Omada Health Reports Strong Growth in First Quarter as Public Company, Riding Wave of Chronic Disease Management Interest

Omada Health, a virtual chronic disease care provider, has reported impressive financial results in its first earnings call since going public in June. The company's performance highlights the growing interest in digital health solutions for chronic disease management, driven by broader health initiatives and pharmaceutical trends.

Q2 2025 Financial Highlights and Member Growth

Omada Health announced revenue of $61 million for the second quarter of 2025, representing a 49% year-over-year increase. The company's member base has grown significantly, with a 52% increase since Q2 2024, bringing the total to 752,000 members.

Financially, Omada showed improvements in several key metrics:

• 66% GAAP gross margin and 68% non-GAAP gross margin, both improvements over the previous year
• Reduced GAAP net loss from $11 million in Q2 2024 to $5 million in Q2 2025
• Adjusted EBITDA loss of $200,000, compared to a $7 million loss in the same period last year

Wei Li Shao, president of Omada, attributed the majority of the company's growth to its standard cardiometabolic programs. The company projects full-year revenue between $235 million and $241 million, with an adjusted EBITDA loss range of $5 million to $9 million.

Factors Driving Growth in Chronic Disease Management

Several factors are contributing to the increased interest in Omada's offerings and the broader field of chronic disease management:

1. RFK Jr.'s Make America Healthy Again campaign has raised awareness of chronic health issues.
2. The growing popularity of GLP-1 medications for weight loss has sparked interest in comprehensive weight management solutions.
3. The Centers for Medicare and Medicaid Services (CMS) has proposed to pay for virtual diabetes prevention services in its annual physician pay rule, a long-standing lobbying priority for Omada.

Shao noted that these developments have created a "360-degree surround sound" effect, bringing cardiometabolic disease to the forefront of public health discussions.

Technology and Innovation in Chronic Disease Care

Omada is positioning itself as part of a new generation of digital health companies leveraging AI and telehealth to improve patient care. The company recently introduced OmadaSpark, an AI agent that identifies nutritional content in food and conducts motivational interviewing to help members understand their eating behaviors.

CEO Sean Duffy emphasized the company's use of AI for personalized coaching and to support the efficiency of its care team. Shao added that AI chatbots are making healthcare more accessible by providing services on patients' schedules.

In response to the GLP-1 medication trend, Omada has developed a companion program for users of these drugs. While still representing a minority of members, the program has shown promising results:

• Patients on the GLP-1 track lost 28% more weight than those on other tracks
• Customers who discontinued GLP-1s but remained on the Omada track maintained their weight loss four months after discontinuation

Omada continues to invest in research and partnerships in the GLP-1 space, working with major pharmacy benefit managers like CVS Caremark and Evernorth to offer its services to their members.