Core Viewpoint - Omada Health, Inc. reported strong financial results for the second quarter of 2025, highlighting a 49% year-over-year revenue growth and significant member growth, indicating progress towards profitability [2][4]. Financial Performance - Revenue reached $61 million, representing a 49% increase compared to the second quarter of 2024 [8]. - Total members grew to 752,000, a 52% increase year-over-year [8]. - Gross margin improved to 66%, up from 60% in the same quarter of the previous year [9]. - Non-GAAP gross margin was 68%, compared to 63% in the second quarter of 2024 [9]. - The net loss narrowed to $5 million, down from a net loss of $11 million in the second quarter of 2024 [9]. - Adjusted EBITDA loss was $0.2 million, significantly improved from a loss of $6.8 million in the same quarter of 2024 [9]. Financial Outlook - For the year ending December 31, 2025, Omada expects revenue in the range of $235 million to $241 million [9]. - Adjusted EBITDA loss is projected to be between $9 million and $5 million [9]. Debt Management - On July 31, 2025, Omada fully repaid $31.0 million in principal and $0.4 million in accrued interest under its term loan facility and revolving line of credit, ahead of schedule [6]. Product and Service Development - The company has seen success with its GLP-1 companion programs, which are now available through two of the largest pharmacy benefit managers in the U.S. [8]. - In May, Omada introduced an AI-agent named OmadaSpark, aimed at providing real-time motivational interviewing and nutrition education to members [8]. Company Background - Omada Health is a virtual-first healthcare provider focused on chronic disease management, with over a decade of experience and a wide customer base exceeding 2,000 clients [11].

Financial Data and Key Metrics Changes - The second quarter consolidated revenue was $631.9 million, down 1.6% year over year, but near the high end of the guidance range [22] - Adjusted EBITDA was $69.3 million, representing a margin of 11%, also at the upper end of the guidance range [22] - Net loss per share was $0.19 compared to a net loss of $4.92 in the previous year, which included a significant goodwill impairment charge [22] - Free cash flow was $61 million in the second quarter, slightly ahead of the prior year period [23] Business Line Data and Key Metrics Changes - Integrated Care segment revenue increased by 3.7% year over year to $391.5 million, exceeding guidance [25] - U.S. Integrated Care segment membership reached 102.4 million, up 11% year over year, while virtual visit volume increased by 6% [26] - Better Health segment revenue was $240.4 million, slightly above the midpoint of guidance, but average paying users declined by 5% year over year [27][28] Market Data and Key Metrics Changes - The international integrated care business delivered mid-teens growth on a constant currency basis, contributing to overall revenue growth [25] - The U.S. cash pay users saw a high single-digit percentage decline compared to the previous year, reflecting softening consumer sentiment [29] Company Strategy and Development Direction - The company is focused on enhancing integrated care offerings, particularly in the U.S., to drive clinical outcomes and cost efficiency [12][13] - There is an emphasis on product innovation, including the launch of WellBound and enhancements to the cardiometabolic health program [6][7] - The company aims to leverage its scale in mental health and expand insurance capabilities through BetterHelp [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to return to a growth trajectory despite broader market dynamics impacting healthcare [21] - The company is committed to maintaining a balanced approach between financial performance and investments in strategic priorities [21] - Management highlighted the importance of virtual care in addressing healthcare challenges, including affordability and access [11][12] Other Important Information - The company has retired $551 million in convertible senior notes and has a strong cash position of $618 million [23][41] - The company is making strategic investments to scale its insurance business and enhance operational capabilities [73][74] Q&A Session Summary Question: Transition from subscription to pay-per-visit model - Management indicated that over 50% of revenues in virtual care are now from visit-based arrangements, with a significant portion in mental health being around 70% [46][47] Question: Margin differences between cash pay and insurance - Management acknowledged that insurance margins would be lower than the cash pay business, but the scale of consumer demand is expected to drive conversion rates [50][51] Question: Opportunities to drive cost in healthcare - Management emphasized the importance of access to care and the potential for virtual care to complement local delivery systems [58][60] Question: Chronic Care Solutions selling season and competition - Management noted good interest in chronic care solutions, with ongoing pressure in the health plan channel but positive activity in employer channels [64][66] Question: Revenue contribution from Better Health Insurance in 2026 - Management expects insurance revenue to scale over a 6 to 12 month period, with ongoing investments needed to support this growth [72][75] Question: Overall readiness for revenue and EBITDA growth - Management believes considerable progress has been made, but acknowledges that ongoing investments and innovations are necessary to sustain growth [78][82]

Core Insights - Teladoc Health reported a consolidated revenue of $631.9 million for the second quarter of 2025, a decrease of 2% compared to $642.4 million in the same period of 2024 [5][6] - The company achieved a net loss of $32.7 million, or $0.19 per share, significantly improved from a net loss of $837.7 million, or $4.92 per share, in the second quarter of 2024 [7][12] - Adjusted EBITDA for the second quarter of 2025 was $69.3 million, down 23% year-over-year from $89.5 million [10][15] Financial Performance - Revenue breakdown: Access fees revenue decreased by 6% to $523.7 million, while other revenue increased by 31% to $108.2 million [6][33] - U.S. revenue decreased by 4% to $519.7 million, while international revenue increased by 10% to $112.2 million [6][11] - Integrated Care segment revenue increased by 4% to $391.5 million, while BetterHelp segment revenue decreased by 9% to $240.4 million [6][35] Cost and Expenses - Total costs and expenses for the second quarter of 2025 were $686.3 million, compared to $1.5 billion in the second quarter of 2024, which included a significant goodwill impairment charge [30][9] - Stock-based compensation expense was $22.3 million for the second quarter of 2025, down from $42.1 million in the same quarter of 2024 [32][9] Cash Flow and Capital Expenditures - Cash flow from operations was $91.4 million in the second quarter of 2025, compared to $88.7 million in the second quarter of 2024 [16] - Capital expenditures were $30.2 million in the second quarter of 2025, up from $27.7 million in the same period of 2024 [16] Financial Outlook - For the full year of 2025, the company expects revenue between $2.501 billion and $2.548 billion, with adjusted EBITDA projected between $263 million and $294 million [20][21] - The third quarter of 2025 outlook includes expected revenue of $614 million to $636 million and adjusted EBITDA of $56 million to $70 million [22] Strategic Initiatives - The CEO emphasized the importance of virtual care as a performance multiplier in addressing challenges in the healthcare landscape [4] - The company is focused on enhancing patient experience, improving clinical outcomes, and driving greater value for clients [4]

Core Insights - Virtual healthcare is rapidly evolving, with Hims & Hers Health, Inc. (HIMS) and Teladoc Health, Inc. (TDOC) leading the market [1][2] - HIMS focuses on affordability and personalization, while TDOC emphasizes broad clinical reach and enterprise partnerships [2] - HIMS has significantly outperformed TDOC in stock performance over the past year [3][6] Company Overview - HIMS offers a subscription-based platform for personalized treatments in sexual health, mental wellness, dermatology, and weight loss [1] - Teladoc Health provides integrated services for primary care, chronic condition management, and mental health, with over 17 million visits projected in 2024 [1] Stock Performance & Valuation - HIMS stock has increased by 165.6% over the past year, while TDOC has declined by 14.3% [3][6] - HIMS has a forward price-to-sales (P/S) ratio of 4.89, significantly above its three-year median of 2.34X, while TDOC's ratio is 0.57X, below its median of 1.02X [5] - HIMS and TDOC have Value Scores of D and B, respectively [5] Growth Drivers for Hims & Hers - HIMS has over 2.4 million subscribers, a 38.4% increase year-over-year [7] - The acquisition of ZAVA enhances HIMS' presence in Europe, providing access to over 1.3 million customers [8] - HIMS is investing in AI to improve diagnostic accuracy and reduce healthcare friction, supported by $870 million in financing [9] Growth Drivers for Teladoc Health - Teladoc's BetterHelp platform is a leader in virtual mental health care, with over 35,000 licensed clinicians [10] - The Integrated Care segment addresses complex clinical needs, increasing user engagement and revenue per member [11] - Teladoc serves over 90 million members internationally, diversifying revenue streams [12] Earnings Projections - HIMS is projected to have a consensus EPS of $0.75 for the current year, reflecting a year-over-year growth of 177.78% [15] - TDOC's consensus estimate for loss per share in 2025 implies a 79.4% improvement from 2024 [16] Price Targets - The average price target for HIMS is $47.67, indicating a potential decline of 17.3% from the last close [18] - The average price target for TDOC is $9.26, suggesting a potential increase of 12.9% from the last close [19] Investment Recommendation - HIMS is identified as a more stable and financially sound investment opportunity, with strong profitability and user engagement [20][23] - TDOC, while growing, is viewed as having higher execution risk and less financial predictability compared to HIMS [23]

Company Overview - Omada Health is a virtual-first healthcare provider focused on improving lifelong health through clinically-validated behavior change protocols for conditions such as diabetes, hypertension, prediabetes, and musculoskeletal issues [3] - The company has over a decade of experience and data, supported by 29 peer-reviewed publications demonstrating its clinical and economic results [3] - Omada serves more than 2,000 customers, including health plans, health systems, and employers ranging from small businesses to Fortune 500 companies [3] Upcoming Financial Results - Omada Health will release its second quarter 2025 results on August 7, 2025, after market close [1] - A conference call to review the results will take place at 4:30 pm ET on the same day [1] Company Culture and Recognition - Omada Health has been recognized as a certified Great Place to Work®, highlighting its strong and vibrant work culture [4] - The company was the first virtual provider to join the Institute for Healthcare Improvement's Leadership Alliance, indicating its commitment to complementing primary care providers [4]

Core Viewpoint - Teladoc Health has launched Wellbound, a new employee assistance program (EAP) aimed at enhancing employee engagement and wellness [1][2]. Group 1: Program Features - Wellbound is designed specifically for employer and health plan clients in the U.S., utilizing Teladoc Health's extensive scale and clinical expertise to foster long-term employee wellness [2]. - The program addresses the common issues faced by employees in accessing EAP benefits, providing a connected experience that offers continuous support for mental health, physical well-being, and work-life resources [3][4]. - Wellbound includes online therapy services through BetterHelp, along with additional psychiatry, medication management, and self-guided resources from Teladoc Health [5]. Group 2: Additional Benefits - The EAP offers a variety of work-life benefits, including legal consultations, financial planning, coaching, and referrals for elder care and childcare [6]. - The program aims to deliver consistent and impactful support, enhancing resilience and promoting long-term wellness for employees [6]. Group 3: Strategic Alignment - The launch of Wellbound aligns with Teladoc Health's enterprise strategy to enhance service offerings, improve health outcomes, and solidify its leadership in virtual mental health [6]. - Wellbound is available to plan sponsors immediately, with user access starting in January 2026 [7].

Core Insights - Omada Health's GLP-1 companion program significantly enhances medication persistence rates for GLP-1 medications, leading to improved weight loss outcomes comparable to clinical trials [1][2][4] Group 1: Medication Persistence and Weight Loss - Omada's analysis of 1,124 members showed that those who adhered to their GLP-1 medication for 24 weeks had a persistence rate of 84%, compared to lower rates in previous studies [2][4] - Members who maintained their medication lost an average of 12.1% of their body weight over 24 weeks, while those who discontinued early lost only 7.4%, indicating a 64% relative increase in weight loss for persistent users [2][4] Group 2: Support and Resources - The Enhanced GLP-1 Care Track provides targeted resources, including education on dose titration, side effects, nutrition guidance, and exercise support, to help members overcome barriers to medication persistence [3][4] - Omada aims to ensure that increased access to GLP-1 medications translates into sustainable long-term health benefits through enhanced support and engagement in healthy lifestyle changes [4][5] Group 3: Company Overview and Impact - Omada Health is a virtual-first healthcare provider focused on chronic disease management, with over a decade of experience and 29 peer-reviewed publications demonstrating its clinical and economic effectiveness [5][6] - The company serves more than 2,000 customers, including health plans and employers, and emphasizes a strong work culture, earning recognition as a Great Place to Work® [5][6]

Core Insights - Omada Health's GLP-1 companion program significantly enhances medication persistence, leading to weight loss outcomes comparable to clinical trials [1][4][6] - Real-world data indicates that many patients struggle with medication adherence, with one-third discontinuing GLP-1 use within the first month [2][3] - The Enhanced GLP-1 Care Track program provides targeted support to help patients overcome barriers to medication persistence, resulting in higher adherence rates [5][6] Group 1: Program Effectiveness - Omada's analysis showed that members who adhered to their GLP-1 medication for 24 weeks achieved an average weight loss of 12.1%, compared to 7.4% for those who discontinued early, representing a 64% relative increase [4] - The program demonstrated a persistence rate of 94% at 12 weeks and 84% at 24 weeks, significantly higher than previous studies which reported persistence rates ranging from 33% to 80% [3][4] Group 2: Support Mechanisms - The Enhanced GLP-1 Care Track offers comprehensive support, including education on dose titration, management of side effects, nutrition guidance, and exercise support [5][6] - Omada Health emphasizes the importance of providing resources to help members navigate healthcare options, particularly for those considering discontinuation due to access issues [5][6] Group 3: Industry Context - The increasing access to GLP-1 medications presents both opportunities and responsibilities for healthcare providers to ensure cost-effective and sustainable health benefits [6] - Omada Health has over a decade of experience and 29 peer-reviewed publications that validate its approach to chronic disease management and behavior change [7][8]

Core Viewpoint - Teladoc Health has acquired UpLift for $30 million in cash, with potential additional earnouts, to enhance its position in virtual mental health services [6]. Group 1: Acquisition Details - The acquisition of UpLift is aimed at strengthening Teladoc's leadership in virtual mental health, allowing BetterHelp users to access mental health service benefits [2][3]. - UpLift has coverage arrangements for over 100 million lives and a network of more than 1,500 mental health professionals [2]. - The transaction closed on April 30, 2025, and UpLift's 2024 revenue was approximately $15 million [6]. Group 2: Strategic Implications - BetterHelp, as the largest consumer-oriented virtual therapy business, will utilize its differentiated experience to enhance insurance coverage access for consumers through UpLift [3]. - The partnership is expected to drive topline revenue growth and expand the impact of mental health services [4]. - UpLift will continue to operate under its existing CEO, maintaining its responsibilities in provider network management and insurance administration [5]. Group 3: Company Overview - Teladoc Health is a leader in virtual care, leveraging over two decades of expertise to improve health outcomes across various stages of a person's health journey [7].

Core Insights - Teladoc Health has launched a next-generation Cardiometabolic Health Program aimed at improving population health and preventing diabetes, hypertension, and obesity [1][2] Group 1: Program Features and Goals - The new program focuses on essential measures of cardiometabolic health, including diet, physical activity, sleep, stress management, weight, blood lipids, blood glucose, blood pressure, and nicotine exposure [2][3] - Only 12% of U.S. adults currently have optimal cardiometabolic health, indicating a significant need for intervention [3] - The program aims to drive healthier behaviors and improve health outcomes through tools, coaching, and support [3] Group 2: Proven Results and Confidence - Analysis of over 210,000 members in Teladoc's diabetes management program revealed that 58% achieved remission-level A1c, while 88% of participants in the hypertension program improved or maintained their blood pressure after one year [3] - Teladoc Health places 100% of program fees at risk, demonstrating confidence in the program's ability to improve cardiometabolic health [3] Group 3: Integrated Care Strategy - The Cardiometabolic Health Program is part of Teladoc's integrated care segment strategy, which includes enhancements in chronic care management and at-home testing capabilities [4] - Recent collaborations and partnerships have been established to help more individuals discover and enroll in eligible programs [4] Group 4: Additional Support and Resources - The program offers features such as access to registered dietitians, proactive outreach from health coaches, at-home testing for key cardiometabolic measures, and integration with Teladoc's 24/7 Care and primary care providers [7]