0001628280-26-015637
SEC filingOmada Health's 53% revenue growth and 65.7% gross margin highlight scaling efficiency, with operating loss narrowing by 73% and positive operating cash flow.
Omada Health describes itself as a virtual care platform that delivers personalized, human-led, technology-enabled chronic condition management. The company's mission is to bend the curve on disease progression, and it differentiates through its Compassionate Intelligence model—combining proactive Care Teams with data-driven tools and AI. As of December 31, 2025, Omada had over 2,000 customers, more than 886,000 enrolled members, and had supported nearly two million members since launch.
The filing does not define formal reporting segments but organizes offerings into three program groups: Cardiometabolic Programs, Omada GLP-1 Care Track, and Omada for MSK. Revenue share by segment is not disclosed.
Omada's Cardiometabolic Programs include Omada for Prevention & Weight Health, Omada for Diabetes, Omada for Hypertension, and Omada for Cholesterol (first commercial launch expected in 2026, broad launch in 2027). The Omada GLP-1 Care Track supports members on GLP-1 therapies, with an Enhanced version offering additional resources and a new prescribing capability for anti-obesity medications. Omada for MSK provides virtual physical therapy. Key technology platforms include the member-facing mobile and web applications, the Care Team Platform, and AI tools like OmadaSpark (AI meal tracking agent), Meal Map (nutrition insights), and computer vision for MSK form analysis.
Omada follows a business-to-business-to-consumer model, selling directly to employers, health plans, PBMs, and health systems, as well as through channel partners. The company has dedicated Employer and Partner Sales Teams, along with Customer Experience and Partner Management teams. Typical members incur no copays for cardiometabolic programs; MSK members may have cost-sharing. Omada reports a three-year average customer retention rate of over 90% and customer satisfaction rates above 90%. No single customer concentration is mentioned.
The filing notes a rapidly evolving competitive landscape with direct competitors including Hello Heart, Lark, Livongo (Teladoc), Onduo, Vida Health, Virta Health for cardiometabolic programs, and Hinge Health and SWORD Health for MSK. Some competitors offer both. Additionally, healthcare providers, large technology companies, and AI-native startups pose competitive threats. Key competitive factors include clinical evidence, member engagement, platform functionality, GLP-1 support, and AI capabilities.
Omada's growth strategy centers on expanding covered lives, improving enrollment effectiveness, and driving engagement. Strategic pillars include offering multiple products across diverse end markets, deepening relationships with employers/health plans/PBMs, leveraging technology (including AI) for personalization and efficiency, and demonstrating clinical outcomes through peer-reviewed research and third-party accreditations (e.g., CDC, ADCES, NCQA, URAC).
As of December 31, 2025, Omada employed 916 full-time employees, none unionized. The company was certified as a Great Place to Work in 2023, 2024, and 2025. Its culture is mission-driven and remote-first, with core values including Cultivate Trust, Seek Context, Act Boldly, Deliver Results, Succeed Together, and Remember Why We're Here.
For the year ended December 31, 2025, Omada Health reported total revenue of $260.2 million, a 53% increase from $169.8 million in 2024. Services revenue grew 53% to $241.0 million, primarily driven by a 52% increase in average total members and higher average fees per member. Hardware revenue rose 60% to $19.2 million, reflecting a 55% increase in total members and associated device shipments.
Gross profit increased 66% to $170.9 million, and gross margin expanded 5.1 percentage points to 65.7%. Margin improvement was attributed to lower personnel costs per member from Care Team efficiency initiatives and expanded use of supporting technologies.
Operating expenses totaled $182.9 million, up 25% from $146.5 million, but grew slower than revenue. Research and development expenses increased 13% to $40.7 million, sales and marketing rose 32% to $90.0 million (driven by channel partner fees and personnel), and general and administrative expenses increased 23% to $52.2 million (driven by IPO-related costs and personnel). As a result, operating loss narrowed to $12.0 million from $43.7 million. Net loss improved to $12.8 million from $47.1 million.
Other expense, net, was $0.8 million, including $2.5 million interest expense (down 44% due to debt extinguishment), $5.3 million interest income (up 559% from IPO proceeds), and a $2.1 million loss on debt extinguishment related to the repayment of the MidCap facilities.
Omada does not report formal operating segments; however, services revenue comprised 93% of total revenue, with hardware contributing 7%. Services revenue growth was driven by member expansion across cardiometabolic and musculoskeletal programs. The company's member base grew to 886,000 as of December 31, 2025, up 55% from 572,000 a year earlier. Hardware revenue growth aligned with new member enrollment.
Revenue concentration remained high: Partner A and Partner B (affiliates of The Cigna Group) accounted for 32% and 33% of revenue in 2025, respectively, up from 36% and 19% in 2024. Combined, these two partners represented 65% of revenue. Channel partner and customer retention are key to maintaining revenue momentum.
Management's outlook emphasizes continued investment in growth, including R&D, sales, and marketing, while selectively enhancing the platform. The company expects seasonality, with higher new member enrollment in the first and second quarters, leading to increased costs and lower gross margins in those periods. The evolving GLP-1 market presents an opportunity; Omada has introduced GLP-1 companion programs and prescribing capabilities.
Liquidity is strong following the June 2025 IPO, which generated $151.6 million in net proceeds. The company believes its current cash and cash equivalents of $222.0 million will fund operations for at least the next 12 months. No specific numerical guidance was provided for future periods. The company remains an emerging growth company and plans to leverage its scale to drive further operating leverage.
As of December 31, 2025, Omada Health held $222.0 million in cash and cash equivalents, with zero long-term debt following the full repayment of the MidCap Term Facility ($31.0 million) and Revolving Facility in July 2025. Total stockholders’ equity was $229.7 million, a significant improvement from a deficit of $384.4 million a year earlier, driven by IPO proceeds and conversion of preferred stock. Inventory was $4.5 million, and deferred revenue (current) stood at $25.1 million. The company maintains a strong liquidity position with no near-term debt maturities.
Total non-cancellable purchase commitments as of December 31, 2025 were $8.6 million, primarily for technology and cloud services. The schedule shows $5.3 million due within one year (2026), $2.5 million in 2027, and $0.8 million in 2028. No commitments extend beyond 2028. The company leases were fully settled during the year, with no remaining operating lease liabilities.
No share repurchases or dividends were declared or paid. The company fully extinguished its outstanding debt, resulting in a loss on debt extinguishment of $2.1 million. Capital expenditures totaled $5.8 million, comprising $1.3 million for property and equipment and $4.5 million for capitalized internal-use software, representing 2.24% of revenue. The company also completed its initial public offering in June 2025, raising net proceeds of $151.6 million.
Omada operates as a single reportable segment offering cardiometabolic and musculoskeletal virtual care programs. The CODM uses consolidated net loss to assess performance and allocate resources. All revenue is earned in the United States, and all long-lived assets are located in the U.S. No further segment disaggregation is provided. The company did not disclose segment-level operating income or margins.
Omada faces significant regulatory risks across healthcare, privacy, and AI. Changes in federal or state healthcare laws, such as modifications to Medicare or Medicaid, could affect program eligibility and pricing. The rapidly evolving AI regulatory landscape, including executive orders and state laws like California's CCPA and Colorado's AI Act, may impose compliance costs and limit AI use. Geopolitical tensions, particularly with China, where most devices are manufactured, expose the company to tariffs and supply disruptions.
Omada has a history of net losses, though they narrowed to $12.8M in 2025. Revenue is highly concentrated: two health plan/PBM partners contributed 65% of revenue in 2025. The company relies on performance guarantees tied to clinical outcomes, which could trigger repayments. A material weakness in internal controls remains unremediated. The long and unpredictable sales cycle, combined with high upfront costs for customer acquisition and devices, strains cash flow.
The virtual care market is competitive and evolving. Competitors include established digital health firms (Livongo, Hinge Health) and AI-native startups. Omada's success depends on demonstrating clinical outcomes and cost savings; failure could reduce market acceptance. The expansion into GLP-1 prescribing introduces risks from negative publicity, adverse drug events, and potential regulatory backlash. Customer concentration and seasonality add volatility.
Cybersecurity risks are prominent due to the handling of PHI. Past incidents (e.g., MOVEit breach at Delta Dental, Change Healthcare attack) highlight vulnerabilities. Omada's reliance on third-party cloud infrastructure (AWS) and device connectivity magnifies disruption risks. AI tools like OmadaSpark introduce risks of biased outputs, data leakage, and regulatory scrutiny. The company's proprietary technology may contain defects, leading to member harm or contractual claims.
Device supply is concentrated among a few manufacturers, most in China. Trade protection measures or shipping disruptions could delay member onboarding. The company depends on cellular network providers and external partners for complementary services (e.g., prescriptions, physical therapy). Managing growth—especially scaling Care Teams—poses operational challenges, including unionization risks and talent retention in a competitive market.
The cash flow statement excerpt was not included in the input. Only the auditor report, balance sheets, and income statement were provided. Therefore, no analysis of cash flows can be performed.