Omada Health Swings to Profit in Q2, Revenue Jumps 43%, but Material Weakness Lingers
OMDA has more than doubled off its 52-week low of $10.28 on elevated volume (3.7× avg).
Summary
Omada Health reported Q2 2026 net income of $5.3M on revenue of $87.8M (+43% YoY), with gross margin expanding to 73%. Total members grew to 1.09M. A previously disclosed material weakness in internal controls remains unremediated.
Key Events · Earnings and Guidance · OMDA
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First Profitable Quarter
Net income of $5.3M in Q2 2026, compared to a net loss of $5.3M in Q2 2025, driven by strong revenue growth and operating leverage.
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Revenue Surges 43%
Total revenue reached $87.8M, up from $61.4M a year ago, fueled by a 45% increase in total members to 1,091,000.
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Gross Margin Expands to 73%
Gross margin improved by 7 percentage points year-over-year, reflecting lower per-member Care Team costs from efficiency initiatives and technology support tools.
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Material Weakness Unremediated
The company continues to have a material weakness in internal controls over financial reporting related to inadequate formalized close and reporting processes, with remediation ongoing.
Analysis · OMDA · Industrial Applications And Services
Omada Health posted its first profitable quarter as a public company, earning $5.3M versus a $5.3M loss a year ago. Revenue surged 43% to $87.8M, driven by a 45% jump in total members to over 1 million. Gross margin expanded sharply to 73% as the company scaled its Care Team efficiency. However, the company still has an unremediated material weakness in its financial controls — a red flag that tempers the otherwise strong operational turnaround.
At the time of this filing, OMDA was trading at $23.67 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $1.4B. The 52-week trading range was $10.28 to $26.92. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.