Omada Health Raises 2026 Outlook as Revenue Jumps 34%

Omada Health, Inc. (Nasdaq: OMDA) reported third quarter 2026 revenue of $91 million on 5 November 2026, up 34% from $68 million a year earlier, and swung to net income of $7 million from a net loss of $3 million. The virtual care provider said total members reached an all-time high of 1.1 million, up 36% year over year, and raised full-year revenue guidance to $344 million to $346 million.

Context — Why the Guidance Raise Matters Now

Omada's prior full-year 2026 revenue guidance was $334 million to $340 million. The company lifted that band to $344 million to $346 million, and said the new midpoint implies roughly 33% growth against 2025. The adjusted EBITDA outlook moved further: from $21 million to $27 million up to $32 million to $34 million.

The company said the new adjusted EBITDA midpoint represents an improvement of about $27 million, or roughly five and a half times, versus 2025. That is a larger proportional revision than the revenue change, which signals the beat is flowing through to profitability rather than being spent back into the business.

What triggered the revision is the operating result itself. Gross margin reached 76% on a GAAP basis, up from 66% a year earlier, and 78% on a non-GAAP basis, up from 68%. Revenue growth of 34% paired with a 10-point margin gain is the combination that turned a prior-year operating loss into operating income of $5 million.

The report gives no macro backdrop, no rate commentary and no peer set. What it does give is a company-specific margin story: cost of revenue rose just 4% year over year in services, from $12.7 million to $13.2 million, while services revenue grew 35%.

Data — What the Numbers Show

The headline figures compare against the third quarter of 2025 across the board. Revenue rose from $68.0 million to $91.3 million. Gross profit rose from $45.1 million to $69.3 million. Operating income flipped from a loss of $2.5 million to income of $4.8 million.

Metric	Q3 2025	Q3 2026	Change
Revenue	$68.0M	$91.3M	+34%
GAAP gross margin	66%	76%	+10 pts
Net income (loss)	-$3.2M	+$6.6M	swing
Adjusted EBITDA	$2.4M	$12.4M	+5.2x
Total Members	—	1.1M	+36%

Nine-month figures show the same direction at larger scale. Revenue for the nine months ended September 30, 2026 was $257.2 million against $184.4 million a year earlier. Adjusted EBITDA for the nine-month period was $24.1 million, compared with negative $2.0 million in the prior-year period.

Hardware remains the smaller and lower-quality revenue line. Hardware revenue was $6.2 million in the quarter against $5.1 million a year earlier, but hardware cost of revenue was $8.9 million — meaning the hardware line ran at a gross loss. Services, at $85.1 million, carried the profitability.

Trailing 12-month revenue per total member grew about 5% year over year to $294. Average member tenure rose 10% to roughly two years and four months, about 2.5 additional months in program. Cash and cash equivalents stood at $243.2 million, up from $222.0 million at December 31, 2025.

The report provides no sector index or peer comparison, so no relative performance can be stated.

Analysis — What It Means for Digital Health

The margin expansion is the part that travels beyond this single print. A 76% GAAP gross margin on 34% revenue growth implies the incremental member is far cheaper to serve than the average member, which is the core claim every virtual care operator makes and few demonstrate. Omada's services cost of revenue grew 4% while services revenue grew 35%.

Share-based compensation is the main gap between GAAP and non-GAAP results. Total share-based compensation was $5.9 million in the quarter, up from $3.5 million a year earlier, and $15.7 million for the nine months. That is the largest single add-back in the adjusted EBITDA reconciliation, so the profitability improvement is partly a function of how the company defines the metric.

A second limitation sits in the revenue mix. Related-party revenue is material: services revenue included $53.7 million from a related party in the quarter, and hardware included $4.0 million. Deferred revenue from a related party was $19.2 million at quarter end. Concentration of that size means a single counterparty renegotiation would move the top line.

The cash flow statement shows operating activities generated $7.3 million over nine months, against a $3.1 million use of cash a year earlier. Financing activities brought in $18.7 million, almost entirely $20.0 million of stock option proceeds. Positioning is not disclosed in the report.

Outlook — What to Watch Next

Omada's own guidance is the first catalyst. The company expects full-year revenue of $344 million to $346 million and adjusted EBITDA of $32 million to $34 million. The fourth quarter is therefore implied at roughly $87 million to $89 million of revenue, below the third quarter's $91.3 million, which is a sequential decline the company did not explain in the report.

The company said it has not provided an outlook for GAAP net income or a reconciliation of expected adjusted EBITDA to GAAP net income because the GAAP figure is not available without unreasonable effort, citing the variability of items excluded from adjusted EBITDA.

Management will host a conference call at 1:30 p.m. PT on 5 November 2026, with a replay available for approximately 12 months. No analyst estimates, price targets or moving-average levels appear in the report, so none can be cited here. The next scheduled disclosure point is the fourth quarter and full-year 2026 results.

Frequently Asked Questions

What does Omada Health's first quarterly profit mean for retail investors?

It means the company covered its operating costs from revenue for the first time in the periods shown, generating $6.6 million of net income against a $3.2 million loss a year earlier. It does not mean the business is fully self-funding: share-based compensation of $5.9 million is added back to reach adjusted EBITDA of $12.4 million, and hardware still ran at a gross loss.

Why did Omada Health raise its 2026 guidance?

The company raised full-year revenue guidance from $334 million to $340 million up to $344 million to $346 million, and lifted adjusted EBITDA guidance from $21 million to $27 million to $32 million to $34 million. The margin gain drove most of the EBITDA revision: GAAP gross margin moved from 66% to 76% year over year while revenue grew 34%.

What happens next for Omada Health stock?

The report gives no price level, analyst target or valuation figure, so no directional view can be drawn from it. The concrete next events are the 5 November 2026 conference call at 1:30 p.m. PT and the fourth quarter results. Watch whether the implied fourth-quarter revenue of roughly $87 million to $89 million holds, and whether services gross margin stays near 76%.

Bottom Line

Omada's 10-point gross margin gain, not its 34% revenue growth, is what turned the quarter profitable and drove the guidance raise.

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