Omada Health Inc(US:OMDA)2025-11-07 21:04Financial 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]