Omada Health, Inc. (OMDA)
NASDAQ:OMDA
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Omada Health, Inc.
(NASDAQ:OMDA)
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Rating:73Outperform
Price Target:
$18.00
▲(27.30% Upside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by improving financial performance (growth, margin expansion, and a 2025 turn to positive operating/free cash flow) and a strong earnings call with raised guidance and improving profitability. Technicals are supportive but not fully in a long-term uptrend versus the 200-day average, while valuation remains a key weakness due to ongoing GAAP unprofitability and no dividend.
Positive Factors
Revenue & Membership Growth
Rapid topline growth combined with a >1M member base and 51% YoY membership expansion signals durable demand for Omada’s chronic-care programs. Large, sticky employer/plan customers and rising multi-condition penetration create recurring revenue that supports sustained scale and sales leverage.
Negative Factors
Residual Unprofitability / Cash Durability
Despite 2025 and Q1 improvements, historical multi-year cash burn (2022–2024) and remaining GAAP losses mean profitability and free cash flow consistency are unproven. If growth or margin improvement stalls, equity returns remain negative and the firm could need more capital to sustain expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Membership Growth
Rapid topline growth combined with a >1M member base and 51% YoY membership expansion signals durable demand for Omada’s chronic-care programs. Large, sticky employer/plan customers and rising multi-condition penetration create recurring revenue that supports sustained scale and sales leverage.
Read all positive factors
Omada Health, Inc. (OMDA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$979.12M
Dividend YieldN/A
Average Volume (3M)1.07M
Price to Earnings (P/E)―
Beta (1Y)2.23
Revenue Growth49.36%
EPS Growth83.76%
CountryUS
Employees849
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-0.11
Shares Outstanding59,448,505
10 Day Avg. Volume1,731,037
30 Day Avg. Volume1,072,977
Financial Highlights & Ratios
PEG Ratio0.97
Price to Book (P/B)4.01
Price to Sales (P/S)3.54
P/FCF Ratio54.46
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue2.72
Enterprise Value/Gross Profit4.11
Enterprise Value/Ebitda-575.73
Forecast
1Y Price Target
$23.30Price Target Upside64.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)0.07
Revenue Forecast (FY)$326.51M
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
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Omada Health, Inc. Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed strong growth and improving financial health: double-digit revenue growth (42% YoY), a key membership milestone (1.025M members, +51% YoY), margin expansion (GAAP 62%, non-GAAP 64%), positive adjusted EBITDA in Q1 and an upward revision to full-year guidance. Commercial momentum was highlighted by relationships with all three large PBMs and inclusion in Optum Rx and Lilly programs, alongside differentiated clinical evidence for the GLP-1 Care Track. Near-term headwinds are mostly transitional or tactical — cohort composition pressuring blended revenue per member, early-stage nature of some prescribing channels with material revenue expected more in 2027, modest device/shipping cost pressure (~$1M) and competitive multi-vendor PBM environments. Overall, the positives materially outweigh the manageable near-term challenges.Positive Updates
Strong Revenue Growth and Raised Guidance
Revenue of $78 million in Q1 2026, up 42% year-over-year. Company raised full-year revenue guidance to $322M–$330M (from $312M–$322M); midpoint implies ~25% growth year‑over‑year.
Negative Updates
Near-Term Pressure on Blended Revenue per Member
A larger share of members are now in year 2+ of enrollment, which by design places near-term pressure on blended revenue per member (revenue steps down in years 2–3) even though gross margin per member increases as cohorts mature.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth and Raised Guidance
Revenue of $78 million in Q1 2026, up 42% year-over-year. Company raised full-year revenue guidance to $322M–$330M (from $312M–$322M); midpoint implies ~25% growth year‑over‑year.
Read all positive updates
Company Guidance
Omada raised full‑year revenue guidance to $322–$330 million (prior $312–$322M) and adjusted EBITDA to $14–$20 million (prior $7–$15M) — at the midpoints implying ~25% revenue growth year‑over‑year and nearly a 3x improvement in adjusted EBITDA versus 2025, with the low end of the new ranges roughly at the prior high end. The raise follows a strong Q1: revenue $78M (+42% YoY; +6% sequential ex a $2M one‑time Q4 item), GAAP gross profit $49M with GAAP gross margin 62% (64% non‑GAAP), adjusted EBITDA $1M (up $5M YoY), GAAP net loss narrowed to $3M, total members 1.025M (+51% YoY; +139k net adds), cash $212M and no debt. Management attributed the outlook to improved retention and multi‑condition mix, PBM/GLP‑1 commercial momentum, AI‑driven efficiency (and a path to exceed their 70% long‑term gross margin target), while flagging an estimated ~$1M full‑year device shipping cost impact from geopolitical disruptions.Omada Health, Inc. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 283.30M | 260.21M | 169.80M | 122.78M | 89.19M |
| Gross Profit | 187.60M | 170.94M | 102.88M | 69.97M | 42.79M |
| EBITDA | -1.34M | -4.75M | -37.83M | -58.36M | -63.99M |
| Net Income | -6.30M | -12.78M | -47.14M | -67.51M | -72.52M |
Balance Sheet | |||||
| Total Assets | 302.80M | 305.41M | 150.89M | 175.08M | 221.80M |
| Cash, Cash Equivalents and Short-Term Investments | 211.76M | 222.04M | 76.39M | 115.64M | 168.12M |
| Total Debt | 0.00 | 0.00 | 30.19M | 30.58M | 30.81M |
| Total Liabilities | 68.68M | 75.73M | 86.26M | 76.16M | 66.19M |
| Stockholders Equity | 234.12M | 229.68M | 64.63M | 98.92M | 155.60M |
Cash Flow | |||||
| Free Cash Flow | 21.45M | 16.93M | -38.04M | -52.66M | -71.70M |
| Operating Cash Flow | 22.54M | 18.25M | -34.18M | -49.74M | -68.98M |
| Investing Cash Flow | -6.14M | -5.83M | -3.86M | -2.92M | -2.72M |
| Financing Cash Flow | 135.97M | 133.22M | -1.21M | 179.00K | 16.32M |
Omada Health, Inc. Risk Analysis
Omada Health, Inc. disclosed 82 risk factors in its most recent earnings report. Omada Health, Inc. reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We have a history of net losses, and we may not be able to consistently achieve or maintain profitability in the future. Q1, 2026
2.
We have a limited operating history and have grown significantly in a short period of time. If we fail to manage our growth effectively, our business could be materially and adversely affected. Q1, 2026
3.
We operate in a very competitive industry, and if we fail to compete successfully against our existing or potential competitors, some of whom may have greater resources than us, our business, financial condition, results of operations, and prospects could be materially and adversely affected. Q1, 2026
Omada Health, Inc. Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $979.12M | ― | -2.81% | ― | 49.36% | 83.76% | |
73 Outperform | $4.23B | 21.58 | -138.70% | ― | 49.78% | -484.05% | |
72 Outperform | $846.69M | 142.74 | 3.31% | ― | -1.19% | -21.87% | |
71 Outperform | $2.99B | 208.37 | 0.01% | ― | 24.72% | 35.79% | |
56 Neutral | $1.15B | ― | -12.37% | ― | -1.50% | 83.75% | |
55 Neutral | $129.66M | ― | -35.14% | ― | -9.29% | 46.89% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.