Omada Health, Inc. (OMDA)

Price$22.77Cached quoteAs of 2026-09-05 03:02 UTC

AI: Fair-priced

Price checkThe valuation looks reasonable only if fast growth becomes durable cash profit.

Using 60.6 million June shares, the market values equity near $1.19 billion and, after subtracting $222 million of cash and no debt, operations near $970 million. That is about 2.9 times the midpoint of management’s 2026 revenue outlook and roughly 43 times trailing free cash flow, meaning cash left after operating and equipment spending. The sales multiple is defensible for 30%-plus growth, but the cash multiple leaves limited protection if growth or margins stall. That balance supports Fair-priced.

Big pictureGrowth is strong, but consistent earnings and cash generation are still unproven.

Revenue rose 53% in 2025 to $260 million; trailing twelve-month revenue reached about $310 million. Q2 revenue grew 43% year over year, gross margin rose to 73%, and net income turned positive at $5.3 million. Trailing operating cash flow was about $23.7 million; after $1 million of equipment spending, free cash flow was roughly $22.7 million. Yet Q1 consumed $11.8 million before Q2 generated $4.0 million. Enrollment launches cluster early in the year, so one profitable quarter does not establish durability.

Business strengthA debt-free balance sheet supports expansion, while partner dependence and dilution weaken protection.

Omada held $222 million in cash and no debt, while current assets exceeded current liabilities by about $219 million, giving it room to absorb volatility. Revenue is less diversified: five health-plan and pharmacy-benefit partners supplied 79% of first-half revenue, and the two largest supplied 65%. Shares increased 3.7% from year-end to June; first-half share compensation was $9.8 million, over four times net income. With no buybacks or dividends, owners depend on reinvestment offsetting continuing dilution.

What could change the storyBroader adoption could justify the price, while slower enrollment would expose thin current profits.

The bull case strengthens if the 1.5 million-person HCSC expansion and cholesterol launch lift billable members while adjusted gross margin approaches management’s 80% goal. Management also targets at least 20% yearly revenue growth and a 30% adjusted profit margin before interest, taxes, depreciation, and selected costs. Applied to guided 2026 sales, that margin is about $101 million, making today’s operating-business value roughly ten times this unrealized profit. The bear case is concentrated: five partners drive 79% of revenue, so one major loss could disrupt both growth and margins.

AI: News

Profitability and outlook jumpOmada delivered faster growth, its best profit quarter, and a higher full-year forecast.

On August 6, Q2 revenue rose 43% to $87.8 million, members rose 45% to 1.09 million, and gross margin reached 73%. The company posted $5.3 million of net income and lifted 2026 revenue guidance to $334–$340 million from $322–$330 million. Shares closed 21% higher the next session. The timing is consistent with a favorable earnings reaction, though it does not prove the report alone caused the move.

Planned CEO handoffA planned founder handoff adds leadership uncertainty but preserves continuity through the executive chair role.

Announced August 6, President Wei-Li Shao will become chief executive on January 1, 2027, while co-founder Sean Duffy becomes executive chair. The board approved the plan, and lead-independent-director duties will shift to Jeryl Hilleman. Because Shao already serves as president and Duffy remains involved, this is structured as an internal succession. Investors still need to watch whether sales execution and product priorities remain steady while the valuation depends on sustained high growth.

Long-term targets unveiledManagement promised durable growth and much higher margins, raising the bar for future execution.

At its September 10 Investor Day, Omada targeted at least 20% annual revenue growth, an 80% gross margin excluding selected costs, and a 30% adjusted profit margin before interest, taxes, depreciation, and selected costs. Members and trailing revenue had nearly tripled since 2023, reaching 1.09 million and about $310 million. Shares fell 8.6% the following session. That timing suggests investors reassessed the targets or valuation, but no evidence isolates the presentation as the sole cause.

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Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022
Revenue	$260.2M	$169.8M	$122.8M	$89.2M
Gross profit	$170.9M	$102.9M	$70.0M	$42.8M
Gross margin	65.69%	60.59%	56.99%	47.98%
Research & development	$40.7M	$35.9M	$33.7M	$26.2M
Operating expenses	$182.9M	$146.5M	$136.0M	$115.1M
Operating income	−$12.0M	−$43.7M	−$66.0M	−$72.3M
Operating margin	−4.60%	−25.71%	−53.75%	−81.12%
EBITDA	−$6.5M	−$38.9M	−$61.5M	−$64.0M
EBITDA margin	−2.49%	−22.88%	−50.13%	−71.75%
Net income	−$12.8M	−$47.1M	−$67.5M	−$72.5M
Net profit margin	−4.91%	−27.76%	−54.98%	−81.31%
Basic EPSper basic share	-$0.35	-$6.11	-$9.52	-$1.52
Diluted EPSper diluted share	-$0.35	-$6.11	-$9.52	-$1.52

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈8.59%of listed shares

Revelation Healthcare Fund IV GP, LLC / Revelation Healthcare Fund II GP, L.P. / Revelation Alpine GP, LLC / Revelation Healthcare Fund IV, L.P. / REVELATION HEALTHCARE FUND II, L.P. / Revelation Healthcare Fund II GP, LLC / Revelation Alpine, LLC / REVELATION ALPINE, L.P. / Revelation Healthcare Fund IV GP, L.P.5.21M shares · Jun 9, 2025

View holders

Top 20 reported holders of OMDA
Holder	% owned
Revelation Healthcare Fund IV GP, LLC / Revelation Healthcare Fund II GP, L.P. / Revelation Alpine GP, LLC / Revelation Healthcare Fund IV, L.P. / REVELATION HEALTHCARE FUND II, L.P. / Revelation Healthcare Fund II GP, LLC / Revelation Alpine, LLC / REVELATION ALPINE, L.P. / Revelation Healthcare Fund IV GP, L.P.	≈8.59%5.21M shares
Revelation Capital Management, LLC	8.02%4.86M shares
Divisadero Street Capital Management, LP	6.27%3.8M shares
AMERICAN CENTURY COMPANIES INC	6.07%3.68M shares
CIGNA INVESTMENTS INC /NEW	5.68%3.44M shares
MORGAN STANLEY	4.62%2.8M shares
FMR LLC	4.58%2.78M shares
NVP ASSOCIATES, LLC	4.18%2.53M shares
BlackRock, Inc.	3.67%2.22M shares
VANGUARD CAPITAL MANAGEMENT LLC	3.18%1.93M shares
MILLENNIUM MANAGEMENT LLC	2.84%1.72M shares
LOOMIS SAYLES & CO L P	2.64%1.6M shares
Duffy Sean P.	≈2.06%1.25M shares
D. E. Shaw & Co., Inc.	1.98%1.2M shares
a16z Capital Management, L.L.C.	1.90%1.15M shares
OBERWEIS ASSET MANAGEMENT INC/	1.73%1.05M shares
Nuveen, LLC	1.57%950.72K shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	1.39%843.58K shares
Archon Capital Management LLC	1.31%790.99K shares
PERCEPTIVE ADVISORS LLC	1.30%786.33K shares

Percentages use 60.61M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)28$7.23M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 29, 2026Form 4 · 10b5-1	Gracey CraigChief Accounting Officer	SellCommon Stock	2.1K	$21.00	$43.7K	858
Jun 29, 2026Form 4 · 10b5-1	Cook Steven L.Chief Financial Officer	SellCommon Stock	17.9K	$21.07	$378.2K	115.4K
Jun 26, 2026Form 4 · 10b5-1	Gracey CraigChief Accounting Officer	SellCommon Stock	2.1K	$20.00	$41.7K	2.9K
Jun 26, 2026Form 4 · 10b5-1	Cook Steven L.Chief Financial Officer	SellCommon Stock	33.0K	$19.89	$656.4K	133.4K
Jun 26, 2026Form 4 · 10b5-1	Duffy Sean P.Chief Executive Officer	SellCommon Stock	4.3K	$20.90	$90.2K	394.6K

Review ownership filings at SEC.gov ↗

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