Omada Health Reports Strong Growth in First Public Earnings, Highlights GLP-1 Opportunities

Omada Health, a leading virtual chronic disease management company, has reported impressive financial results in its first earnings call as a public company. The firm's performance underscores the growing demand for digital health solutions and the impact of weight loss medications on the healthcare landscape.

Revenue Surge and Membership Growth

Omada Health announced a 49% year-over-year increase in revenue, reaching $61.4 million for the second quarter of 2025. The company's membership base expanded significantly, growing by 52% compared to the same period last year, with a total of 752,000 members now enrolled in its programs.

The strong financial performance was accompanied by improved profitability metrics. Omada reported a GAAP gross margin of 66% and a non-GAAP gross margin of 68%, both showing improvements over the previous year. The company's net GAAP loss narrowed to $5.3 million, down from $10.7 million in Q2 2024.

GLP-1 Medications and Chronic Disease Management

A key driver of Omada's growth has been the increasing focus on chronic disease management, particularly in light of the popularity of GLP-1 medications for weight loss. The company's GLP-1 Companion Success Track, while still representing a minority of new members, has shown promising results. Patients on this track reportedly lost 28% more weight than those on other programs.

Wei-Li Shao, President of Omada, highlighted the broader impact of GLP-1 medications on the industry: "GLP-1 has become a tailwind for the broader business writ large." The company has established partnerships with major pharmacy benefit managers, including CVS Caremark and Cigna's EncircleRx, to offer its GLP-1 support programs.

Multi-Condition Approach and AI Integration

Omada's success is partly attributed to its multi-condition approach, which allows customers to manage multiple chronic conditions through a single platform. This strategy has led to increased adoption, with 31% of existing clients now using multiple products, up from 26% in 2024.

The company has also emphasized its use of artificial intelligence to enhance personalized coaching and support care team efficiency. In May, Omada introduced OmadaSpark, an AI agent designed to analyze nutritional content and conduct motivational interviewing to help members understand their eating behaviors.

CEO Sean Duffy stated, "We're part of a new generation of digital health companies leveraging AI and telehealth to make healthcare more accessible and effective."

As Omada Health continues to navigate the evolving digital health landscape, its strong debut as a public company signals positive momentum for the sector. With full-year revenue expectations set between $235 million and $241 million, the company appears well-positioned to capitalize on the growing demand for comprehensive chronic disease management solutions.