Omada Health FY Conference Summary Company Overview - **Company**: Omada Health (NasdaqGS:OMDA) - **Industry**: Health Care Services and Technology - **Recent Event**: IPO over the summer of 2025, indicating strong market interest and performance [2][3][5] Core Business Model - Omada Health operates as a "between-visit care provider," focusing on chronic disease management [5][9] - The business model involves charging self-insured employers, fully insured plans, and integrated systems a monthly membership fee for comprehensive services [9][10] - The mission is to improve health outcomes and reduce costs through persistent longitudinal care [5][9] New Service Offerings - Introduction of the **GLP-1 Care Track** aimed at supporting weight loss for members on therapy, showing a 28% increase in weight loss outcomes [18][19] - The service is designed to help members optimize medication use and reduce waste, addressing employer concerns about medication costs and effectiveness [19][20] Financial Insights - The monthly fee structure will increase if clients opt for the prescribing capability, which is expected to be accretive to revenue and margins [24][25] - Long-term targets include achieving over 20% operating margins while maintaining growth [31] Market Dynamics - Anticipated that the GLP-1 prescribing care track will contribute to the P&L primarily in 2027, with some potential deployments in 2026 [37] - The selling season for 2026 is characterized by strong interest from employers, with a mix of those willing to cover medications and those unable to afford them [39][42] AI Integration - Omada is leveraging AI technologies to enhance member engagement and operational efficiency, with tools like Omada Spark and Meal Map [49][50] - AI is seen as a means to improve care team efficiency and increase revenue per user (ARPU) while maintaining quality of care [53][54] Strategic Partnerships - Collaboration with telehealth partners for medication prescriptions to streamline operations and enhance member experience [32][36] - Positive feedback from channel partners like CVS, indicating a gradual build-up of trust and client acquisition [47] Future Outlook - Omada aims to maximize the benefits of new medications and technologies through integrated care solutions, positioning itself as a leader in the health tech space [57] - The company is focused on product innovation and expanding its service offerings to meet diverse employer needs [57][58]

Core Insights - Omada Health will participate in the 8th Annual Evercore Healthcare Conference on December 3, 2025, with a fireside chat scheduled for 1:20 pm ET [1] Company Overview - Omada Health is a virtual healthcare provider focusing on cardiometabolic conditions such as diabetes, hypertension, prediabetes, and obesity, as well as musculoskeletal issues [2] - The company employs a unique approach called Compassionate Intelligence, which integrates human-led care teams, connected devices, and AI technology to deliver personalized care at scale [2] Performance and Reach - With over a decade of experience, Omada Health has published 30 peer-reviewed studies demonstrating its clinical and economic outcomes [3] - The company has served over one million members and has partnered with more than 2,000 customers, including health plans, health systems, and employers from small businesses to Fortune 500 companies [3] - Omada's evidence-based approach has led to multiple healthcare accreditations and industry recognition [3] Value Proposition - As a trusted partner in the healthcare ecosystem, Omada Health aims to improve health outcomes while managing healthcare costs effectively [4]

Core Insights - QKS Group has recognized Omada as a Technology Leader and Emerging Innovator in the Q4 2025 SPARK Matrix for Identity Governance and Administration (IGA) [1][5] - The SPARK Matrix provides a comprehensive analysis of market dynamics, trends, vendor landscape, and competitive positioning in the IGA sector [1][5] Company Overview - Omada is a global leader in Identity Governance and Administration, offering a cloud-native IGA solution that enhances compliance, reduces risk, and maximizes operational efficiency [3] - Founded in 2000, Omada specializes in innovative identity management solutions tailored for complex hybrid environments [3] Technology and Innovation - Omada's platform integrates cloud-native architecture with near-real-time governance intelligence, utilizing an event-driven architecture and AI assistant Javi to improve compliance and decision-making [2] - The company's secure Cloud Application Gateway and BYOK (Bring Your Own Key) support enhance trust and make it a preferred choice for organizations seeking agility without sacrificing governance integrity [2] Market Positioning - Omada's recognition by QKS Group validates its vision of modern identity governance, which balances agility and control for enterprises navigating complex digital ecosystems [2] - The company aims to deliver IGA solutions that adapt to the rapid pace of change while ensuring compliance with regulatory requirements [2]

Financial Performance - Total revenue for Q3 2025 reached $68.03 million, a 49.5% increase from $45.52 million in Q3 2024[23] - Services revenue was $62.94 million in Q3 2025, up 49.5% from $42.10 million in Q3 2024[23] - Gross profit for Q3 2025 was $45.07 million, compared to $28.56 million in Q3 2024, reflecting a gross margin improvement[23] - The net loss for Q3 2025 was $3.18 million, significantly reduced from a loss of $9.23 million in Q3 2024[23] - Revenue for the nine months ended September 30, 2025, increased by 51% to $184.4 million from $121.8 million in 2024[125] - Total revenue increased by $22.5 million, or 49%, for the three months ended September 30, 2025, compared to the same period in 2024, and by $62.5 million, or 51%, for the nine months ended September 30, 2025[166] Cash and Liquidity - Cash and cash equivalents increased to $198.63 million as of September 30, 2025, up from $76.39 million at the end of 2024[19] - The company believes its current cash and cash equivalents will be sufficient to fund operations for at least the next 12 months[207] - As of September 30, 2025, the company had cash and cash equivalents of $198.6 million and working capital of $184.8 million[206] Assets and Liabilities - Total assets grew to $287.47 million as of September 30, 2025, compared to $150.89 million at the end of 2024[20] - Total liabilities decreased to $70.12 million as of September 30, 2025, down from $86.26 million at the end of 2024[20] - Stockholders' equity improved to $217.35 million as of September 30, 2025, compared to a deficit of $384.40 million at the end of 2024[20] Operating Expenses - Research and development expenses for Q3 2025 were $10.30 million, an increase from $8.85 million in Q3 2024[23] - General and administrative expenses increased to $14,340,000 for the three months ended September 30, 2025, from $10,659,000 in 2024[163] - Sales and marketing expenses increased by $15.5 million, or 31%, for the nine months ended September 30, 2025, compared to the same period in 2024[186] Debt and Financing - The company entered into a MidCap Credit Agreement for a senior secured term loan of up to $60.0 million, with $30.0 million available at initial closing and an additional $30.0 million contingent on achieving $120.0 million in trailing 12-month revenue[72] - The effective interest rate for the MidCap Term Facility was 40.6% for the three months ended September 30, 2025, compared to 14.5% for the same period in 2024[74] - The company completed its IPO on June 9, 2025, raising gross proceeds of $172.6 million from the sale of 9,085,000 shares at $19.00 per share[212] Member Enrollment and Programs - Total members enrolled in one or more programs reached over 831,000 as of September 30, 2025[120] - Omada has served over one million members since its inception, indicating significant growth potential in member enrollment[138] - The company launched its initial diabetes prevention program in 2012 and has since expanded to include multiple chronic conditions[119] Losses and Adjustments - The company incurred a net loss of $17.9 million for the nine months ended September 30, 2025, adjusted for $21.5 million in non-cash adjustments[216] - The company incurred a loss on debt extinguishment of $2,109,000 during the nine months ended September 30, 2025[34] - The accumulated deficit as of September 30, 2025, was $461.9 million[207] Share-Based Compensation - Total share-based compensation expense for the nine months ended September 30, 2025, was $9.21 million, up from $7.11 million in the same period of 2024, indicating a 29.6% increase[100] - The 2025 Equity Incentive Plan reserves 5,045,541 shares for stock-based compensation, with an annual increase starting in 2026 capped at 15,136,624 shares for incentive stock options[96]

For the quarter ended September 2025, Omada Health, Inc. (OMDA) reported revenue of $68.03 million, representing no change compared to the same period last year. EPS came in at $0.02, compared to $0 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $61.15 million, representing a surprise of +11.25%. The company delivered an EPS surprise of +120%, with the consensus EPS estimate being -$0.10.While investors closely watch year-over-year changes in headline numbers -- rev ...

Financial Data and Key Metrics Changes - Total members increased by 53% year over year to 831,000, with revenue growing by 49% year over year to $68 million [4][22] - GAAP gross margin reached 66%, while non-GAAP gross margin was at 68%, both showing significant improvement from the previous year [4][23] - The net loss was reduced to $3 million compared to $9 million in Q3 2024, marking a notable improvement in financial performance [4][24] - For the first time, the company achieved a positive adjusted EBITDA of $2 million, compared to a loss of $5 million in Q3 2024 [4][24] Business Line Data and Key Metrics Changes - The GLP-1 CareTrack program has been a significant driver of growth, reflecting strong demand and multi-condition adoption [11][22] - The company reported that 75% of new customers opted for multiple Omada programs, indicating the appeal of its integrated multi-condition platform [12] Market Data and Key Metrics Changes - The company has seen healthy activity in the current selling season, with early sales traction through a large new channel partner, representing an estimated 180,000 individuals [11] - The demand for GLP-1 offerings has been a key factor in the company's growth, with significant interest from employers and health plans [6][22] Company Strategy and Development Direction - The company plans to invest in GLP-1 offerings and AI technologies, aiming to enhance its solutions and widen its competitive moat [9][25] - The strategic focus is on delivering integrated care that combines clinical services with behavioral support, addressing the complexities of medication management [6][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential for growth in 2026 and beyond, driven by innovations in GLP-1 therapies and AI integration [9][10] - The company aims to achieve sustained profitability while continuing to invest in key areas that can enhance its service offerings [25] Other Important Information - The company published its 30th peer-reviewed manuscript, demonstrating the effectiveness of its programs in reducing medical costs and improving health outcomes [18][19] - The company ended Q3 with cash and cash equivalents of $199 million, down from $223 million in Q2 2025, primarily due to debt repayment [25] Q&A Session Summary Question: Can you discuss the new GLP-1 prescribing initiative? - Management highlighted that the new prescribing capability will be integrated within the Omada Care program, allowing members to fulfill prescriptions at their chosen pharmacy [30][31] Question: What investments are needed to launch this new offering? - Management indicated that investments will be required across engineering, product, sales, and marketing to support the new prescribing functionality [39] Question: How is the selling season progressing? - Management noted that they are seeing strong multi-product penetration and healthy activity in the selling season, with double-digit volume deal growth year over year [40] Question: How does GLP-1 drive growth in the overall portfolio? - Management stated that while GLP-1 CareTrack contributes to growth, the majority of new members still come from non-GLP-1 offerings, reflecting a successful multi-product sales strategy [76]

Financial Performance & Growth - Total member growth reached 53%, increasing from 543,000 in Q3 2024 to 831,000 in Q3 2025[14] - Revenue grew by 49%, from $455 million in Q3 2024 to $680 million in Q3 2025[14] - Non-GAAP Gross Profit increased by 56%, from $297 million in Q3 2024 to $464 million in Q3 2025, with Gross Margins at 652% and 682% respectively[14] - Net loss improved by $6 million, decreasing from $(92) million in Q3 2024 to $(32) million in Q3 2025[14] - Adjusted EBITDA grew by $75 million, increasing from $(51) million in Q3 2024 to $24 million in Q3 2025[14] Business Model & Customer Base - The company has over 2,000 customers[16, 134] and a customer retention rate of over 90%[16, 134] - Over 20 million individuals have benefits coverage for one or more programs[16, 80] - The company's revenue model is recurring, tied to member success, and billable through payer claims for certain customers[16, 18] Market Opportunity & GLP-1 Strategy - The total current addressable market is estimated at $414 billion for prediabetes, $173 billion for diabetes, $316 billion for hypertension, and $448 billion for musculoskeletal conditions[24] - Enhanced GLP-1 Care Track members experienced 28% greater weight loss compared to members not enrolled in the track over the first 16 weeks[101] - Enhanced GLP-1 Care Track members maintained weight loss at 16 weeks post-discontinuation, with an average weight change of 08%[100, 101]

Core Insights - Omada Health is launching a new prescribing capability for anti-obesity medications (AOM), including GLP-1s, as part of its weight health program, following a 53% year-over-year member growth as of Q3 [1][2] Group 1: New Offerings and Capabilities - The new prescribing capability aims to provide tailored support throughout the member journey, from prescription to ongoing medication management [2][3] - Omada's approach combines behavioral intelligence with clinical eligibility and health metrics to enhance prescribing decisions and care plans [2][3] - The new capability will be available in all 50 states, allowing for a nationally scalable model to support employers in managing AOM spend and outcomes [3][4] Group 2: Clinical Effectiveness and Outcomes - Omada's Enhanced GLP-1 Care Track has shown a 28% greater weight loss on average at 4 months compared to standard care [5] - Members in Omada's GLP-1 Care Track maintained an average weight change of just 0.8% 12 months post-medication discontinuation, significantly better than the typical 11-12% weight gain seen in clinical trials [5] Group 3: Strategic Positioning and Market Context - The launch aligns with the broader access to GLP-1 medications and reflects a shift in focus from access to effective and safe usage for long-term outcomes [2] - Omada Health aims to address challenges faced by payers and employers in obesity management by combining prescription capabilities with lifestyle support [4]

Core Insights - Omada Health reported a revenue of $68 million for Q3 2025, representing a 49% increase year-over-year, with total members reaching 831,000, a 53% growth compared to Q3 2024 [1][7][8] - The company achieved a significant reduction in net loss, reporting a net loss of $3 million compared to $9 million in Q3 2024, and recorded its first quarter of positive adjusted EBITDA at $2 million [1][8] - Omada announced a new GLP-1 prescribing offering aimed at enhancing member health outcomes and providing cost savings for customers [1][7][8] Financial Performance - Revenue for Q3 2025 was $68 million, up 49% from $45.5 million in Q3 2024 [7][8] - Gross margin improved to 66%, up from 63% in the same quarter last year, with a non-GAAP gross margin of 68% [8] - Adjusted EBITDA was reported at $2 million, a significant improvement from an adjusted EBITDA loss of $5 million in Q3 2024 [8] Member Growth and Offerings - Total members increased to 831,000, marking a 53% growth compared to the previous year [7] - The new GLP-1 prescribing offering will integrate Omada's behavior change program with medication management for anti-obesity medications [7] - The company published its 30th peer-reviewed manuscript, demonstrating cost savings from its Joint & Muscle Health program and showing that members largely maintained their weight one year after discontinuing GLP-1 therapy [7] Cash Position and Financial Outlook - Cash and cash equivalents stood at $199 million as of September 30, 2025 [8] - For the full year 2025, Omada expects revenue in the range of $251.5 million to $254.5 million, an increase from the previous range of $235 million to $241 million [8]

Financial Performance - Revenue for Q3 2025 was $68 million, representing a 49% increase compared to Q3 2024[1] - Total revenue for Q3 2025 reached $68,030,000, a 49.5% increase from $45,515,000 in Q3 2024[18] - Services revenue was $62,936,000, up 49.5% from $42,096,000 year-over-year[18] - Gross profit for Q3 2025 was $45,071,000, compared to $28,562,000 in Q3 2024, reflecting a gross margin improvement[18] - Net loss reduced to $3 million, down from $9 million in Q3 2024[5] - Net loss for the nine months ended September 30, 2025, was $(17,937,000), an improvement from $(38,887,000) in the same period of 2024[23] - Adjusted EBITDA was $2 million, compared to an adjusted EBITDA loss of $5 million in Q3 2024[5] - Adjusted EBITDA for Q3 2025 was $2,383,000, compared to $(5,135,000) in Q3 2024, indicating a positive shift[32] - Free cash flow for the nine months ended September 30, 2025, was $(7,613,000), an improvement from $(30,586,000) in the same period of 2024[35] Membership Growth - Total members reached 831,000, marking a 53% growth year-over-year[4] - Total members enrolled in virtual care programs increased, driving services revenue growth[30] Cash and Cash Equivalents - Cash and cash equivalents totaled $199 million as of September 30, 2025[5] - Cash and cash equivalents at the end of Q3 2025 were $198,627,000, up from $83,735,000 at the end of Q3 2024[23] Operating Expenses - Operating loss narrowed to $(2,513,000) in Q3 2025 from $(8,524,000) in Q3 2024[18] - Share-based compensation expense for the nine months ended September 30, 2025, was $9,210,000, compared to $7,108,000 in 2024[22] - GAAP sales and marketing expenses for Q3 2025 were $22,943,000, compared to $17,577,000 in Q3 2024, a 30% increase[34] - Non-GAAP operating expenses for the nine months ended September 30, 2025, were $123,060,000, compared to $99,866,000 in the same period of 2024, reflecting a 23% increase[34] Research and Development - Research and development expenses on a GAAP basis for Q3 2025 were $10,301,000, up from $8,850,000 in Q3 2024, marking a 16% increase[34] - Non-GAAP research and development expense as a percentage of revenue decreased to 14% in Q3 2025 from 18% in Q3 2024[34] Product and Service Innovations - The company announced a new GLP-1 prescribing offering aimed at enhancing member health outcomes[4] - Launched the Omada Meal Map, an AI-powered nutrition experience focusing on nutrient quality[4] - Published a 30th peer-reviewed manuscript demonstrating significant cost savings from the Joint & Muscle Health program[4] Revenue Guidance - Revenue guidance for 2025 is projected between $251.5 million and $254.5 million, an increase from the previous range of $235 million to $241 million[5] Cash Flow - The company reported a significant increase in operating cash flow, with net cash used in operating activities decreasing to $(3,127,000) from $(27,692,000) year-over-year[23] - Net cash provided by financing activities in the nine months ended September 30, 2025, was $129,848,000, compared to $(1,322,000) in 2024[35]