In its first public earnings call after its initial public offering in June, virtual chronic disease provider Omada Health reported $61 million in revenue, up 49% year over year. The company has added 52% more members since Q2 2024 for a total of 752,000 members.
Omada went public in early June, at a valuation of $1.1 billion, during what has turned out to be a worse-than-expected year for digital health exits due to economic uncertainty and tariffs. Hinge Health, a virtual MSK solution, also went public in May and reported its Q2 earnings on Wednesday.
Omada ties remote monitoring devices with coaching and AI to help consumers control their chronic diseases. The company treats diabetes, hypertension, obesity and musculoskeletal conditions and leans on its multi-condition approach to differentiate itself from competitors.
Omada reported a 66% GAAP gross margin and a 68% non-GAAP gross margin in the second quarter, which it said improved over the prior year. The company improved on its net GAAP loss from $11 million in Q2 2024 to $5 million in Q2 2025. Omada’s adjusted EBITDA loss in Q2 was $200,000 compared to a $7 million loss during the same period a year ago.
Wei Li Shao, president of Omada, told Fierce Healthcare in a post-earnings interview that the majority of the 49% topline growth this quarter came from growth in Omada’s standard cardiometabolic programs. Shao said RFK Jr.’s Make America Healthy Again campaign and the popularity of GLP-1s for weight loss have increased buyers’ awareness and interest in Omada’s core offerings.
“I think the administration's focus on chronic disease is contributing to the writ large increase of the dialogue around chronic disease, like cardiometabolic disease,” Shao said. “I think we're seeing this 360-degree surround sound that's creating top of mind, front of mind, focus on cardiometabolic disease, and so we see that as a tailwind that is driving more interest in our programs.”
The Centers for Medicare and Medicaid Services (CMS) also just delivered a win to virtual diabetes prevention providers like Omada by proposing to pay for the services in its annual physician pay rule proposal. The program has been a key lobbying priority for Omada for years.
Sean Duffy, CEO of Omada, touted the company’s use of AI for personalized coaching and to support the efficiency of its care team. The company added OmadaSpark, an AI agent, to its platform in May, which identifies the nutritional content of food and conducts motivational interviewing to help members understand their food behaviors.
Duffy said Omada is part of a new generation of digital health companies leveraging AI and telehealth. Shao added that AI chatbots are making healthcare more accessible by providing services on patients’ schedules.
A significant topic during the earnings presentation and investor Q&A was Omada’s companion program for people using GLP-1s. Despite the hype around the blockbuster products, the GLP-1 Companion Success Track still represents a minority of its members and its growth during the quarter, executives said.
“With the discussion around GLP-1s, cardiometabolic disease overall is getting a lot more play, a lot more understanding,” Shao said. “If you just look at your social media feed, it's full of things about exercise, diet, ultra-processed foods, weight and all that. All of those are a constellation of points that all point to cardiometabolic disease. So, unfortunately, the majority of Americans suffer from some degree of cardiometabolic disease. And so that's why we're seeing, I think, significant growth there.”
Patients on the GLP-1 track lost 28% more weight than customers on other tracks, and even customers who discontinued their GLP-1s but started the track maintained their weight loss four months after discontinuation, according to the company.
In addition to working with employers that cover the GLP-1 medications, Omada partners with two of the biggest pharmacy benefit managers, CVS Caremark and Evernorth, which offer Omada to their members. Executives said they will continue to invest in the GLP-1 space.
“These results demonstrate the benefits of a modest, clinically rigorous approach to behavior change,” Shao told investors on the earnings call. “In sponsoring and publishing research, we seek to demonstrate our outcomes, bolster credibility and strengthen our position in the market. We believe our clinical leadership differentiates us amidst a crowded market of digital health solutions.”
Executives expect a strong second half, as health plans finalize their benefits for the upcoming plan year. Omada’s full-year revenue expectations are $235 million to $241 million, and it is projecting adjusted EBITDA loss to be in the range of a loss of $9 million to a loss of $5 million.