Omada Health Q4 FY2025 earnings call

1. 2025 was a milestone year: became public company, 53% revenue growth, achieved GAAP profitability in Q4. 2. Highlighted segments: total members up 55% y/y, Q4 revenue up 58%, full-year revenue up 53% to 260M. Gross margins at record levels. 3. Mission: bend the curve of obesity-related disease. 4. Expanded into multi-conditioned platform covering weight health, diabetes, hypertension, etc. 5. Made progress with AI: embedded AI throughout, launched Omada Spark, enhanced Meal Map. 6. Commercial success: closed significant additional covered lives, contracts in second half of 2025. 7. 2026 plans: maintain focus on pillars, expand capabilities, balance growth and profitability towards 20% plus percent adjusted EBITDA margins.

Total members reached 886,000 at year end, up 55% compared to 2024. Revenue grew 58% in Q4 and 53% for the full year to 260 million. Gross margins expanded to record levels. Achieved first quarter of positive gap net income in Q4 at 5 million, and positive full year adjusted EBITDA of 6 million. Revenue from weight health program grew more than 50%, and revenue from diabetes and hypertension programs grew at rates of 45% or more year over year.

Expect 2026 revenue in the range of $312 million to $322 million (midpoint 22% growth over 2025). Expect 2026 adjusted EBITDA in the range of $7 million to $15 million (midpoint $5 million increase from 2025). Guidance based on 886,000 exit members, historical enrollment conversion and engagement trends, no material improvement assumed for enrollment conversion rates, and no material contributions from new products like GLP-1 prescribing, GLP-1 FlexCare, or cholesterol program in guidance.

Q: David Roman with Goldman Sachs asked about guidance assumptions and January-February tracking.

A: Steve and Wade Lee responded on guidance basis, historical trends, and January-February tracking.

Q: Sean Dodge with BMO Capital Markets asked about GLP-1 FlexCare program mechanics and marketing efficiencies.

A: Sean and Wei Li responded on FlexCare program and marketing efficiencies.

Q: Craig Hettenbach with Morgan Stanley asked about AI insulation and hypertension/diabetes program traction.

A: Sean and Wei Li responded on AI insulation and hypertension/diabetes program traction.

Q: Ryan McDonald with Needham & Company asked about 2026 guidance and program mix.

A: Steve and Wei Li responded on 2026 guidance and program mix.

Q: Elizabeth Anderson with Evercore ISI asked about gross margins and GLP-1 FlexCare.

A: Steve responded on gross margins and GLP-1 FlexCare.

Q: Stan Berenstein with Wells Fargo asked about retention dynamics and new products.

A: Wei Li responded on retention dynamics and new products.

Q: Richard Close with Canaccord Genuity asked about GLP prices and new programs' ARPU.

A: Sean and Steve responded on GLP prices and new programs' ARPU.

Q: Carly Becker with Barclays asked about program adoption curves.

A: Sean and Wei Li responded on program adoption curves.