Omada Health reported its “strongest quarter ever” in the third quarter of 2026. CEO and co-founder Sean Duffy stated the company delivered its highest quarterly revenue, gross margin progression, and most profitable quarter to date. Duffy highlighted that this success reflects the company’s ability to scale personalized care efficiently, a key driver of both growth and profitability.
The virtual chronic care provider brought in $91 million in revenue, a 34% year-over-year increase. It reported a gross margin of 76% on a GAAP basis and 78% on a non-GAAP basis, surpassing Wall Street analysts’ estimates for revenue, though slightly trailing projections for total membership.
Omada reported net income of $7 million in the third quarter, compared to a net loss of $3 million in Q3 2025. These financial improvements were attributed to longer member retention and lower care delivery costs, according to executives.
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Membership Growth
Total members reached 1.1 million, a 36% year-over-year increase. Trailing 12-month revenue per total member increased 5% year-over-year to $294. Average member tenure grew 10% compared to the year prior, reaching approximately two years and four months, with member retention improving to 58%, up from 43% in Q4 of 2024.
Omada Health President Wei-Li Shao emphasized that Q3 membership growth reflects “continued demand” for its cardiometabolic platform, particularly its diabetes and hypertension programs. These programs, along with longer member retention and lower care delivery costs, are increasingly driving both growth and profitability. The company also supports obesity and musculoskeletal conditions, having launched a GLP-1 care companion solution last November to further expand its offerings.
Partnerships and Expansion
Omada deepened its partnership with the Health Care Services Corporation (HCSC) last quarter, extending its prevention and hypertension programs into three additional states. This expansion is expected to reach an estimated 1.5 million covered lives at launch in 2027.
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The company’s commercial relationships with the three largest PBMs, which processed an estimated 80% of prescription claims in 2025, have significantly enhanced its market reach. Shao noted that these relationships give Omada the broadest distribution in its history for its programs. The prescribing program is now active in the market through Optum, further solidifying Omada’s position.
Outlook and Projections
Omada Health is raising its full 2026 revenue and adjusted EBITDA outlook. Revenue is expected to range from $344 million to $346 million, up from its previous range of $334 million to $340 million. Adjusted EBITDA is projected to be between $32 million and $34 million, up from $21 million to $27 million.
Chief Financial Officer Steve Cook told investors the company expects new enrollments to “moderate sequentially” in the fourth quarter, which he said is “consistent with historic seasonality.” Shao also noted that a number of employers have been spending more time making GLP-1 coverage and obesity care decisions, which has extended the selling season deeper into the fourth quarter.
