Omada Health (OMDA) Earnings

Management highlights

• Q1 2026 was a milestone quarter with 42% revenue growth, lower net loss, positive adjusted EBITDA, higher gross margin, and guidance raise. • Business driven by four growth levers: expanding reach, increasing enrollment, deepening engagement, and operational efficiency. • Crossed 1 million total members in Q1 2026, with strong growth across cardiometabolic suite. • Made meaningful strides in commercial progress, including relationships with top pharmacy benefit managers and new employer customers. • AI is showing up across the business in structural ways, improving care delivery, engineering, and operations. • Evidence base includes 30 peer-reviewed studies and third-party accreditations, differentiating clinical capabilities.

Guidance

Raised full-year revenue guidance to $322 million to $330 million, up from prior range of $312 million to $322 million. For adjusted EBITDA, expects a range of $14 million to $20 million, up from prior range of $7 million to $15 million. The raise reflects continued commercial momentum and sustained enrollment effectiveness.

Segment performance

Revenue was $78 million, up 42% year-over-year. GAAP gross profit was $49 million in Q1, representing a GAAP gross margin of 62%, up from 58% in Q1 2025. On a non-GAAP basis, gross margin was 64%, up from 60% in Q1 2025. Total members grew 51% year-over-year to 1,025,000 in Q1 2026. Adjusted EBITDA was $1 million in Q1 2026, an improvement of $5 million year over year.

Risks & headwinds

Minor impact from conflict in Iran on device-related cost of revenue, estimated full year impact at roughly $1 million. Actual results could differ materially from forward-looking statements due to various risk and uncertainties listed in press release and SEC filings.

Analyst Q&A

• Q: GLP-1 developments are moving fast, and you outlined a bunch of these. Can you just touch on where you're seeing the most interest from current and prospective customers?

  A: In terms of where the market is moving as it relates to interest from customers for GLP-1s, we're really seeing it kind of spread fairly evenly across the spectrum...

• Q: Just on the PBM partnerships you've announced, obviously ESI is furthest along, but I'd love to understand what's similar or leverageable from one PBM relationship to another?

  A: In general, if you're referring to the go-to-market motion with each of the PBMs, if that's the question, I would say in general the approach is similar directionally...

• Q: I'm curious on the Lilly announcement, direct to employer, how that specifically works. What's the, I guess, program offering you're offering?

  A: The Lilly Direct Program is for the employers that do not cover GLP-1s. And so it's a similar category as our GLP-1 Flex Care, and so it offers the chance for those employers to give their employees something...

• Q: Steve, I wanted just to come back to your commentary around pricing. And I don't know if the right metric is revenue per member. Is that a metric that are you suggesting is going to be flat over time?

  A: For some of the prepared remarks, this is really the output of two features in the business that we actually believe to be beneficial. The first of that group, we're just improving churn, and we're having members stay with us longer into their second, their third, and even their fourth year of Amada tenure...

• Q: Maybe Steve, just going back to your comments again, just on the member curves and how revenue and margins develop is the enrollment cohort, I'm sure. Just to make sure I understand, you said revenue declines in year two, but gross margins go up. If we think about that in terms of of gross profit dollars on a per member basis. How do the absolute dollars per member compare in year two to year one?

  A: So gross margins are going up in year two. The absolute gross profit dollars do go down on a total basis because we're just recognizing overall less revenue as those folks go into their more mature years, going to the second, third, and fourth year in aggregate...

• Q: Building on some of the prior questions that were asked, on your last call, you decomposed gross margin as a combination of multi-condition mix and care team labor optimization. Earlier, you mentioned the potential to go beyond the 70% long-term gross margin target. Is that mainly coming from the condition mix or labor optimization, or is it sort of a mix of both?

  A: You got two of the three. So we're obviously really happy with the Q1 results. 64% non-GAAP gross margin is the highest in the company's history. So we have direct near-term site into hitting our long-term target of 70% plus on an annualized basis. And we are going to be conducting our investor day later this year in September in New York, where we likely will revisit our long-term gross margin target and potentially lift it from there. The only other one that you missed was AI...

• Q: Hi, you have Carly on for Saket. Thanks for taking our question here. Shawn or Weili, maybe for you, I'd love to touch on some of the AI-related solutions you've developed, like the Nutritional AI Assistant and Meal Map, which I think you've embedded into your programs. What kind of feedback have you gotten from customers and users so far?

  A: Thank you for the question. It's such an exciting moment in software. And stating the obvious, the software velocity in the code creation at Omada has certainly increased. And our customers are deriving value from that and our ability to create more new things for them...

• Q: Yes, hi. Thanks for taking my questions. Maybe going back to OptumRx first, I'd love for you to elaborate on the scope of this partnership. I'm curious, are there any other vendors besides Omada offering similar solutions here?

  A: Regarding OptumRx, kind of a little bit more detail around that and your question about are there any other vendors. There are two others that were preexisting inside the waiting gauge. OptumRx program, and that makes this obviously the third edition there, too, as well...

• Q: Thanks for taking my questions. Congrats on a nice quarter. Whaley, maybe first for you. As you think about the new OptumRx program and the Lilly direct-to-employer program, I think, as you mentioned before, you're not sort of the only vendor within these programs. So as you join them, can you just talk about sort of the allocation of resources from a go-to-market and a marketing perspective?

  A: Yeah, great question. And maybe I'd frame it this way, is that you've heard Sean and I talk about our portfolio strategy for GLP-1s as it relates to benefit design solution options for the employer. That's really the strategy to get the share of voice and the mind share of employers...

• Q: Thanks for taking my questions. Congrats on a nice quarter. Whaley, maybe first for you. As you think about the new OptumRx program and the Lilly direct-to-employer program, I think, as you mentioned before, you're not sort of the only vendor within these programs. So as you join them, can you just talk about sort of the allocation of resources from a go-to-market and a marketing perspective?

  A: Yeah, great question. And maybe I'd frame it this way, is that you've heard Sean and I talk about our portfolio strategy for GLP-1s as it relates to benefit design solution options for the employer. That's really the strategy to get the share of voice and the mind share of employers...

• Q: Good afternoon, and congrats on the good start to the year. A lot of good information here. Did you call out how many total members are now on GLP-1s, and do you break that out across your original care track versus the new FlexCare pathway? And then my follow-up on that would just be Can you or would you provide an update on your cholesterol program and whether that's still targeted for availability next year?

  A: We disclosed just by way of reminder to folks that through the end of 2025, we had brought in a total membership around 150,000 or so. We've not yet disclosed Q1 in terms of at the product level offering, which includes, of course, our GLP-1 care track. We're likely to do so each year from an annual standpoint. But suffice it to say, the momentum and frothiness of the GLP-1 marketplace continues. In terms of cholesterol program...