Cash generation remains inconsistent, as evidenced by the operating cash flow to net income ratio of 3.98 in 2026Q1 and significant working capital outflows of $16.3 million.
| Cash from Operations | 22.54M | 18.25M | -34.18M | -49.74M | -68.98M |
| Operating CF Margin % | - | 7.01% | -20.13% | -40.51% | -77.34% |
| Operating CF Growth % | 26.58% | 153.4% | 31.28% | 27.89% | - |
| Net Income | -6.3M | -12.78M | -47.14M | -67.51M | -72.52M |
| Depreciation & Amortization | 6.61M | 5.49M | 4.8M | 4.45M | 4.33M |
| Stock-Based Compensation | 10.78M | 12.96M | 9.42M | 8.74M | 6.65M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 30.95M | 8.85M | 5.3M | 6.08M | 1.7M |
| Working Capital Changes | -1.57M | 3.74M | -6.57M | -1.5M | -9.14M |
| Change in Receivables | -12.07M | -12.36M | -8.8M | -5.34M | -3.93M |
| Change in Inventory | -789K | -1.19M | 318K | -74K | -1.95M |
| Change in Payables | 3.52M | 6.29M | 399K | -286K | -4.99M |
| Cash from Investing | -6.14M | -5.83M | -3.86M | -2.92M | -2.72M |
| Capital Expenditures | -2.06M | -1.32M | -596K | -416K | -720K |
| CapEx % of Revenue | 0.73% | 0.51% | 0.35% | 0.34% | 0.81% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | -4.08M | -4.51M | -3.27M | -2.5M | -2M |
| Cash from Financing | 135.97M | 133.22M | -1.21M | 179K | 16.32M |
| Debt Issued (Net) | 1.43M | -30.96M | 0 | 963K | -1.27M |
| Equity Issued (Net) | 170.14M | 169.9M | 3.33M | 1.75M | 16.32M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -35.6M | -5.71M | -4.54M | -2.54M | 1.27M |
| Net Change in Cash | 152.37M | 145.64M | -39.25M | -52.48M | -55.38M |
| Free Cash Flow | 21.45M | 16.93M | -38.04M | -52.66M | -71.7M |
| FCF Margin % | 7.57% | 6.51% | -22.4% | -42.89% | -80.4% |
| FCF Growth % | - | 144.5% | 27.76% | 26.56% | - |
| FCF per Share | 0.36 | 0.29 | -0.68 | -0.94 | -1.29 |
| FCF Conversion (FCF/Net Income) | -3.40x | -1.43x | 0.73x | 0.74x | 0.95x |
| Interest Paid | 0 | 0 | 3.85M | 4.09M | 3.61M |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
According to recent financial disclosures, Omada's operating cash flow to net income ratio reached 3.98 in 2026Q1, illustrating a significant disconnect between accounting profitability and actual cash generation that warrants close scrutiny from investors evaluating the sustainability of the company's current growth trajectory.
The wide variance between net income and operating cash flow suggests that non-cash adjustments and accrual timing are heavily influencing reported results. Investors should monitor whether this divergence is a temporary byproduct of rapid scaling or a structural feature of the company's performance-based revenue recognition model.
As reported in quarterly filings, Omada's free cash flow margin swung from a positive 27.9% in 2025Q4 to a negative 15.3% in 2026Q1, highlighting the inherent difficulty in maintaining consistent cash generation while managing the high-touch operational requirements of a digital health platform.
This volatility suggests that the company's cash flow profile is highly sensitive to seasonal billing cycles and the timing of large enterprise contract renewals. The inability to sustain positive free cash flow indicates that the business remains in a capital-intensive growth phase rather than a mature cash-harvesting stage.
Based on the provided cash flow statements, working capital changes were a primary driver of liquidity, with a $16.3 million outflow in 2026Q1 following a $10.4 million inflow in 2025Q4, suggesting that the company's cash position is heavily dependent on the timing of client payments.
The sharp reversal in working capital suggests that Omada may be experiencing delays in collections or significant fluctuations in deferred revenue recognition. Such swings imply that the company's liquidity is vulnerable to the payment terms of its large employer-sponsored insurance partners.
As indicated by the reported figures, Omada maintains a low capital intensity, with CapEx to revenue ratios consistently below 2.0% across the last six quarters, suggesting that the company's primary investments are directed toward human capital and software development rather than physical infrastructure.
This low level of capital expenditure indicates that the business model is inherently scalable from a hardware perspective, provided the company can manage its coaching personnel costs. Investors should monitor whether this low spending level is sufficient to maintain the platform's competitive edge against better-funded incumbents.
Quick answers to the most common questions about buying OMDA stock.
Omada Health (OMDA) generated $18.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Omada Health (OMDA) generated $16.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Omada Health (OMDA) spent $1.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.