Omada Health, Inc. (OMDA) AI Stock Analysis

• Market Cap: $1.27B
• Dividend Yield: N/A
• Average Volume (3M): 438.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 4.83
• Revenue Growth: 47.99%
• EPS Growth: 44.25%
• Country: US
• Employees: 849
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Healthcare Information Services
• EPS (TTM): N/A
• Shares Outstanding: 57,574,920
• 10 Day Avg. Volume: 429,383
• 30 Day Avg. Volume: 438,719
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 7.36
• Enterprise Value/Gross Profit: 11.87
• Enterprise Value/Ebitda: -86.39
• 1Y Price Target: $25.78
• Price Target Upside: 17.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 58 Neutral
• Price Target: $20.00 ▼(-8.93% Downside)

Omada Health's overall stock score is primarily influenced by its strong revenue growth and successful IPO, which provide a positive outlook for future expansion. However, the company's current unprofitability and cash flow challenges, along with a high beta indicating volatility, weigh down the score. The negative P/E ratio and lack of dividend yield further impact the valuation negatively.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and product adoption, supporting long-term business expansion and sustainability.

New Product Impact

The success of Omada's virtual physical therapy program enhances its product portfolio, offering cost-effective solutions that strengthen its competitive position in the healthcare market.

Successful IPO

The successful IPO provides significant capital for expansion and enhances Omada's market position, supporting strategic growth initiatives and operational scaling.

Negative Factors

Profitability Challenges

Persistent profitability challenges suggest ongoing operational inefficiencies, which could hinder long-term financial stability and growth potential.

Cash Flow Management

Negative cash flow management indicates potential liquidity issues, which could impact the company's ability to fund operations and invest in growth opportunities.

High Leverage

Increased leverage can limit financial flexibility and increase risk, potentially affecting the company's ability to manage debt and finance future growth sustainably.

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 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	116.33M	169.80M	122.78M	89.19M
Gross Profit	72.08M	102.88M	69.97M	42.79M
EBITDA	-9.91M	-37.83M	-58.36M	-63.99M
Net Income	-14.76M	-47.14M	-67.51M	-72.52M
Balance Sheet
Total Assets	302.97M	150.89M	175.08M	221.80M
Cash, Cash Equivalents and Short-Term Investments	223.15M	76.39M	115.64M	168.12M
Total Debt	29.97M	30.19M	30.58M	30.81M
Total Liabilities	88.76M	86.26M	76.16M	66.19M
Stockholders Equity	214.21M	64.63M	98.92M	155.60M
Cash Flow
Free Cash Flow	-14.78M	-38.04M	-52.66M	-71.70M
Operating Cash Flow	-13.26M	-34.18M	-49.74M	-68.98M
Investing Cash Flow	-2.50M	-3.86M	-2.92M	-2.72M
Financing Cash Flow	162.51M	-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	$1.27B	―		―	47.99%	44.25%
Sector *	51 Neutral	$8.02B	-0.31	-43.38%	2.24%	22.31%	-2.14%
HSCS	47 Neutral	$7.50M	―	-193.24%	―	-66.40%	65.99%
TIVC	43 Neutral	$4.83M	―	-160.96%	―	-58.49%	84.67%
ACXP	39 Underperform	$6.77M	―	-285.93%	―	―	53.79%
BJDX	29 Underperform	$2.20M	―	-96.69%	―	―	98.25%
HCTI	27 Underperform	$15.69M	―	-118.48%	―	-45.90%	59.17%

Omada Health, Inc. Corporate Events

Omada Health Completes Successful Initial Public Offering

On June 9, 2025, Omada Health, Inc. successfully completed its initial public offering, selling 9,085,000 shares of common stock at $19.00 per share, raising gross proceeds of $172,615,000. This move signifies a significant milestone for the company, potentially enhancing its market position and providing capital to expand its operations and services.