Omada Health Inc(OMDA) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Performance Highlights Omada Health reported strong Q2 2025 results with 49% revenue growth to $61 million and 52% member growth, significantly narrowing net and Adjusted EBITDA losses while improving gross margin Q2 2025 Key Financial Metrics (YoY Comparison) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $61 million | $41.2 million | +49% | | Total Members | 752,000 | ~495,000 | +52% | | Gross Margin | 66% | 60% | +6 p.p. | | Non-GAAP Gross Margin | 68% | 63% | +5 p.p. | | Net Loss | $(5) million | $(11) million | Improved by 55% | | Adjusted EBITDA Loss | $(0.2) million | $(6.8) million | Improved by 97% | - The company's performance was driven by tailwinds in cardiometabolic care and the effective commercialization of its GLP-1 Care Track[3] - Omada announced a new AI-agent, OmadaSpark, designed to deliver real-time motivational interviewing and nutrition education to members, highlighting its focus on leveraging artificial intelligence[4] Financial Outlook and Corporate Developments The company issued its financial outlook for the full year ending December 31, 2025, projecting revenue between $235 million and $241 million, and strengthened its balance sheet by fully repaying its outstanding term loan and revolving line of credit in July 2025 Full Year 2025 Financial Outlook | Metric | Guidance Range | | :--- | :--- | | Revenue | $235 million to $241 million | | Adjusted EBITDA Loss | $9 million to $5 million | - On July 31, 2025, Omada fully repaid its term loan facility and revolving line of credit, totaling approximately $31.4 million in principal and accrued interest, which will reduce future interest expense and eliminate related debt covenants[7] Financial Statements This section details the company's financial position, operational results, and cash flows via consolidated statements Consolidated Balance Sheets As of June 30, 2025, Omada's balance sheet shows substantial liquidity growth, with cash and cash equivalents rising to $223.1 million from $76.4 million due to IPO proceeds, doubling total assets to $303.0 million while liabilities remained stable Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $223,146 | $76,392 | | Total current assets | $271,105 | $113,059 | | Total assets | $302,971 | $150,892 | | Total current liabilities | $57,988 | $53,953 | | Total liabilities | $88,757 | $86,261 | | Total stockholders' equity (deficit) | $214,214 | $(384,403) | Consolidated Statements of Operations For Q2 2025, total revenue increased 49% to $61.4 million, with gross profit growing 62% to $40.3 million, significantly narrowing operating and net losses to $4.3 million and $5.3 million respectively, reflecting improved operational leverage Q2 Statement of Operations Highlights (in thousands, except per-share data) | Account | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total revenue | $61,371 | $41,212 | +49% | | Gross profit | $40,306 | $24,834 | +62% | | Total operating expenses | $44,650 | $34,871 | +28% | | Operating loss | $(4,344) | $(10,037) | +57% | | Net loss | $(5,311) | $(10,692) | +50% | | Net loss per share | $(0.24) | $(1.40) | +83% | Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash used in operating activities improved to $13.3 million, with financing activities providing $162.5 million from the IPO, resulting in a net cash increase of $146.8 million - The company received $160.5 million in net proceeds from its initial public offering during the first six months of 2025[24] Six-Month Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(13,260) | $(28,748) | | Net cash used in investing activities | $(2,499) | $(1,826) | | Net cash provided by (used in) financing activities | $162,513 | $(898) | | Net increase (decrease) in cash | $146,754 | $(31,472) | | Cash at end of period | $223,146 | $84,171 | Non-GAAP Financial Measures and Reconciliations This section reconciles GAAP to non-GAAP financial measures, providing insights into the company's operational performance Reconciliation of GAAP to Non-GAAP Measures This section details the reconciliation from GAAP to non-GAAP metrics, showing Adjusted EBITDA loss significantly improved to $0.2 million in Q2 2025, non-GAAP gross margin expanded to 67.7%, and free cash flow outflow improved to $15.8 million for the first six months Reconciliation of GAAP Net Loss to Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | GAAP net loss | $(5,311) | $(10,692) | | Adjusted EBITDA | $(161) | $(6,786) | | Adjusted EBITDA margin | (0.3)% | (16.5)% | Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | GAAP gross profit | $40,306 | $24,834 | | Non-GAAP gross profit | $41,564 | $25,894 | | GAAP gross margin | 65.7% | 60.3% | | Non-GAAP gross margin | 67.7% | 62.8% | Reconciliation of Net Cash to Free Cash Flow (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(13,260) | $(28,748) | | Free Cash Flow | $(15,759) | $(30,574) |