Omada Health, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 6 August 2026: press release. Guidance figures: 2 raised. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose 43% to $88 million: Revenue was $88 million, up 43% from $61 million a year earlier. Source
• Net income of $5 million reported: Net income was $5.3 million against a net loss of $5.3 million a year earlier; diluted EPS was $0.08 against $(0.24). Operating income was $3.5 million against an operating loss of $4.3 million. Source
• Adjusted EBITDA reached $11 million: Adjusted EBITDA was $10.8 million, a 12% margin, against an adjusted EBITDA loss of $0.2 million a year earlier. Six-month adjusted EBITDA was $11.7 million against a loss of $4.4 million. Source
• Total members grew 45%: Total members rose 45% year over year, following 51% growth reported for the first quarter, when members passed 1.02 million. Source
• Gross margin rose to 73%: GAAP gross margin was 73%, up from 66%; non-GAAP gross margin was 74%, up from 68%. Source
• Six-month free cash flow negative $11.0M: Free cash flow for six months was negative $11.0 million against negative $15.8 million; operating cash use was $7.8 million against $13.3 million. Source

“Our outstanding second quarter reflects the strength of our strategy, the momentum we've built across the business, and the exceptional team driving Omada forward,”

Sean Duffy, co-founder and CEO of Omada Health

Guidance

What changed from last quarter

• Guidance raised: 2026 revenue range raised from $322 million to $330 million to $334 million to $340 million. Source
• Guidance raised: 2026 adjusted EBITDA range raised from $14 million to $20 million to $21 million to $27 million. Source
• New: Wei-Li Shao becomes CEO and Sean Duffy becomes Founder and Executive Chair, both effective January 1, 2027. Source
• New: Jeri Hilleman, Chairperson of the Board since July 2020, becomes Lead Independent Director and stays Audit Committee chair. Source
• New: HCSC partnership broadened to Prevention & Weight Health and Hypertension Management in Illinois, Oklahoma and New Mexico, adding 1.5 million covered lives. Source
• New: Cholesterol management offering launched in July with first deployment for employees of a large retailer. Source
• New: First customer closed under the prescribing program, expected to yield revenue in 2027. Source

Results and growth drivers

• Revenue rose 43% to $88 million: Revenue was $88 million, up 43% from $61 million a year earlier. Source
• Net income of $5 million reported: Net income was $5.3 million against a net loss of $5.3 million a year earlier; diluted EPS was $0.08 against $(0.24). Operating income was $3.5 million against an operating loss of $4.3 million. Source
• Adjusted EBITDA reached $11 million: Adjusted EBITDA was $10.8 million, a 12% margin, against an adjusted EBITDA loss of $0.2 million a year earlier. Six-month adjusted EBITDA was $11.7 million against a loss of $4.4 million. Source
• Quarter set several company records: Management said the quarter set quarterly records for revenue, GAAP and non-GAAP gross margin, net income and adjusted EBITDA. Source

Services and hardware revenue

• Services revenue reached $80.7 million: Services revenue was $80.7 million against $57.0 million. Services revenue included $51.4 million from a related party, against $36.5 million a year earlier. Source
• Hardware cost exceeded hardware revenue: Hardware revenue was $7.1 million against $4.4 million, while hardware cost of revenue was $10.4 million against $8.4 million. Source
• Services cost of revenue rose modestly: Services cost of revenue was $13.6 million against $12.7 million a year earlier. Source

“This marks Omada Health’s most profitable quarter to date, both in absolute terms and on a margin basis, demonstrating continued operating leverage,”

Steve Cook, Chief Financial Officer of Omada Health

Members, channels and demand

• Total members grew 45%: Total members rose 45% year over year, following 51% growth reported for the first quarter, when members passed 1.02 million. Source
• Revenue per member up about 2%: Trailing twelve-month revenue per total member was $284, up about 2% year over year. Source
• Growth tied to channels and PBMs: Management attributed member growth to expanded commercial channels and deeper PBM relationships, alongside its cholesterol management launch with a large retailer. Source

Margins and operating expenses

• Gross margin rose to 73%: GAAP gross margin was 73%, up from 66%; non-GAAP gross margin was 74%, up from 68%. Source
• Operating expenses fell as share of revenue: GAAP operating expenses were 69% of revenue against 73% a year earlier; non-GAAP operating expenses were 62% against 68%. Source
• Sales, marketing and G&A ratios narrowed: Non-GAAP sales and marketing was 32% of revenue against 35%, and non-GAAP G&A was 15% against 18%. Non-GAAP R&D held at 15%. Source
• Share-based compensation rose: Share-based compensation expense was $5.6 million against $2.8 million a year earlier. Source

“Our results serve as a foundation to raise our ambitions. Now is the time to scale, push harder on our mission, and bend the curve of chronic disease.”

Wei-Li Shao, President of Omada Health

Cash flow and balance sheet

• Six-month free cash flow negative $11.0M: Free cash flow for six months was negative $11.0 million against negative $15.8 million; operating cash use was $7.8 million against $13.3 million. Source
• Cash held near $222 million: Cash and cash equivalents were $221.7 million at June 30, 2026, against $222.0 million at December 31, 2025 and $211.8 million at March 31, 2026. Source
• Receivables rose to $56.6 million: Accounts receivable reached $56.6 million from $34.6 million at year-end, with $40.4 million owed by a related party. Deferred revenue was $27.7 million. Source
• Capitalized software spend increased: Capitalized internal-use software costs were $3.0 million for six months against $1.9 million; purchases of property and equipment were $0.2 million. Source

Share count and equity

• Diluted shares averaged 63.9 million: Weighted-average diluted shares were 63.9 million in the quarter against 22.0 million a year earlier; 60.6 million shares were outstanding at June 30, 2026. Source
• Option exercises brought in $11.4 million: Proceeds from exercise of stock options were $11.4 million for six months against $3.9 million; taxes paid on net share settlement were $0.7 million. Source

People and leadership background

• Shao joined in 2019, President since 2021: Wei-Li Shao joined Omada Health in 2019 as Chief Commercial Officer and was appointed President in 2021, with direct accountability for the P&L and operating agenda. Source
• Shao brings 18 years from Eli Lilly: Shao held 18 years at Eli Lilly and Company in senior leadership roles, including experience in cardiometabolic and diabetes markets. Source
• Co-founders worked together seven years: Duffy said he and Shao have worked together for seven years, with Shao's scope of responsibility steadily increasing over that period. Source

Coming up, as management said on 6 August 2026

• Investor Day on September 10, 2026: Investor Day in New York City, where management will present vision, strategy and long-term growth plans. Source

Figures management reported

Earlier plans management reported on

• Not stated: Management said Shao built the long-range plan that guides how the company runs today. Source

Other quarters

• Q3 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.