Omada Health, Inc. (OMDA) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. Omada Health, Inc. is a digital health company providing virtual care programs for cardiometabolic conditions (prediabetes, diabetes, hypertension, cholesterol), musculoskeletal (MSK) conditions, and GLP-1 support. As of June 30, 2026, the company reported approximately 1.091 million total members enrolled in its programs. The company operates as an emerging growth company and completed its IPO in June 2025.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Total Revenue | $87.8 million | $61.4 million | $165.9 million | $116.3 million |
| Gross Profit | $63.8 million | $40.3 million | $112.5 million | $72.2 million |
| Gross Margin | 73% | 66% | 68% | 62% |
| Operating Income (Loss) | $3.5 million | $(4.3) million | $(1.2) million | $(12.7) million |
| Net Income (Loss) | $5.3 million | $(5.3) million | $2.3 million | $(14.8) million |
| Cash and Equivalents | $221.7 million (as of June 30, 2026) | |||
| Working Capital | $219.4 million (as of June 30, 2026) | |||
| Accumulated Deficit | $454.4 million (as of June 30, 2026) |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 43% year-over-year for both the quarter and the six-month period, driven by a 48% increase in average total members and expansion of programs to existing customers.
- Profitability: The company achieved net income of $5.3 million in Q2 2026, compared to a net loss of $5.3 million in Q2 2025. This turnaround was driven by gross margin expansion and reduced interest expense.
- Gross Margin Expansion: Gross margin improved by 7 percentage points to 73% in Q2 2026, attributed to Care Team efficiency initiatives and technology adoption that lowered personnel costs per member.
- Interest Expense: Interest expense decreased by 99% to $14,000 in Q2 2026 following the full repayment of the MidCap Term Facility and Revolving Facility in July 2025 using IPO proceeds.
- Operating Expenses: Operating expenses increased 35% year-over-year to $60.2 million, primarily due to increased headcount in R&D and Sales & Marketing to support growth.
Guidance, Outlook, and Risks
- Outlook: Management expects to continue investing in R&D and sales to support long-term growth. The company believes its current cash position is sufficient to fund operations for at least the next 12 months.
- Seasonality: The business typically sees higher sales closures in Q2 and Q3 aligning with benefits enrollment, leading to higher enrollment and associated costs in Q1 and Q2.
- Material Weakness: The company disclosed a material weakness in internal control over financial reporting related to inadequate formalized processes for the financial close and reporting. Management is implementing a remediation plan, but controls were deemed not effective as of June 30, 2026.
- Customer Concentration: Revenue is highly concentrated. Two affiliates of The Cigna Group (Partner A and Partner B) accounted for approximately 64% of total revenue in Q2 2026.
- Regulatory & Market Risks: Risks include evolving regulations on AI in healthcare, potential changes in GLP-1 coverage strategies by payers, and the competitive landscape of digital health.
Investor Verification Checklist
- Verify the sustainability of the 73% gross margin given the increase in hardware costs and tariffs mentioned in the filing.
- Assess the impact of the material weakness in internal controls on future financial reporting reliability and potential restatements.
- Monitor the concentration risk associated with The Cigna Group affiliates, which represent the majority of revenue and accounts receivable.
- Review the progress of the remediation plan for the internal control material weakness in subsequent filings.
- Confirm the trajectory of member engagement rates and clinical outcomes, as these directly impact revenue recognition and potential performance-based repayments.