Q3 FY2026
Filed Nov 5, 2026Omada Health reports Q3 2026 revenue of $91 million, up 34% year over year, with total members at 1.1 million, and raises FY2026 revenue and Adjusted EBITDA guidance.
Revenue rose 34% year over year, GAAP operating income and net income were positive against losses in Q3 2025, Adjusted EBITDA more than quintupled, and the company raised both FY2026 revenue and Adjusted EBITDA guidance. Gross margin expanded to 76% GAAP from 66%. The filing does not provide a prior quarter, consensus or share price reaction, so the read covers year-over-year figures only.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, Q3 2026GAAP | $91.31M | – | 34% |
| Services revenue, Q3 2026GAAP | $85.11M | – | – |
| Hardware revenue, Q3 2026GAAP | $6.2M | – | – |
| Total cost of revenue, Q3 2026GAAP | $22.02M | – | – |
| Gross profit, Q3 2026GAAP | $69.28M | – | – |
| Gross margin, Q3 2026GAAP | 76% | – | – |
| Non-GAAP gross profit, Q3 2026non-GAAP | $70.98M | – | – |
| Non-GAAP gross margin, Q3 2026non-GAAP | 78% | – | – |
| Research and development, Q3 2026GAAP | $15.27M | – | – |
| Non-GAAP research and development, Q3 2026non-GAAP | $14.18M | – | – |
| Sales and marketing, Q3 2026GAAP | $29.11M | – | – |
| Non-GAAP sales and marketing, Q3 2026non-GAAP | $27.01M | – | – |
| General and administrative, Q3 2026GAAP | $20.08M | – | – |
| Non-GAAP general and administrative, Q3 2026non-GAAP | $17.41M | – | – |
| Total operating expenses, Q3 2026GAAP | $64.46M | – | – |
| Non-GAAP operating expenses, Q3 2026non-GAAP | $58.60M | – | – |
| Operating income (loss), Q3 2026GAAP | $4.82M | – | – |
| Interest income, Q3 2026GAAP | $1.99M | – | – |
| Net income (loss), Q3 2026GAAP | $6.55M | – | – |
| Net margin, Q3 2026GAAP | 7% | – | – |
| Diluted EPS, Q3 2026GAAP | $0.10 | – | – |
| Basic EPS, Q3 2026GAAP | $0.11 | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $12.38M | – | – |
| Adjusted EBITDA margin, Q3 2026non-GAAP | 14% | – | – |
| Total Members, end of Q3 2026other | 1.1M | – | 36% |
| Trailing 12-month revenue per Total Member, Q3 2026other | $294 | – | approximately 5% |
| Average member tenure, Q3 2026other | approximately 2 years and 4 months | – | 10% |
| Cash and cash equivalents, September 30, 2026GAAP | $243.2M | – | – |
| Total revenue, nine months 2026GAAP | $257.2M | – | – |
| Services revenue, nine months 2026GAAP | $235.4M | – | – |
| Hardware revenue, nine months 2026GAAP | $21.80M | – | – |
| Total cost of revenue, nine months 2026GAAP | $75.43M | – | – |
| Gross profit, nine months 2026GAAP | $181.8M | – | – |
| Gross margin, nine months 2026GAAP | 71% | – | – |
| Non-GAAP gross margin, nine months 2026non-GAAP | 73% | – | – |
| Total operating expenses, nine months 2026GAAP | $178.2M | – | – |
| Operating income (loss), nine months 2026GAAP | $3.59M | – | – |
| Net income (loss), nine months 2026GAAP | $8.88M | – | – |
| Diluted EPS, nine months 2026GAAP | $0.14 | – | – |
| Basic EPS, nine months 2026GAAP | $0.15 | – | – |
| Adjusted EBITDA, nine months 2026non-GAAP | $24.10M | – | – |
| Adjusted EBITDA margin, nine months 2026non-GAAP | 9% | – | – |
| Net cash provided by (used in) operating activities, nine months 2026GAAP | $7.31M | – | – |
| Free cash flow, nine months 2026non-GAAP | $2.46M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Services revenue, Q3 2026Includes amounts from a related party of $53.7 million for Q3 2026 and $41.8 million for Q3 2025, as printed in the filing. The filing does not state a cause for the services revenue change. | $85.11M | – | – |
| Hardware revenue, Q3 2026Includes amounts from a related party of $4.0 million for Q3 2026 and $3.0 million for Q3 2025, as printed in the filing. The filing does not state a cause for the hardware revenue change. | $6.2M | – | – |
| Services revenue, nine months 2026Includes amounts from a related party of $151.1 million for nine months 2026 and $108.2 million for nine months 2025, as printed in the filing. | $235.4M | – | – |
| Hardware revenue, nine months 2026Includes amounts from a related party of $13.9 million for nine months 2026 and $9.0 million for nine months 2025, as printed in the filing. | $21.80M | – | – |
FY2026 (year ending December 31, 2026) outlook
- Revenue$344 million to $346 million
- NoteAdjusted EBITDA: $32 million to $34 million (non-GAAP)
- NotePrior guidance as printed in this release: revenue $334 million to $340 million; Adjusted EBITDA $21 million to $27 million
- NoteCompany states the revenue midpoint represents approximately 33% growth compared with 2025
- NoteCompany states the Adjusted EBITDA midpoint represents an improvement of approximately $27 million, or roughly five and a half times, compared with 2025
- NoteNo outlook is provided for GAAP net income (loss) or for a reconciliation of Adjusted EBITDA to GAAP net income (loss)
Capital returns
- The filing does not report share repurchases or dividends for the periods shown.
- Proceeds from exercise of stock options were $19,984 thousand for nine months 2026 and $5,993 thousand for nine months 2025.
- Taxes paid related to net share settlement of equity awards were $(1,328) thousand for nine months 2026 and none printed for nine months 2025.
What drove it
- Company statement: Our diabetes and hypertension programs led that growth.
- Company statement: Total Members reached 1.1 million, increasing 36% year over year, reflecting continued demand across Omada Health's integrated cardiometabolic care platform and strong enrollment momentum across diabetes and hypertension programs.
- Company statement: Average member tenure grew 10% year over year to approximately 2 years and 4 months, which is roughly an additional 2.5 months in program.
- Company statement: Adjusted EBITDA and gross margin are presented as reported; the filing does not attribute the gross margin expansion to a specific cause.
- Company statement: The FY2026 outlook was raised from the prior guidance printed in the release.
Concerns
- Accounts receivable, net rose to $48,193 thousand from $34,585 thousand at December 31, 2025, and the related party portion rose to $29.0 million from $22.8 million. Nine-month operating cash flow of $7,313 thousand was reported alongside a $(15,924) thousand change in accounts receivable.
- Free cash flow for nine months 2026 was $2,459 thousand, a non-GAAP measure, compared with net income of $8,875 thousand on a GAAP basis for the same period.
- A substantial portion of revenue is from a related party. Services revenue from related parties was $53.7 million of $85,106 thousand in Q3 2026. The filing's risk factors cite concentration of sales among a limited number of customers and channel partners.
- Net income for Q3 2026 of $6,551 thousand includes interest income of $1,993 thousand. Operating income for the quarter was $4,820 thousand.
- Operating expenses rose to $64,462 thousand from $47,584 thousand in Q3 2025, while revenue rose to $91,306 thousand from $68,030 thousand.
What to watch
- Delivery against FY2026 guidance of $344 million to $346 million in revenue and $32 million to $34 million in Adjusted EBITDA.
- Accounts receivable and related party receivable balances relative to revenue in subsequent periods.
- Free cash flow progression from the nine-month figure of $2,459 thousand.
- Total Members growth of 36% and trailing 12-month revenue per Total Member of $294.
- Gross margin trajectory, with GAAP gross margin at 76% in Q3 2026 and 71% for nine months 2026.
- Operating expense growth in sales and marketing and in research and development, which the filing shows rising year over year.
Balance sheet and cash flow
- Cash and cash equivalents: $243,151 thousand at September 30, 2026 versus $222,036 thousand at December 31, 2025.
- Accounts receivable, net: $48,193 thousand at September 30, 2026 versus $34,585 thousand at December 31, 2025. Related party amounts within this line were $29.0 million and $22.8 million, respectively.
- Deferred revenue, current: $25,835 thousand at September 30, 2026 versus $25,058 thousand at December 31, 2025. Related party amounts were $19.2 million and $18.8 million, respectively.
- Total assets: $348,538 thousand at September 30, 2026 versus $305,406 thousand at December 31, 2025.
- Total liabilities: $75,379 thousand at September 30, 2026 versus $75,726 thousand at December 31, 2025.
- Total stockholders' equity: $273,159 thousand at September 30, 2026 versus $229,680 thousand at December 31, 2025.
- The balance sheet presents no debt line item at either date printed in the filing.
- Net cash provided by (used in) operating activities: $7,313 thousand for nine months 2026 versus $(3,127) thousand for nine months 2025.
- Within operating activities for nine months 2026, the change in accounts receivable was $(15,924) thousand, of which changes in related party balances were $7.7 million.
- Purchases of property and equipment: $(342) thousand for nine months 2026 versus $(1,123) thousand for nine months 2025.
- Capitalized internal-use software costs: $(4,512) thousand for nine months 2026 versus $(3,363) thousand for nine months 2025.
- Net cash used in investing activities: $(4,854) thousand for nine months 2026 versus $(4,486) thousand for nine months 2025.
- Net cash provided by financing activities: $18,656 thousand for nine months 2026 versus $129,848 thousand for nine months 2025.
- Share-based compensation expense: $5,851 thousand for Q3 2026 versus $3,536 thousand for Q3 2025, and $15,691 thousand for nine months 2026 versus $9,210 thousand for nine months 2025.
Analysis
Omada Health reported third quarter 2026 revenue of $91,306 thousand, up from $68,030 thousand, which the release describes as growth of 34%. Services revenue was $85,106 thousand against $62,936 thousand a year earlier, and hardware revenue was $6,200 thousand against $5,094 thousand. For the nine months, total revenue was $257,189 thousand against $184,364 thousand. The filing does not print a prior quarter figure, so sequential movement cannot be read from this document.
Profitability moved sharply. GAAP gross margin was 76% against 66% in Q3 2025, and non-GAAP gross margin was 78% against 68%. Gross profit was $69,282 thousand against $45,071 thousand. Total operating expenses rose to $64,462 thousand from $47,584 thousand, but GAAP operating income was $4,820 thousand against a loss of $(2,513) thousand. GAAP net income was $6,551 thousand against a loss of $(3,178) thousand, with diluted EPS of $0.10 against $(0.06). Adjusted EBITDA was $12,379 thousand, or 14% of revenue, against $2,383 thousand, or 4%. Interest income of $1,993 thousand contributed to the quarter's pre-tax result, and the provision for income taxes was nil in both periods.
Membership and engagement metrics point in the same direction. Total Members reached 1.1 million, up 36%. Trailing 12-month revenue per Total Member was $294, which the company says grew approximately 5%. Average member tenure grew 10% to approximately 2 years and 4 months. The company attributes growth to its diabetes and hypertension programs, and the filing does not break revenue out by program.
Cash generation and the balance sheet show a more mixed picture. Nine-month operating cash flow was $7,313 thousand and free cash flow was $2,459 thousand, a non-GAAP measure, against negative figures a year earlier. Accounts receivable, net rose to $48,193 thousand from $34,585 thousand at December 31, 2025, and related party receivables within that line rose to $29.0 million from $22.8 million. Cash and cash equivalents were $243,151 thousand. Stockholders' equity rose to $273,159 thousand from $229,680 thousand, mainly alongside the increase in additional paid-in capital, which the filing shows rising with stock option exercises of $19,984 thousand in the nine months.
The outlook was raised. FY2026 revenue guidance is $344 million to $346 million, compared with the prior guidance figure of $334 million to $340 million printed in this release. Adjusted EBITDA guidance is $32 million to $34 million, compared with $21 million to $27 million. The company gives no GAAP net income outlook and says it cannot provide one without unreasonable effort. The filing does not provide guidance for gross margin, operating expenses or tax rate, and the previous full release was not supplied, so the comparison to prior guidance is limited to the figures printed in this release.
Management, verbatim
Omada Health delivered its strongest quarter yet, with revenue growing 34% year over year, Total Members increasing 36% and a GAAP gross margin of 76%,
Sean Duffy, Co-founder and CEO, Omada Health
Our diabetes and hypertension programs led that growth, and average tenure in our programs reached a record of roughly two years and four months. That gives members more time to build lasting habits and the confidence to manage their health.
Sean Duffy, Co-founder and CEO, Omada Health
Not in the filing
stated, not guessed- Q2 2026 (prior quarter) figures are not printed in this filing, so all sequential changes are null.
- Prior-year percentage changes are not printed for most line items, including services revenue, hardware revenue, gross profit, operating expenses and operating income.
- Prior-year percentage change in gross margin in percentage points is not printed as a number; the release states only that margin was up from 66%.
- The previous earnings release outlook was not provided, so vs_prior_guidance is empty.
- Guidance for gross margin, operating expenses, tax rate and GAAP net income is not provided.
- Prior-year Total Members count and prior-year trailing 12-month revenue per Total Member are not printed.
- Prior-year average member tenure figure is not printed; only the 10% change is given.
- Debt balances are not printed; the balance sheet contains no debt line.
- Consensus estimates, analyst expectations, price targets and share price reaction are not in the documents.
- Quarter-end cash for the prior year quarter (September 30, 2025) is not printed on the balance sheet; the balance sheet compares only to December 31, 2025.
- Segment or geographic revenue breakdown beyond services and hardware is not provided.
- Reason for the change in gross margin is not stated in the filing.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.