Omada Health reached a key profitability milestone at the end of 2025, delivering $5 million in net income in its first profitable fourth quarter.
The virtual chronic care provider also reported strong revenue growth in 2025 and in the fourth quarter, supported by steady increases in hypertension and diabetes support and GLP-1 program adoption.
Omada Health’s membership increased 55% year over year to 886,000. Fourth quarter revenue increased 58% to $76 million, and full year revenue was $260 million, an increase of 53% compared to 2024. The company’s fourth-quarter net income compared to a net loss of $8 million in the year-ago period. For the full year, Omada narrowed its losses, reporting a net loss of $13 million for the year, compared to a net loss of $47 million in 2024.
Omada also reported fourth-quarter adjusted EBITDA of $8 million, compared to a fourth-quarter 2024 adjusted EBITDA loss of $4 million. For the full year, the company reported adjusted EBITDA of $6 million, compared to an adjusted EBITDA loss of $29 million in 2024.
Gross margin expanded to 71% in the fourth quarter from 67% in the fourth quarter of 2024, and gross margin for the year was 66%, compared to 61% in the year-ago quarter.
“The key factors driving growth include the industry’s broader focus on cardiometabolic diseases, deeper penetration of customers with multiple diseases, strong adoption of our GLP-1 program, and more effective enrollment campaigns,” Omada Chief Financial Officer Stephen Cook said during the company’s full-year and fourth quarter earnings call.
Revenue from Omada’s weight loss programs grew by more than 50% in 2025, and revenue from its hypertension and diabetes programs grew by more than 45% in 2025, executives noted, as employers lean toward Omada Health as an integrated cardiometabolic solutions provider.
The company ended 2025 with $222 million in cash and cash equivalents, up from $199 million at the end of the third quarter. And it generated positive operating cash flow for the year, a significant milestone, Cook told investors.
Omada Health, which went public in June, combines remote monitoring devices with coaching and artificial intelligence to help consumers manage chronic diseases. The company supports diabetes, hypertension, obesity, and musculoskeletal conditions, and is focused on a multi-disease approach to differentiate itself from its competitors. The company currently partners with 2,000 employers and health plans.
In 2023, the company launched GLP-1 CareTrack to provide support and wraparound services to health plan members and employees taking GLP-1 therapeutics. The company initially did not provide prescription access for GLP-1 drugs, but instead focused on building weight management programs. Last year, the company decided to enter the GLP-1 market and announced the GLP-1 Care Companion Solution, which can include nutritional guidance, education, a care team of health coaches, cardiometabolic experts, exercise experts, and prescription and medication management.
In an effort to further penetrate the obesity market, the company last week announced GLP-1 FlexCare, a new product to support employers looking to expand access to GLP-1 therapeutics for obesity. The company says its members purchase their own medicines through cash payment channels, helping to limit employers’ direct exposure to drug costs.
“We believe the need for alternative GLP-1 benefits in design solutions has been underestimated and this could be a significant opportunity. The GLP-1 market for large commercial insurance employers is currently bifurcated, with approximately 45% covering GLP-1 for obesity and approximately 55% not covering GLP-1 for obesity,” Weili Xiao, president of Omada Health, said on the earnings call.
“The 55% that don’t have GLP-1 coverage needs something different before we can confidently cover it from a wait-and-see perspective,” he noted. “That’s where GLP-1 Flex Care comes in. It offers employers a systematic way to connect eligible employees with GLP-1 clinical evaluation, prescription, and ongoing medical supervision, alongside Omada’s lifestyle and behavioral supports.”
Under this program, employers pay for doctor visits, tests, and behavioral support, and employees purchase branded GLP-1 out-of-pocket through trusted cash payment channels.
“We believe the future of GLP-1 coverage will include multiple benefit design solutions that address employers’ diverse needs, including robust clinical services, broad GLP-1 access, lifestyle support, and financial peace of mind,” Shao said.
Omada Health co-founder and CEO Sean Duffy told investors on an earnings call that the new program allows employers who don’t cover anti-obesity drugs to offer their employees the opportunity for high-quality GLP-1 care “without having to immediately cover the full cost of the drug and with strong oversight.”
Omada currently supports over 150,000 GLP-1 members, compared to over 50,000 at the end of 2024.
“Omada’s technology and operational platform, our clinical programs, peer-reviewed research, productive distribution channels, and over a decade of rich and unique data are uniquely suited to this moment in time when chronic care solutions, the rapidly evolving GLP-1 market, and customer demand for AI-driven innovation are converging,” said Duffy.
Duffy said Omada is on a mission to bend the curve on obesity-related diseases, as 40% of adults are obese and nearly two-thirds have at least one cardiometabolic risk factor, including obesity, diabetes, hypertension, and cardiovascular disease. “We believe that the health system is structurally incapable of addressing this problem at scale without a fundamentally different model of care,” he said.
The course of a person’s illness is largely determined outside the clinic, Duffy added.
“Omada has put the spaces between these visits at the center of care through an integrated, multi-state care model that we have refined for more than a decade. We have built a member experience that brings together care teams, AI, connected devices, and a custom care platform designed for quality at scale,” said Duffy.
Omada’s results showed that GLP-1 CareTrack members achieved, on average, greater weight loss and approximately maintained their average weight one year after discontinuing GLP-1 therapy compared to published real-world evidence. “These results challenge the narrative of inevitable weight rebound and highlight the power of behavioral change in addition to medication,” Duffy said.
Omada is bullish on policy tailwinds that promote technology-enabled chronic disease management, such as the Diabetes Prevention Act, which solidified Medicare coverage for virtual diabetes prevention programs, and the CMS ACCESS model. “This government action confirms that de facto primary prevention is increasingly recognized as essential to expanding access to quality care,” Hsiao told investors.
Digital health companies are also investing heavily in AI, embedding the technology across their platforms. OmadaSpark is an AI-powered assistant that works with a human coach to provide real-time nutritional support, motivation, and habit building. Meal Map, on the other hand, is an AI-driven experience focused on food quality.
Care teams can access AI-enabled tools like summaries to reduce time spent on paperwork. Omada engineers are also equipped with AI-assisted coding tools to improve development speed and outcomes.
In response to an investor question about the potential risk to Omada’s business from AI, Duffy said the company has a unique dataset of “tens of millions of care team conversations, hundreds of millions of biometric data points, billions of real-world data points” that allows it to customize and personalize care. This data infrastructure gives the company unique advantages, he noted.
“I don’t tend to look at AI as if it’s going to disrupt health care or destroy Omada. Rather, I see it as a question of who’s going to build it in the right way within health care. And I believe we have a unique foundation to do exactly that here at Omada,” he said on the phone.
The company expects 2026 sales to be in the range of $312 million to $322 million, with the midpoint reflecting 22% growth compared to 2025. Omada also expects 2026 adjusted EBITDA to be in the range of $7 million to $15 million, with the midpoint reflecting an increase of $5 million year over year.
