Revenue accelerated 43.1% year-over-year to $87.8M in Q2 2026, with gross margin expanding to 72.6% and operating margin turning positive at 4.0%, though SBC of $5.6M exceeded net income of $5.3M.
Omada Health (OMDA) annual income statement — 4-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 |
|---|
| Sales/Revenue | 309.76M | 260.21M | 169.8M | 122.78M | 89.19M |
| Revenue Growth % | - | 53.24% | 38.29% | 37.67% | - |
| Cost of Goods Sold | 98.55M | 89.27M | 66.92M | 52.81M | 46.39M |
| COGS % of Revenue | - | 34.31% | 39.41% | 43.01% | 52.02% |
| Gross Profit | 211.21M | 170.94M | 102.88M | 69.97M | 42.79M |
| Gross Margin % | 68.19% | 65.69% | 60.59% | 56.99% | 47.98% |
| Gross Profit Growth % | - | 66.16% | 47.03% | 63.52% | - |
| Operating Expenses | 211.68M | 182.91M | 146.53M | 135.97M | 115.14M |
| OpEx % of Revenue | - | 70.29% | 86.3% | 110.74% | 129.1% |
| Selling, General & Admin | 125.13M | 142.23M | 110.61M | 102.23M | 88.97M |
| SG&A % of Revenue | - | 54.66% | 65.14% | 83.26% | 99.76% |
| Research & Development | 37.22M | 40.68M | 35.92M | 33.74M | 26.17M |
| R&D % of Revenue | - | 15.63% | 21.16% | 27.48% | 29.34% |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 |
| Operating Income | -464K | -11.97M | -43.65M | -66M | -72.35M |
| Operating Margin % | -0.15% | -4.6% | -25.71% | -53.75% | -81.12% |
| Operating Income Growth % | - | 72.58% | 33.85% | 8.78% | - |
| EBITDA | 6.94M | -6.48M | -38.85M | -61.55M | -68.02M |
| EBITDA Margin % | 2.24% | -2.49% | -22.88% | -50.13% | -76.27% |
| EBITDA Growth % | - | 83.32% | 36.88% | 9.51% | - |
| D&A (Non-Cash Add-back) | 7.4M | 5.49M | 4.8M | 4.45M | 4.33M |
| EBIT | 4.35M | -10.24M | -42.63M | -62.81M | -68.32M |
| Net Interest Income | 7.09M | 2.77M | -3.7M | 1.07M | -2M |
| Interest Income | 7.49M | 5.3M | 805K | 5.78M | 2.2M |
| Interest Expense | 398K | 2.53M | 4.51M | 4.71M | 4.2M |
| Other Income/Expense | 4.77M | -806K | -3.48M | -1.51M | -168K |
| Pretax Income | 4.3M | -12.78M | -47.14M | -67.51M | -72.52M |
| Pretax Margin % | 1.39% | -4.91% | -27.76% | -54.98% | -81.31% |
| Income Tax | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% |
| Net Income | 4.3M | -12.78M | -47.14M | -67.51M | -72.52M |
| Net Margin % | 1.39% | -4.91% | -27.76% | -54.98% | -81.31% |
| Net Income Growth % | - | 72.89% | 30.18% | 6.9% | - |
| Net Income (Continuing) | 4.3M | -12.78M | -47.14M | -67.51M | -72.52M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.07 | -0.22 | -0.85 | -1.21 | -1.30 |
| EPS Growth % | - | 74.12% | 29.75% | 6.92% | - |
| EPS (Basic) | - | -0.22 | -0.85 | -1.21 | -1.30 |
| Diluted Shares Outstanding | 63.95M | 58.43M | 55.74M | 55.74M | 55.74M |
| Basic Shares Outstanding | 59.69M | 58.43M | 55.74M | 55.74M | 55.74M |
| Dividend Payout Ratio | - | - | - | - | - |
Quick answers to the most common questions about buying OMDA stock.
For fiscal year 2025, Omada Health (OMDA) reported total revenue of $260.2M. This represents a 191.8% increase compared to $89.2M in 2022.
Omada Health (OMDA) reported a net loss of $12.8M for the fiscal year ending 2025.
Omada Health (OMDA) reported an operating income of $-12.0M, resulting in an operating profit margin of -4.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Omada Health (OMDA) generated $170.9M in gross profit for the year, representing a gross profit margin of 65.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
GLP-1 disruption and margin sustainability
Metrics are mathematically derived from official filings.
Accelerating Growth Amidst Scaling Challenges
Omada's revenue surged 43.1% year-over-year to $87.8M in Q2 2026, with sequential acceleration from 42.0% in Q1, indicating robust demand for its digital health programs.
The 43.1% growth rate in Q2 2026, up from 42.0% in Q1, suggests the company is gaining commercial momentum, likely driven by expansion into MSK and behavioral health. However, the sustainability of this growth depends on member enrollment rates and the ability to convert covered lives into active participants, as revenue is tied to PMPM fees. Investors should monitor whether growth can be maintained as the company scales its multi-condition platform.
Gross Margin Expansion Signals Pricing Power
Gross margin improved to 72.6% in Q2 2026 from 62.4% in Q1, reflecting better cost management and a favorable mix shift, though still below pure SaaS peers.
The 10.2 percentage point sequential gross margin improvement is notable, suggesting that Omada is achieving better operating efficiency as it scales. This may indicate that the company is leveraging its platform to reduce variable costs, possibly through automation of coaching functions. However, the human-in-the-loop model likely caps gross margins below the 80%+ seen in pure software companies, and investors should watch for any margin compression as GLP-1 integration costs emerge.
Operating Leverage Emerging as Losses Narrow
Operating margin swung to positive 4.0% in Q2 2026 from -6.1% in Q1, driven by revenue growth outpacing expense growth, though R&D and SG&A remain elevated.
The transition to a positive operating margin is a critical inflection point, suggesting that Omada is beginning to scale efficiently. Revenue grew 12.6% sequentially while total operating expenses grew at a slower pace, indicating that the company is gaining operating leverage. However, the sustainability of this leverage is uncertain given the need for continued investment in clinical staff and technology to support growth.
Net Income Positive but SBC Clouds Quality
Net income turned positive at $5.3M in Q2 2026, but stock-based compensation of $5.6M exceeded net income, suggesting reported profitability is partly non-cash.
While the positive net income is a milestone, the fact that SBC ($5.6M) is larger than net income ($5.3M) indicates that the company's cash earnings are still negative. This suggests that the reported profitability is not yet translating into cash generation, and investors should adjust for SBC to assess true earnings power. The lack of EPS data for Q2 (actual vs. estimate) adds uncertainty to the bottom-line quality.
R&D and SG&A Efficiency Improving
R&D and SG&A as a percentage of revenue fell to 16.6% and 51.9% in Q2 2026, respectively, from 18.9% and 57.3% in Q1, indicating improved cost discipline.
The sequential decline in both R&D and SG&A intensity suggests that Omada is managing its cost structure more efficiently as it scales. However, the absolute dollar amounts remain high, reflecting the need to invest in product development and sales to sustain growth. The company's ability to maintain this discipline while expanding into new clinical areas will be key to achieving sustained profitability.
Q2 2026 Marks Turning Point to Profitability
Q2 2026 was a pivotal quarter, with operating income turning positive at $3.5M and net income at $5.3M, reversing prior losses and signaling a potential break-even trajectory.
The shift from a -$4.8M operating loss in Q1 2026 to a +$3.5M profit in Q2 represents a significant operational inflection, driven by strong revenue growth and margin expansion. This suggests that Omada may be approaching the scale needed to achieve sustainable profitability, but the durability of this inflection depends on whether the company can maintain growth rates and control costs. The raised guidance for the full year adds confidence, but the lack of EPS data warrants caution.
What Could Invalidate the Base Case
Despite strong growth, the sustainability of Omada's profitability is questionable given that SBC exceeds net income and the rapid adoption of GLP-1 drugs could disrupt its behavioral model.
Short-sellers might argue that the positive net income in Q2 2026 is flattered by non-cash items, as SBC of $5.6M exceeds net income of $5.3M, implying a cash loss. Additionally, the company's heavy reliance on employer-sponsored insurance makes it vulnerable to economic downturns that reduce covered lives. The rise of GLP-1 medications could also undermine the need for Omada's coaching programs, potentially pressuring margins and growth. Investors should monitor whether the company can adapt its offerings to remain relevant in a drug-first weight loss environment.