Omada Health, Inc. (OMDA) · Nov 5, 2026 · Earnings
Beat — Revenue $91.3M vs ~$87.4M consensus; diluted EPS $0.10 vs ~$0.03 GAAP consensus
Omada Health earnings beat revenue expectations, while stronger margins and execution drive a sharp increase in full-year adjusted EBITDA guidance.
Omada is scaling a virtual-first chronic-care platform across diabetes, hypertension, weight management and related conditions, with national partners and enrollment growth supporting a longer-term profitability push. Before this filing, management had already raised 2026 guidance after a strong second quarter and set long-term targets of at least 20% annual revenue growth, 80% non-GAAP gross margin and 30% adjusted EBITDA margin.
The quarter cleared an already-raised bar. Revenue reached $91.3 million, up 34% year over year, versus published consensus of roughly $87.4 million; diluted GAAP EPS was $0.10 versus a published estimate near $0.03. The filing also reports 1.1 million members, up 36%, and a 76% GAAP gross margin. 〔0〕
| Metric | Q3 2026 | Q3 2025 | Consensus / prior guide |
|---|---|---|---|
| Revenue (Income Statement) | $91.3M (+34%) | $68.0M | ~$87.4M |
| Diluted EPS (Income Statement) | $0.10 | $(0.06) | ~$0.03 |
| GAAP gross margin (Non-GAAP reconciliation) | 76% | 66% | |
| Adjusted EBITDA (Adjusted EBITDA reconciliation) | $12.4M | $2.4M | |
| Adjusted EBITDA margin (Adjusted EBITDA reconciliation) | 14% | 4% | |
| FY2026 adjusted EBITDA guidance (Outlook) | $32M–$34M | $21M–$27M prior guide |
The more important signal is the profitability upgrade. Omada lifted full-year adjusted EBITDA guidance to $32 million–$34 million from $21 million–$27 million, a much larger increase than a routine quarterly update. Q3 adjusted EBITDA reached $12.4 million, while nine-month adjusted EBITDA was already $24.1 million, showing that the improvement is coming from actual operating leverage rather than only a more optimistic narrative.
Growth is still being converted into better economics. Revenue growth remained strong, gross margin expanded to 76% from 66% a year earlier, and operating income turned positive at $4.8 million versus a $2.5 million loss. The company also generated $2.5 million of free cash flow in the first nine months versus negative $7.6 million a year earlier, although the balance-sheet improvement includes $20.0 million of proceeds from stock-option exercises rather than only internally generated cash.
The remaining question is durability, not near-term execution. Omada is still investing heavily in sales and marketing, research and development and general administration, while its long-term 30% adjusted EBITDA margin target remains far above the current 14% quarterly margin. The filing therefore materially strengthens the profitable-growth story, but does not by itself prove that the current margin trajectory can reach the long-term target.
Bottom line: This was more than a clean quarterly beat: Omada delivered faster growth, positive GAAP operating income and a substantial EBITDA guidance increase. It advances the company’s core story from “scaling toward profitability” to “scaling with profitability already visible.”
CEO transition to Wei-Li Shao, January 1, 2027
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