Omada Health saw its "strongest quarter ever" in the third quarter of 2026, CEO and co-founder Sean Duffy told investors and analysts during a Thursday evening earnings call.
"We delivered our highest quarterly revenue, gross margin progression, and our most profitable quarter to date," Duffy said.
The virtual chronic care provider, which went public last June, brought in $91 million in revenue—up 34% year-over-year—and reported gross margin of 76% on a GAAP basis and 78% on a non-GAAP basis, according to Duffy. Omada reported net income of $7 million in the third quarter, compared with a net loss of $3 million in Q3 2025.
The company also reported adjusted EBITDA of $12 million, compared to $2 million the year prior.
It beat Wall Street analysts’ estimates for revenue, though slightly trailed behind projections for total membership.
Total members reached 1.1 million, up 36% year-over-year, with trailing 12-month revenue per total member increasing 5% year-over-year to $294, according to financial results published Thursday. Average member tenure also grew 10% compared to the year prior, to approximately two years and four months. Member retention has improved to 58%, up from 43% in Q4 of 2024, executives said.
Omada Health President Wei-Li Shao said Q3 membership growth reflects "continued demand" for its cardiometabolic platform, adding that the company's diabetes and hypertension programs continued to lead growth.
The company's diabetes and hypertension programs, longer member retention and lower care delivery costs are increasingly driving both growth and profitability, executives said.
"Members stayed with us longer, and our ability to provide personalized care at scale reached a new level of efficiency," Shao said.
The company supports diabetes, hypertension, obesity and musculoskeletal conditions—launching a GLP-1 care companion solution last November.
Shao noted that Omada deepened its partnership with the Health Care Services Corporation (HCSC) last quarter to extend its prevention and hypertension programs into three additional states, which is expected to "potentially reach an additional estimated 1.5 million covered lives at launch in 2027."
"On the PBM side, we have commercial relationships with the three largest PBMs in the country, which together processed an estimated 80% of prescription claims in 2025," Shao said. "Our prescribing program is in the market now at Optum. These relationships give us the broadest distribution in Omada’s history for our programs."
Shao, who will take over as CEO Jan. 1, also noted that artificial intelligence solutions enable care teams to have more capacity to "apply their clinical expertise" while tailoring care to each member’s needs.
"This quarter shows what we have built at Omada," Shao said. "Our commercial relationships give us broad reach, and our cardiometabolic programs have driven growth. Our program mix has supported longer member tenure, and our cost to serve has decreased."
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, "given the size of the commitment, the range of solutions and the importance of getting these decisions right," which has extended the selling season deeper into the fourth quarter.
Omada Health's stock dropped 19% Friday following the Q3 earnings call on Thursday as investors pulled back due to concerns about the longer selling season and expected Q4 member decline clouding the company's 2027 outlook.
The company is raising its full 2026 revenue and adjusted EBITDA outlook. Cook said 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 expected to be in the range of $32 million to $34 million, up from $21 million to $27 million.
"Our outlook anticipates Q4 revenue below our Q3 level, reflecting the lower new enrollment and engagement activity we have historically seen during the holidays," Cook said. "We expect revenue to come primarily from continued engagement among existing members."