conditions such as diabetes, hypertension, and obesity. Utilizing a combination of personalized coaching, digital tools, and data analytics, Omada aims to improve health outcomes for its users while reducing healthcare costs for employers and health plans. Its core products include comprehensive digital health programs that support lifestyle changes through behavioral health interventions and remote monitoring.

How the Company Makes Money

Omada Health generates revenue primarily through partnerships with employers, health plans, and healthcare providers who offer its digital health programs as part of their benefits packages. The company operates on a subscription-based model, where clients pay a per-member, per-month fee for access to its services. Key revenue streams include direct sales to large employers, contracts with health insurance companies, and government health programs. Additionally, Omada may benefit from performance-based incentives tied to health outcomes, which can further enhance its revenue potential. Strategic partnerships with healthcare organizations and continuous investment in product development also contribute significantly to its earnings.

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	58 Neutral	$1.16B	―	―	―	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	$7.93M	―	-193.24%	―	-66.40%	65.99%
ACXP	39 Underperform	$10.03M	-0.45	-291.07%	―	―	61.10%
BJDX	29 Underperform	$2.59M	-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.

Omada Health Reports Strong Q2 2025 Growth

Omada Health, Inc. is a virtual-first healthcare provider specializing in managing chronic conditions such as diabetes, hypertension, and musculoskeletal issues through clinically validated behavior change protocols. The company operates in the digital health sector and is known for its innovative approach to healthcare delivery.