Omada Health (NASDAQ:OMDA) Releases Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Omada Health (NASDAQ:OMDA) issued its quarterly earnings data on Thursday. The company reported $0.08 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.02) by $0.10, Zacks reports. Omada Health had a return on equity of 2.67% and a net margin of 1.39%.The business had revenue of $87.83 million during the quarter, compared to analyst estimates of $80.93 million.

Here are the key takeaways from Omada Health’s conference call:

• Record Q2 performance: Revenue rose 43% year over year to $88 million, while GAAP gross margin expanded to 73%, net income reached $5 million, and adjusted EBITDA rose to $11 million.
• Omada ended the quarter with approximately 1.1 million members, up 45% year over year, supported by broad growth across diabetes, hypertension, GLP-1, prevention, and weight-health programs. Members also remained in active treatment nearly 10% longer, while cost of revenue per member declined more than 10%.
• Commercial momentum remains strong, including new employer wins, expanding PBM channels, a cholesterol launch with a major retailer, and an HCSC expansion covering an additional 1.5 million lives that is expected to begin contributing revenue in the first half of 2027.
• Management raised full-year 2026 guidance to $334 million-$340 million of revenue and $21 million-$27 million of adjusted EBITDA, citing Q2 strength and visibility into the second half.
• CEO and co-founder Sean Duffy will become Executive Chair on January 1, 2027, with President Wei-Li Shao succeeding him as CEO; management characterized the transition as planned and emphasized continuity, while noting that second-half revenue growth and EBITDA margins will moderate because of seasonality and ongoing investments.

Omada Health Stock Up 21.1%

Shares of OMDA stock traded up $4.13 during trading on Friday, reaching $23.67. The company’s stock had a trading volume of 4,921,462 shares, compared to its average volume of 1,319,150. Omada Health has a one year low of $10.28 and a one year high of $26.92. The business has a fifty day moving average price of $20.36 and a 200-day moving average price of $16.20. The company has a market cap of $1.41 billion, a price-to-earnings ratio of 473.40 and a beta of 1.73.

Wall Street Analyst Weigh In

Several brokerages have commented on OMDA. Morgan Stanley restated an “overweight” rating and set a $30.00 target price on shares of Omada Health in a report on Monday, June 22nd. Canaccord Genuity Group increased their price objective on shares of Omada Health from $24.00 to $28.00 and gave the stock a “buy” rating in a research report on Tuesday, July 21st. Citizens Jmp raised their price objective on shares of Omada Health from $21.00 to $27.00 and gave the stock a “market outperform” rating in a report on Monday, July 20th. BMO Capital Markets reaffirmed an “outperform” rating and issued a $24.00 price objective on shares of Omada Health in a research report on Friday. Finally, Evercore reaffirmed an “outperform” rating and issued a $20.00 target price on shares of Omada Health in a research note on Friday, May 8th. Eleven analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $25.25.

Key Omada Health News

Here are the key news stories impacting Omada Health this week:

• Positive Sentiment: Second-quarter results exceeded expectations: Omada reported revenue of approximately $87.8 million, above the $80.9 million consensus estimate. Adjusted earnings per share also surpassed forecasts, with reports citing approximately $0.08 to $0.15 per share versus expectations ranging from a loss of $0.02 to $0.05. Results improved from a year-earlier loss. Omada Health quarterly earnings report
• Positive Sentiment: Growth remained strong: Second-quarter revenue rose 43% year over year, while total members increased 45%. Omada also achieved a record quarterly gross margin, supporting the case that operating leverage and scale are improving. Omada Health second-quarter results
• Positive Sentiment: 2026 revenue guidance was raised or reaffirmed above consensus: Omada projected full-year revenue of $334 million to $340 million, exceeding the approximately $327.2 million analyst estimate. The outlook signals continued demand for its virtual chronic-care platform. Omada Health revenue outlook
• Neutral Sentiment: Leadership transition announced: Co-founder and CEO Sean Duffy will become executive chair on January 1, 2027, while President Wei-Li Shao is scheduled to become CEO. The planned, internal succession may provide continuity, although investors could monitor execution under the new leadership. Omada Health CEO transition
• Negative Sentiment: CEO stock sale adds a modest overhang: Duffy sold 12,944 shares for approximately $264,000, reducing his direct position by 3.05%. The sale occurred before the earnings release and may be routine, but insider selling can temper sentiment.

Insider Activity at Omada Health

In other Omada Health news, CFO Steven L. Cook sold 33,000 shares of the business’s stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $19.89, for a total transaction of $656,370.00. Following the sale, the chief financial officer directly owned 133,359 shares of the company’s stock, valued at $2,652,510.51. The trade was a 19.84% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CAO Craig Gracey sold 6,894 shares of the stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $17.42, for a total transaction of $120,093.48. Following the transaction, the chief accounting officer owned 9,191 shares of the company’s stock, valued at approximately $160,107.22. This represents a 42.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 206,406 shares of company stock valued at $4,191,483. Corporate insiders own 6.38% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Perceptive Advisors LLC bought a new stake in Omada Health during the second quarter worth $44,402,000. Millennium Management LLC grew its position in shares of Omada Health by 1,195.0% in the 4th quarter. Millennium Management LLC now owns 2,272,168 shares of the company’s stock valued at $35,855,000 after acquiring an additional 2,096,705 shares during the period. Bienville Capital Management LLC grew its position in shares of Omada Health by 167.3% in the 4th quarter. Bienville Capital Management LLC now owns 742,033 shares of the company’s stock valued at $11,709,000 after acquiring an additional 464,391 shares during the period. Vanguard Group Inc. increased its stake in shares of Omada Health by 642.8% during the 3rd quarter. Vanguard Group Inc. now owns 482,790 shares of the company’s stock worth $10,674,000 after purchasing an additional 417,790 shares during the last quarter. Finally, JPMorgan Chase & Co. increased its stake in shares of Omada Health by 10,806.3% during the 4th quarter. JPMorgan Chase & Co. now owns 404,297 shares of the company’s stock worth $6,380,000 after purchasing an additional 400,590 shares during the last quarter.

About Omada Health

Omada Health is a digital health company that specializes in the prevention and management of chronic conditions through personalized, technology-driven programs. The company’s platform combines data analytics, behavioral science and human coaching to support individuals at risk for or living with conditions such as prediabetes, type 2 diabetes, hypertension and musculoskeletal disorders. Participants access the program via a mobile app or web portal, where they receive tailored curriculum, feedback on health metrics and ongoing virtual coaching.

In addition to its core disease-management offerings, Omada Health has expanded its services to include mental health support and digital therapeutics for weight management.