Omada Health, Inc.
For the period ended Mar 31, 2026. Filed May 8, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 8, 2026
OMDA$15.09-20.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001628280-25-050622
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0001628280-26-032875
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 172 previous paragraphs and 129 current paragraphs.
81 unchanged; 37 reworded; 11 added; 49 removed; 5 previous and 0 current paragraphs rearranged.
Tables are not compared: 18 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
Other Income (Expense), Net
Current report
As of December 31, 2025, the Company remains subject to examination by U.S. federal and state taxing authorities for all tax years since inception, as net operating loss carryforwards remain subject to adjustment.
Current report
On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, including changes to the treatment of research and development expenditures under Section 174 of the Internal Revenue Code of 1986, as amended (the “Code”), modifications to the business interest expense limitation, and updates to depreciation rules, among others. Certain provisions are effective beginning in 2025, while others are phased in through 2027.
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Under the OBBBA and newly enacted Section 174A of the Code, taxpayers may accelerate the recovery of previously capitalized domestic research and development expenditures that remained unamortized as of 2025, either entirely in 2025 or ratably over 2025 and 2026. We have elected to recover these costs ratably over 2025 and 2026 and recognized a deduction of approximately $36.1 million in 2025 to such expenditures.
Current report
Certain state jurisdictions have not conformed to the OBBBA or have adopted different approaches to the treatment of expenditures under Section 174 of the Code. We have considered the impact of state conformity in material jurisdictions for purposes of determining its income tax provision. The ultimate tax treatment of these items will be finalized upon the filing of our income tax returns.
Current report
Other provisions of the OBBBA, including changes to bonus depreciation and international tax rules, did not have a material impact on our consolidated financial statements due to taxable losses, a full valuation allowance on deferred tax assets, or inapplicability to our operations.
Current report
Total revenue increased by $23.1 million, or 42%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.
Current report
Cost of services revenue increased by $1.7 million, or 13%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven by a $0.9 million increase in personnel costs related toour Care Teams, reflecting additional care activities in onboarding the higher number of new members enrolled in our programs compared to the prior-year period, and a $0.6 million increase in technology infrastructure expenses.
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Other Income (Expense), Net
Current report
The change in fair value of warrant liabilities decreased by $0.5 million, or 100%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven by the cashless exercise of the convertible preferred stock and common stock warrants during the year ended December 31, 2025.
Current report
The obesity and weight health market is rapidly evolving, with a surge in GLP‑1 adoption creating a broader spotlight on obesity and cardiometabolic disease more generally. As these medications draw significant attention—and cost—employers and health plans are under increasing pressure to balance access with affordability, making it difficult for many to offer broad GLP‑1 coverage. In this environment, we believe Omada is well positioned to support customers across a range of coverage strategies: for those that cover GLP‑1s, our GLP‑1 companion programs are designed to help enhance medication effectiveness and durability; for those that do not, our proven prevention and weight health program, together with our broader cardiometabolic offerings, provides an evidence‑based path to improving weight and metabolic health without relying on expensive drugs. As a result, increased focus on GLP‑1s has contributed to demand for our solutions among both employers that cover these medications and those that do not. In addition, we recently announced the capability to prescribe GLP-1 therapies and other AOM as an extension of our GLP-1 support offerings, reflecting our proactive approach to evolving care models and meeting customer needs, while continuing to innovate on traditional care protocols.
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Previous report
We sell our programs to customers that cover the cost for covered individuals. Our customers include employers that cover our programs for their employees and their dependents, health systems that cover our programs for patients, and any other entity that is financially responsible for costs of our programs for a population of covered lives. We also work closely with health plans and PBMs that either cover our programs for a portion of their members as our customers or act as channel partners reselling our programs to their own end customers. Our channel partners’ end customers typically consist of employers that cover our programs for their employees and their dependents. In general, our customers cover the cost of our programs for our members, except that members in our physical therapy program may incur copays, coinsurance, or deductibles, depending on plan design, much like in-person physical therapy.
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Since our founding, our programs have had a meaningful, positive impact. As of September 30, 2025, we had over 831,000 total members enrolled in one or more programs. We count a member as enrolled in a program to the extent their participation was billed at least once in the preceding 12 months. We believe our programs serve a clear need for our customers and channel partners as well as our members, which is reinforced by our strong customer satisfaction and member engagement rates. We consider members to be still engaged after one year or two years in the program if, during their twelfth or twenty-fourth month of program participation in a cardiometabolic program, they complete at least one interaction with us, such as logging in or interacting with the Omada mobile app, sending messages to Omada Care Team members, or recording metrics such as weight, blood pressure, or blood glucose values.
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Our History
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Since launching our first program in 2012, we observed a demand from our customers and channel partners for us to expand beyond diabetes prevention and weight management and into other conditions, such as the treatment and management of diabetes, hypertension, and MSK conditions. The significant overlap across these chronic conditions created a natural growth avenue by enabling a coordinated, context-informed care approach across conditions.
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•Omada for Prevention & Weight Health: Omada for Prevention & Weight Health, our first program launched in 2012, focuses on prediabetes and weight management, two critical elements of preventing diabetes and heart
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disease. Informed by guidelines and recommendations set by the U.S. Preventive Services Task Force and the Centers for Disease Control and Prevention (the “CDC”), the goal of the program is to enable members to lose weight, maintain a healthy weight, and increase physical activity. We pair members with a dedicated health coach for the entirety of their experience and support them with a connected scale, a personalized learning path, and support from peer groups to build community.
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In 2018, demand from customers and channel partners, member need, and clinically appropriate interventions came together in an opportunity to expand our offering to support members with diabetes and hypertension leveraging our existing, flexible platform. Considering this market need and feedback, we decided to launch Omada for Diabetes, Omada for Hypertension, and the combined Omada for Diabetes and Hypertension programs. We refer to these, along with our Omada Prevention & Weight Health program, as our cardiometabolic programs.
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•Omada for Diabetes: Launched in 2018, Omada for Diabetes is designed to help members with type 1 or type 2 diabetes achieve stable blood glucose levels and meet and reach their goals for reducing hemoglobin A1C (“A1C”) (a measure of blood glucose levels over the past three months) based in part on treatment guidelines from the American Diabetes Association. Because most people with type 2 diabetes have obesity or are overweight, we also support members with reaching and maintaining a healthy weight through modifications in diet, exercise, and other behaviors. Members are paired with a dedicated, professionally trained health coach who acts as their primary contact, except in the case of members living with type 1 diabetes, whose primary contact is a Certified Diabetes Care and Education Specialist. Care Teams for members with type 2 diabetes also include a Certified Diabetes Care and Education Specialist, in addition to the member’s primary contact. Members are also provided with connected third-party devices based on their needs, which can include a connected scale and a blood glucose meter. We can also facilitate prescriptions for connected glucose monitor sensors at certain points in the program through a third-party care partner to improve understanding of behavior and blood glucose levels. As in our Prevention & Weight Health program, members are engaged with a personalized learning path and supported by peer groups.
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•Omada for Hypertension: Launched in 2018, Omada for Hypertension is designed to help reduce members’ blood pressure and help them maintain healthy blood pressure based on clinical protocols recommended by the American Medical Association, the American College of Cardiology, and the American Heart Association. As with type 2 diabetes, hypertension is often comorbid with obesity. We help members in need of weight management support in reaching and maintaining a healthy weight through modifications to diet, exercise, and other behaviors. Members are paired with a dedicated, professionally trained health coach and a Certified Diabetes Care and Education Specialist who provide support and resources to improve blood pressure control through connected blood pressure monitors, secure asynchronous messaging, and group board discussions, as well as frequent and proactive check-ins. As in our Prevention & Weight Health program, members are engaged with a personalized learning path and supported by peer groups.
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•Omada for MSK: Launched in 2020, Omada for MSK connects individuals to licensed physical therapists for consultation and virtual treatment. Our program provides members access to treatment in as little as 24 hours from enrollment. We match clinically eligible patients with a dedicated physical therapist and provide ongoing access through video visits and asynchronous chat. Omada-affiliated physical therapists assign evidence-based treatment exercises and stretches to members, and the program helps members complete their prescribed care path at the recommended cadence. Physical therapists can assess patient progress through form analysis (by video), range of motion (by computer vision technology), and patient reports (in-app feedback). Members can also access an individualized education curriculum to help build healthy habits that support recovery and long-term health. Our education library includes hundreds of pieces of content, ranging from articles to interactive media and videos.
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•Omada GLP-1 Care Tracks: First launched in 2023, the initial version of Omada’s GLP-1 Care Track, currently embedded in our cardiometabolic programs, is designed to support members on a GLP-1 therapy—while also engaged in one of those programs—to enable their success before, during, and after GLP-1 therapy. Omada does not develop GLP-1 therapies and historically has not prescribed GLP-1 therapies. Rather, our GLP-1 Care Tracks have generally been intended to build and enhance outcomes from the combination of our virtual programs and the member’s medication, with the ultimate goal of supporting members to achieve and maintain weight loss long-term—even after they decide to discontinue GLP-1 therapy. While the initial version of our GLP-1 Care Track is embedded in each of our cardiometabolic programs, customers and channel partners are also able to
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purchase an enhanced version (the “Enhanced GLP-1 Care Track”), which includes more specialized programming and support.
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Business Model Overview
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We have experienced strong growth since our inception. Revenue increased 49% to $68.0 million from $45.5 million for the three months ended September 30, 2025 and 2024, respectively, and increased 51% to $184.4 million from $121.8 million for the nine months ended September 30, 2025 and 2024, respectively. We incurred net losses of $3.2 million and $9.2 million for the three months ended September 30, 2025 and 2024, respectively, and $17.9 million and $38.9 million for the nine months ended September 30, 2025 and 2024, respectively.
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We sell our programs to customers that cover the cost for covered individuals. Our customers include employers that cover our programs for their employees and their dependents, health systems that cover our programs for patients, and any other entity that is financially responsible for costs of our programs for a population of covered lives. We also work closely with health plans and PBMs that either cover our programs for a portion of their members as our customers or act as channel partners reselling our programs to their own end customers. Our channel partners’ end customers typically consist of employers that cover our programs for their employees and their dependents. In general, our customers cover the cost of our programs for our members, except that members in our physical therapy program may incur copays, coinsurance, or deductibles, depending on plan design, much like in-person physical therapy.
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We generate revenue from sales to our customers and channel partners for the services that we provide to members. We generate services revenue by providing access to our programs for prevention & weight health, diabetes, hypertension, and MSK conditions and hardware revenue from connected third-party devices, which are provided to the member upon enrollment in our cardiometabolic programs. Upfront payments or billings received from customers and channel partners are initially recorded as deferred revenue on the balance sheet and recognized as revenue as we fulfill our obligations.
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Go-To-Market Strategy
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Our go-to-market strategy follows a business-to-business-to-consumer (“B2B2C”) motion, and as of September 30, 2025, we had over 831,000 total members enrolled in one or more programs that were billable in the preceding 12 months. We sell primarily to employers, who either contract with Omada directly or obtain access to our programs through a channel partner, such as a health plan or PBM, and a key part of our go-to-market strategy is winning new employer contracts during the annual benefits selling season. During that time, our sales and marketing team engages with human resources professionals, benefits managers, and decision makers across various industries to sign up new customers. We sell our programs directly to customers and through channel partners. This selling season typically spans from late spring to early fall, aligning implementation with benefits enrollment schedules and allowing us to launch our products for customers at the start of the following year.
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The remainder of our revenue is derived from our inclusion as a benefit in fully insured health plans, from PBMs through specific therapeutic programs, or via health systems that assume the cost of care for their patients. We leverage our partner sales team, which engages with health plans and PBMs, to identify new, and expand existing, partner channels through which we can sell directly to partners’ end customers or access and enroll their members.
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Enrollment and Outreach
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After a customer or channel partner contracts with us, we collaborate to support enrollment of covered employees or dependents, covered health plan or PBM members, or patients. Our customer experience and partner management teams, account executives, and engineering and product teams work together to support technical implementation and launch of outreach communications before members begin enrolling into our programs. We work with our customers and channel partners to increase awareness through outreach campaigns designed to inform eligible members of their ability to join the respective Omada program. Outreach campaigns can be led by the customer or channel partner or led by Omada, leveraging our preferred methods and materials. The cost of our enrollment and outreach teams are recognized primarily within sales and marketing expense.
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Care Team and Devices
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Once a member enrolls in an Omada program, we support the member with an Omada Care Team and our member-facing application, and we provide the member with a set of connected third-party devices. Each Care Team consists of a primary health coach or specialist, additional relevant specialists where applicable, and/or a licensed physical therapist, depending on the program. Member Support Agents also provide device and platform support to members across all programs, via phone, email, and self-service support articles. The connected third-party devices supplied in connection with our programs can include scales, blood pressure monitors, blood glucose monitors, and continuous glucose monitors. The cost of our Care Team and our connected third-party devices are all recognized within cost of revenue.
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Other Expense, Net
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On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We are currently assessing its impact on our consolidated financial statements.
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Total revenue increased by $22.5 million, or 49%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Total revenue increased $62.5 million, or 51%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.
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Hardware revenue increased by $5.5 million, or 58%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily driven by a 53% increase in total members, reflecting new members enrolled in our programs compared to the prior-year period, which directly drove the number of devices that we delivered.
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Cost of services revenue increased by $2.0 million, or 19%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily driven by a $1.8 million increase in personnel costs related in part to an increase in headcount.
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Cost of services revenue increased $6.4 million, or 20%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily driven by a $5.5 million increase in personnel costs related in part to an increase in headcount and a $0.6 million increase in amortization of capitalized internal-use software costs.
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Cost of hardware revenue increased by $9.6 million, or 50%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily driven by a 53% increase in total members, reflecting new members enrolled in our programs compared to the prior-year period, which drove new devices, supplies, fulfillment costs, which include tariffs, compared to the prior period.
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Gross profit increased by $46.5 million, or 66%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, driven by a 53% increase in total members and a decrease in personnel costs per total member needed to support enrolled members as a result of Care Team efficiency initiatives, as well as the expanded use of supporting technologies, such as tools for Care Team message support.
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Research and development expenses increased $2.4 million, or 9%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily driven by a $1.4 million increase in personnel costs related primarily to an increase in headcount and stock-based compensation per employee and a $1.0 million increase in technology infrastructure expenses, professional and outside services costs.
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Sales and marketing expenses increased by $15.5 million, or 31%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily driven by a $9.2 million increase in administrative and marketing fees that we paid to channel partners for their services in support of our member enrollments, a $4.2 million increase in personnel costs related primarily to an increase in headcount and increases in compensation expenses per employee, and a $2.3 million increase in other marketing programs and sales commissions, offset by a $0.3 million decrease in professional and outside services.
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General and administrative expenses increased by $7.4 million, or 24%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily driven by a $3.8 million increase in personnel costs related primarily to an increase in headcount, increases in compensation expenses per employee, and increased travel and entertainment costs associated with our IPO, a $0.9 million increase in technology infrastructure expenses, a $0.9 million increase in professional and outside services costs related to preparing for public company operations, a $0.7 million increase in bad debt expenses, a $0.5 million increase in business insurance expenses, a $0.4 million increase in local taxes.
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Other Expense, Net
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Interest expense decreased by $0.9 million, or 26%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to the extinguishment of our MidCap Term Facility and MidCap Revolving Facility on July 31, 2025.
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Loss on Debt Extinguishment
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The change in loss on debt extinguishment increased by $2.1 million, or 100%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 due to the extinguishment of our MidCap Term Facility and MidCap Revolving Facility on July 31, 2025.
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The change in loss on debt extinguishment increased by $2.1 million, or 100%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due to the extinguishment of our MidCap Term Facility and MidCap Revolving Facility on July 31, 2025.
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The change in fair value of warrant liabilities increased by $0.6 million, or 150%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily driven by changes in the stock price, expected stock volatility, risk-free rate, and reduction in time to expiry.
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Reworded paragraphs (37)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from management’s expectations as a result of various factors, including, but not limited to, those discussed in the sections titled “Risk Factors” and “Special Note Regarding Forward-Looking Statements.”
Current wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from management’s expectations as a result of various factors, including, but not limited to, those discussed in the sections titled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements.”
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We launched our initial program in diabetes prevention and weight health in 2012, with the goal of showing that a virtual program could achieve the same clinical results as its in-person archetype. Through feedback from our customers, channel partners, members, and the market at large, we then recognized the need to create an integrated, multi-condition care platform to address multiple, commonly comorbid, chronic conditions. Today, we offer cardiometabolic programs for prediabetes, diabetes, and hypertension; a physical therapy program to address musculoskeletal (“MSK”) conditions; additional support for members taking glucagon-like peptide-1 agonists (“GLP-1”) in our cardiometabolic programs (“GLP-1 Care Tracks”); and behavioral health support across all programs. As we have expanded, we have kept our integrated human and technology approach at the center of our business model and have continued to base our program design on clinically validated evidence.
Current wording
Our mission is to bend the curve. Our hope is that, one day, tomorrow’s epidemiologists will notice a bend in disease curves, wonder what might be happening, and conclude that part of that impact has been Omada. As part of that mission, we strive to inspire and enable people to make lasting health changes on their own terms. We launched our initial program in diabetes prevention and weight health in 2012, with the goal of showing that a virtual program could achieve the same clinical results as its in-person archetype. Today, we offer cardiometabolic programs for prediabetes, diabetes, hypertension, and high cholesterol; a physical therapy program to address musculoskeletal (“MSK”) conditions; additional support for members taking glucagon-like peptide-1 agonists (“GLP-1”) in our cardiometabolic programs (“GLP-1 Care Tracks”); and behavioral health support across all programs. As of March 31, 2026, we had over 1,025,000 total members enrolled in one or more programs, surpassing one million total members for the first time.
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Our virtual care programs are rooted in evidence and combine relationship-based, human-led clinical care with purpose-built technology. We call this approach Compassionate Intelligence. We work to develop trust with each member and use technology to help us personalize their experience, enabling us to unlock results at scale.
Current wording
Our virtual care programs are rooted in evidence and combine relationship-based, human-led clinical care with purpose-built technology. We call this approach Compassionate Intelligence. Our Care Teams, composed of health coaches, select relevant specialists, and licensed physical therapists, depending on the program, deliver healthcare to our members within the scope of their credentials. Our prescribing capability also incorporates third-party licensed obesity care providers for prescribing anti-obesity medications (“AOMs”) and related medication management, expanding the ways in which we can support customers and channel partners across a broader range of GLP-1 access models. Omada Care Teams are supported by our proprietary Care Team Platform that is purpose-built to magnify the impact of our Between-Visit Care model and drive operational excellence in a trusted and secure way. Broadly, our integrated technology platform supports activities across the entire lifecycle of our work with customers, channel partners, and members: from benefit eligibility confirmation and enrollment outreach to application and member onboarding, device management and fulfillment, member-facing tools and applications, Care Team tools, data capture and storage, and platform and billing infrastructure. The investments in our technology and Care Team Platform have enabled us to scale and serve over two million members since launch, while maintaining the ability to deliver an exceptional member experience, with high clinical quality and consistency.
Previous wording
We believe there is substantial opportunity to further grow our base of customers and channel partners in our large addressable market. Historically, we have relied on a limited number of customers and channel partners, including employers, health plans, PBMs, health systems, and government entities, for a substantial portion of our total sales. Our customers include employers that cover our programs for their employees and their dependents and health systems that cover our programs for patients, among other types of customers. In addition, our channel partners, which include certain of the health plans, PBMs, and other entities that we work with, operate as resellers of our programs to their employer customers or other end customers, which can limit an end customer’s ability to continue purchasing our programs if the customer no longer works with a particular channel partner. Some of the health plans and PBMs we work with as channel partners also cover our programs directly, for a portion of their own members, as our customers.
Current wording
We believe there is substantial opportunity to further grow our base of customers and channel partners in our large addressable market. Historically, we have relied on a limited number of customers and channel partners, including employers, health plans, pharmacy benefit managers (“PBMs”), health systems, and government entities, for a substantial portion of our total sales. Our customers include employers that cover our programs for their employees and their dependents and health systems that cover our programs for patients, among other types of customers. In addition, our channel partners, which include certain of the health plans, PBMs, and other entities that we work with, operate as resellers of our programs to their employer customers or other end customers, which can limit an end customer’s ability to continue purchasing our programs if the customer no longer works with a particular channel partner. Some of the health plans and PBMs we work with as channel partners also cover our programs directly, for a portion of their own members, as our customers.
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We seek to grow our business by acquiring more covered lives across multiple buyer categories: selling to new customers and channel partners as well as expanding within our existing channel partners to new lines of business. Our diverse go-to-market strategy affords us flexibility to pursue growth via multiple distinct channels, including through new channels and in lines of business where we have yet to place significant focus, such as Medicare Advantage.
Current wording
We seek to grow our business by acquiring more covered lives across multiple buyer categories: selling to new customers and channel partners as well as expanding within our existing channel partners to new lines of business. Our diverse go-to-market strategy affords us flexibility to pursue growth via multiple distinct channels, including across PBM, health plan, and employer pathways, and through new channels and in lines of business where we have yet to place significant focus, such as Medicare Advantage.
Previous wording
Our ability to increase revenue depends on maintaining relationships with customers and channel partners over time, driving both renewal revenue and expansion revenue as customers and channel partners add new programs to provide to their member base. We have invested and plan to continue to invest across our data, analytics, operations, and customer success capabilities to build the infrastructure that supports our go-to-market approach.
Current wording
Our ability to increase revenue depends on maintaining and deepening relationships with customers and channel partners over time, driving both renewal revenue and expansion revenue as customers and channel partners add new programs to provide to their member base. We have invested and plan to continue to invest across our data, analytics, operations, and customer success capabilities to build the infrastructure that supports our go-to-market approach.
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We believe that the ability to grow the share of revenue that we generate from existing customers is a key driver of long-term growth. We have seen significant expansion over time as existing customers and channel partners have added our newer Diabetes and Hypertension programs, and we remain focused on driving multi-program adoption as a key growth lever. We believe there is still opportunity to continue multi-condition expansion.
Current wording
We believe that the ability to grow the relative amount of revenue that we generate from existing customers is a key driver of long-term growth. We have seen significant expansion over time as existing customers and channel partners have added our newer programs, such as Diabetes, Hypertension, and Cholesterol, and we remain focused on driving multi-program adoption as a key growth lever. We believe that increased customer focus on GLP-1s and weight health may also support broader adoption of our cardiometabolic offerings over time. There is still opportunity to continue multi-condition expansion.
Previous wording
Having served over one million members since launch, there is still significant opportunity to enroll more members. We are focused on achieving higher enrollment rates by helping more customers and channel partners adopt our outreach best practices, including enabling Omada-led outreach campaigns, implementing strategies to reach individuals with known risk, and evaluating new enrollment strategies and channels.
Current wording
Having served over two million members since launch, there is still significant opportunity to enroll more members. We are focused on achieving higher enrollment rates by helping more customers and channel partners adopt our enrollment outreach best practices, including enabling Omada-led enrollment outreach campaigns, implementing strategies to reach individuals with known risk, and evaluating new enrollment strategies and channels.
Previous wording
Member engagement in our programs and the clinical outcomes and cost savings of our offerings affect the market acceptance and adoption of our programs. Most of our customers pay fees to us based on member enrollment and/or engagement with our programs, and our contracts generally may provide that we are obligated to repay a portion of our fees if our programs fail to deliver certain member engagement targets, clinical outcomes, or cost savings.
Current wording
Member engagement in our programs and the clinical outcomes and cost savings of our offerings affect the market acceptance and adoption of our programs. Most of our customers pay fees to us based on member enrollment and/or engagement with our programs, and our contracts generally may provide that we are obligated to repay a portion of our fees if our programs fail to deliver certain member engagement targets, clinical outcomes, or cost savings. We are focused on continuing to provide engaging content and tools, foster meaningful personal connections, and demonstrate positive clinical outcomes for our members.
Previous wording
Sales from or through our top five health plan and PBM partners, including any sales to these entities as customers and sales through these entities as channel partners, represented 76% and 70% of our revenue for the three months ended September 30, 2025 and 2024, respectively, and 75% and 69% for the nine months ended September 30, 2025 and 2024, respectively.
Current wording
Sales from or through our top five health plan and PBM partners, including any sales to these entities as customers and sales through these entities as channel partners, represented 78% and 73% of our revenue for the three months ended March 31, 2026 and 2025, respectively.
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Significant customers and channel partners are those which represent 10% or more of the accounts receivable balance or revenue for the periods presented. Customers and channel partners that accounted for 10% or more of accounts receivable, net as of September 30, 2025 and December 31, 2024 or 10% or more of revenue as of and for the three and nine months ended September 30, 2025 and 2024 were as follows:
Current wording
Significant customers and channel partners are those which represent 10% or more of the accounts receivable balance or revenue for the periods presented. Customers and channel partners that accounted for 10% or more of accounts receivable, net as of March 31, 2026 and December 31, 2025 or 10% or more of revenue as of and for the three months ended March 31, 2026 and 2025 were as follows:
Previous wording
Cost of revenue consists of expenses that are directly related to or closely correlated to the delivery of our virtual care programs and member support. Cost of services revenue include salaries, share-based compensation expense, bonuses, benefits, travel, and meals and entertainment expenses (collectively, “personnel costs”), data server management expense, hosting costs, connectivity fees for cellular devices, and the amortization of capitalized internal-use software and developed technology. Cost of hardware revenue includes equipment costs, shipping and logistics costs, and provisions for excess and obsolete inventory. Most of the devices delivered in connection with our programs are manufactured in China and may be manufactured in other international markets in the future, and we expect that the prices of these devices may increase as a result of recent tariffs and any new or increased tariffs in the future.
Current wording
Cost of revenue consists of expenses that are directly related to or closely correlated to the delivery of our virtual care programs and member support. Cost of services revenue includes salaries, share-based compensation expense, bonuses, benefits, travel, and meals and entertainment expenses (collectively, “personnel costs”), data server management expense, hosting costs, connectivity fees for cellular devices, and the amortization of capitalized internal-use software and developed technology. Cost of hardware revenue includes equipment costs, shipping and logistics costs, and provisions for excess and obsolete inventory. Most of the devices delivered in connection with our programs are manufactured in the Dominican Republic and China and may be manufactured in other international markets in the future, and we expect that the prices of these devices may increase as a result of recent tariffs and any new or increased tariffs in the future. In addition, the war in Iran has resulted in modest increases to device-related costs to date due to increased shipping costs.
Previous wording
We classify our redeemable convertible preferred stock warrants and common stock warrants as liabilities on our condensed consolidated balance sheets. We remeasure the warrant liabilities to fair value at each reporting date and recognize changes in the fair value of the warrant liabilities in our consolidated statements of operations. We will continue to adjust the warrant liabilities for changes in fair value until the earlier of the expiration or exercise of the redeemable convertible preferred stock warrants and common stock warrants.
Current wording
We classify our redeemable convertible preferred stock warrants and common stock warrants as liabilities on our condensed consolidated balance sheets. We remeasure the warrant liabilities to fair value at each reporting date and recognize changes in the fair value of the warrant liabilities in our consolidated statements of operations. We adjusted the warrant liabilities for changes in fair value until the exercise of the redeemable convertible preferred stock warrants and common stock warrants.
Previous wording
Comparison of the Three and Nine Months Ended September 30, 2025 and 2024
Current wording
Comparison of the Three Months Ended March 31, 2026 and 2025
Previous wording
Services revenue increased by $20.8 million, or 50%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily driven by an increase of $21.8 million related to growth in total members, with the average number of total members during the three months ended September 30, 2025 increasing by 52% compared to the average for the three months ended September 30, 2024.
Current wording
Services revenue increased by $20.1 million, or 41%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven by an increase of $24.1 million related to growth in total members due toacquisition of new customers and channel partners, sales of additional programs to our existing customers and continued progress in enrollment effectiveness, with the average number of total members during the three months ended March 31, 2026 increasing by 51% compared to the average for the three months ended March 31, 2025. The increase was partially offset by a $3.8 million aggregate decrease in average fees per member.
Previous wording
Hardware revenue increased by $1.7 million, or 49%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily driven by a 53% increase in total members, reflecting new members enrolled in our programs compared to the prior-year period, which directly drove the number of devices that we delivered.
Current wording
Hardware revenue increased by $3.0 million, or 55%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven bya 51% increase in total members, reflecting new members enrolled in our programs compared to the prior-year period, which directly drove the number of devices that we delivered.
Previous wording
Total cost of revenue increased by $6.0 million, or 35%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Total cost of revenue increased by $16.0 million, or 31%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.
Current wording
Total cost of revenue increased by $6.3 million, or 27%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.
Previous wording
Cost of hardware revenue increased by $4.0 million, or 63%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily driven by a 53% increase in total members, reflecting new members enrolled in our programs compared to the prior-year period, which drove new devices, supplies, fulfillment costs, which include tariffs, compared to the prior period.
Current wording
Cost of hardware revenue increased by $4.6 million, or 44%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven by a 51% increase in total members, reflecting new members enrolled in our programs compared to the prior-year period, which drove new devices, supplies, and fulfillment costs, which include tariffs, compared to the prior period.
Previous wording
Gross profit increased by $16.5 million, or 58%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, driven by a 53% increase in total members and by a decrease in personnel costs per total member needed to support enrolled members as a result of strategic efficiency initiatives such as improving the effectiveness of our Care Team interventions and Care Team time management (“Care Team efficiency initiatives”), as well as the expanded use of supporting technologies, such as tools that can surface helpful templates for our Care Team’s consideration in frequently recurring scenarios (“Care Team message support”).
Current wording
Gross profit increased by $16.8 million, or 53%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, driven by a 51% increase in total members and by a decrease in personnel costs per total member needed to support enrolled members as a result of strategic efficiency initiatives such as improving the effectiveness of our Care Team interventions and Care Team time management (“Care Team efficiency initiatives”), as well as the expanded use of supporting technologies, such as tools that can surface helpful templates for our Care Team’s consideration in frequently recurring scenarios (“Care Team message support”).
Previous wording
Gross margin expanded by 3.5 percentage points for the three months ended September 30, 2025 compared to the three months ended September 30, 2024.The expansion of gross margin was primarily driven by lower personnel costs per total member needed to support enrolled members as a result of Care Team efficiency initiatives as well as the expanded use of supporting technologies, such as tools for Care Team message support.
Current wording
Gross margin expanded by 4.3 percentage points for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The expansion of gross margin was primarily driven by lower personnel costs per total member needed to support enrolled members as a result of Care Team efficiency initiatives as well as the expanded use of supporting technologies, such as tools for Care Team message support.
Previous wording
Research and development expenses increased by $1.5 million, or 16%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily driven by a $1.0 million increase in personnel costs related primarily to an increase in headcount and a $0.5 million increase in technology infrastructure expenses and professional and outside services costs.
Current wording
Research and development expenses increased by $3.9 million, or 44%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven by a $3.5 million increase in personnel costs related to an increase in headcount and a $0.4 million increase in technology infrastructure expenses.
Previous wording
Sales and marketing expenses increased by $5.4 million, or 31%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily driven by a $3.2 million increase in administrative and marketing fees that we paid to channel partners for their services in support of our member enrollments, a $1.6 million increase in personnel costs related primarily to an increase in headcount and increases in compensation expenses per employee, and a $0.6 million increase in other marketing programs and sales commissions.
Current wording
Sales and marketing expenses increased by $6.6 million, or 33%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven by a $2.7 million increase in administrative and marketing fees that we paid to channel partners for their services in support of our member enrollments, a $2.1 million increase in personnel costs related primarily to an increase in headcount, a $1.2 million increase in other marketing programs and sales commissions, and a $0.6 million increase in third-party consulting and professional services.
Previous wording
General and administrative expenses increased by $3.7 million, or 35%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily driven by a $2.0 million increase in personnel costs related primarily to an increase in headcount and increases in compensation expenses per employee, a $0.7 million increase in bad debt expenses, a $0.4 million increase in business insurance expenses, and a $0.3 million increase in professional and outside services costs.
Current wording
General and administrative expenses increased by $2.7 million, or 24%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven by a $2.4 million increase in personnel costs related to an increase in headcount and a $0.4 million increase in business insurance expenses, partially offset by a $0.5 million decrease in professional and outside services costs.
Previous wording
Interest expense decreased by $0.8 million, or 69%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to the extinguishment of our MidCap Term Facility and MidCap Revolving Facility on July 31, 2025.
Current wording
Interest expense decreased by $1.1 million, or 98%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to the extinguishment of our financing arrangements with MidCap Funding IV Trust on July 31, 2025, as discussed in “Liquidity and Capital Resources” below.
Previous wording
Interest income increased by $2.0 million, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily driven by interest earned from the increase in cash and cash equivalents from IPO proceeds.
Current wording
Interest income increased by $1.3 million, or 237%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven by interest earned from the increase in cash and cash equivalents from IPO proceeds.
Previous wording
Since our inception, we have financed our operations primarily through proceeds from issuance of our redeemable convertible preferred stock, debt financing agreements, and cash generated from the sale of our products and services. As of September 30, 2025, our principal sources of liquidity were cash and cash equivalents of $198.6 million and working capital of $184.8 million. Cash and cash equivalents are composed of cash held in sweep accounts, checking accounts, and money market funds. Our principal use of cash is to fund our operations and invest in R&D to support our growth.
Current wording
Since our inception, we have financed our operations primarily through proceeds from issuance of our redeemable convertible preferred stock and common stock, debt financing agreements, and cash generated from the sale of our products and services. On June 9, 2025, we completed our IPO and received proceeds of approximately $151.6 million, after deducting underwriting discounts and commissions and offering expenses. As of March 31, 2026, our principal sources of liquidity were cash and cash equivalents of $211.8 million and working capital of $200.7 million. Cash and cash equivalents are composed of cash held in sweep accounts, checking accounts, and money market funds. Our principal use of cash is to fund our operations and invest in R&D to support our growth.
Previous wording
We have generated significant losses from operations and negative cash flows from operating activities in the past, as reflected in our accumulated deficit of $461.9 million as of September 30, 2025. We believe that our current cash and cash equivalents will be sufficient to fund our operations for at least the next 12 months. Our future capital requirements, however, will depend on many factors, including our growth rate, the timing and extent of our sales and marketing and R&D expenditures, the continuing market acceptance of our products and services, and the use of cash to fund potential mergers or acquisitions. In the event that additional financing is required from outside sources, we may seek to raise additional funds through equity, equity-linked arrangements, and debt. If we are unable to raise additional capital when desired and on acceptable terms, our business, results of operations, and financial condition could be materially and adversely affected.
Current wording
We have generated significant losses from operations and negative cash flows from operating activities in the past, as reflected in our accumulated deficit of $459.7 million as of March 31, 2026. We believe that our current cash and cash equivalents will be sufficient to fund our operations for at least the next 12 months. Our future capital requirements, however, will depend on many factors, including our growth rate, the timing and extent of our sales and marketing and R&D expenditures, the continuing market acceptance of our products and services, and the use of cash to fund potential mergers or acquisitions. In the event that additional financing is required from outside sources, we may seek to raise additional funds through equity, equity-linked arrangements, and debt. If we are unable to raise additional capital when desired and on acceptable terms, our business, results of operations, and financial condition could be materially and adversely affected. In June 2023, we entered into a financing arrangement with Physera, Inc., MidCap Funding IV Trust (“MidCap”), as administrative agent, MidCap Financial Trust, as term loan servicer, certain funds managed by MidCap, as lenders, and the lenders, additional borrowers, and guarantors from time to time party thereto (as amended, restated, amended and restated, supplemented, or otherwise modified from time to time, the “MidCap Credit Agreement”), for a senior secured term loan (the “MidCap Term Facility”) in an aggregate principal amount of up to $60.0 million, with up to $30.0 million available upon the initial closing date and up to $30.0 million available for draw from October 2024 through March 2025 and a revolving line of credit facility (the “MidCap Revolving Facility”).
Previous wording
On July 31, 2025, the Company used a portion of its IPO proceeds and fully repaid outstanding amounts under the MidCap Term Facility and MidCap Revolving Facility with the principal and accrued interest balances of $31.0 million and $0.4 million, respectively. The repayment of the MidCap Term Facility and MidCap Revolving Facility was accounted for as a debt extinguishment. The consideration used to extinguish the MidCap Term Facility and MidCap Revolving Facility and the carrying value of the debt instruments (including unamortized debt issuance costs) resulted in a loss on early extinguishment of debt of $2.1 million included in loss on early extinguishment of debt within our condensed consolidated statements of operations.
Current wording
On July 31, 2025, we used a portion of the IPO proceeds to fully repay outstanding amounts under the MidCap Term Facility and MidCap Revolving Facility with the principal and accrued interest balances of $31.0 million and $0.4 million, respectively.
Previous wording
Our largest source of operating cash flows is cash collections from our customers who purchase access to our programs for their members. Our primary use of cash in operating activities is for personnel and related expenses, marketing expenses, and third-party hosting and software costs. We have incurred negative cash flows from operating activities and have supplemented working capital requirements through net proceeds from the sale of redeemable convertible preferred stock and proceeds from debt financing arrangements.
Current wording
Our largest source of operating cash flows is cash collections from our customers who purchase access to our programs for their members. Our primary use of cash in operating activities is for personnel and related expenses, marketing expenses, and third-party hosting and software costs. We have incurred negative cash flows from operating activities and have supplemented working capital requirements through net proceeds from the sale of redeemable convertible preferred stock and common stock, and proceeds from debt financing arrangements.
Previous wording
Net cash used in operating activities during the nine months ended September 30, 2025 of $3.1 million was the result of a $17.9 million net loss, adjusted for $21.5 million of non-cash adjustments and $6.7 million of net cash outflow from changes in operating assets and liabilities. The non-cash adjustments consisted primarily of $9.2 million of share-based compensation expense, $4.0 million of depreciation and amortization expense, $2.5 million of amortization of deferred commissions, a $2.1 million increase in loss on debt extinguishment, a $1.5 million increase in the fair value of warrant liabilities, a $1.5 million increase in the provision for credit losses, $0.4 million of amortization of operating lease right-of-use assets, and $0.3 million of amortization of debt issuance costs. The net cash outflow from changes in operating assets and liabilities was primarily the result of an $19.5 million increase in accounts receivable, a $2.3 million increase in deferred commissions, a $1.6 million increase in prepaid and other current assets, and a $0.4 million decrease in operating lease liabilities, partially offset by a $7.6 million increase in deferred revenue, a $7.8 million increase in accrued expenses and other current liabilities, a $1.4 million increase in accounts payable, a $0.2 million decrease in other non-current assets, and a and a $0.1 million decrease in inventory.
Current wording
Net cash used in operating activities during the three months ended March 31, 2026 of $11.8 million was the result of a $3.0 millionnet loss, adjusted for $7.5 million of non-cash adjustments and $16.3 million of net cash outflow from changes in operating assets and liabilities. The non-cash adjustments consisted primarily of $4.2 million of share-based compensation expense, $1.5 million of depreciation and amortization expense, $1.0 million of amortization of deferred commissions, and a $0.8 million increase in the provision for credit losses. The net cash outflow from changes in operating assets and liabilities was primarily the result of a $9.2 million decrease in accrued expenses and other current liabilities, a $6.2 million increase in accounts receivable, a $2.2 million increase in deferred commissions, a $2.1 million decrease in accounts payable, a $1.5 million increase in prepaid and other current assets, and a $0.1 million increase in other non-current assets, partially offset by a $4.3 million increase in deferred revenue and a $0.7 million decrease in inventory.
Previous wording
Net cash used in operating activities during the nine months ended September 30, 2024 of $27.7 million was the result of a $38.9 million net loss, adjusted for $13.7 million of non-cash adjustments and $2.5 million of net cash outflow from changes in operating assets and liabilities. The non-cash adjustments consisted primarily of $7.1 million in share-based compensation expense, $3.5 million of depreciation and amortization expense, $1.9 million of amortization of deferred commissions, $0.8 million increase in the provision for credit losses, $0.5 million of amortization of operating lease right-of-use assets, and $0.3 million of amortization of debt issuance costs, partially offset by $0.4 million decrease in fair value of warrants. The net cash outflow from changes in operating assets and liabilities was primarily the result of a $9.7 million increase in accounts receivable, a $4.9 million increase in deferred commissions, a $1.7 million increase in accrued expenses and other current liabilities, a $0.6 million increase in prepaid and other current assets, and a $0.5 million decrease in operating lease liabilities, partially offset by a $7.8 million increase in deferred revenue, a $1.8 million decrease in inventory, a $1.5 million increase in accounts payable, a $0.3 million decrease in other non-current assets, and a $0.1 million increase in other non-current liabilities.
Current wording
Net cash used in operating activities during the three months ended March 31, 2025 of $16.1 million was the result of a $9.4 million net loss, adjusted for $6.4 million of non-cash adjustments and $13.0 million of net cash outflow from changes in operating assets and liabilities. The non-cash adjustments primarily consisted of $2.8 million in share-based compensation expense, $1.3 million of depreciation and amortization expense, $0.7 million of amortization of deferred commissions, $0.6 million in provision for credit losses, $0.5 million in fair value of warrant liabilities, $0.2 million of amortization of operating lease right-of-use assets, and $0.1 million of amortization of debt issuance costs. The net cash outflow from changes in operating assets and liabilities was primarily the result of a $8.4 million decrease in accrued expenses and other current liabilities, a $6.5 million increase in accounts receivable, a $1.2 million increase in deferred commissions, a $0.6 million increase in prepaid and other current assets, and a $0.2 million decrease in operating lease liabilities, partially offset by a $3.3 million increase in deferred revenue, a $0.3 million decrease in inventory, and a $0.3 million increase in accounts payable.
Previous wording
Net cash used in investing activities during the nine months ended September 30, 2025 of $4.5 million was the result of purchases of property and equipment of $1.1 million and capitalized internal-use software costs of $3.4 million.
Current wording
Net cash used in investing activities during the three months ended March 31, 2026 of$1.6 million was the result of capitalized internal-use software costs of $1.5 million and purchases of property and equipment of $0.1 million.
Previous wording
Net cash used in investing activities during the nine months ended September 30, 2024 of $2.9 million was the result of purchases of property and equipment of $0.4 million and capitalized internal-use software costs of $2.5 million.
Current wording
Net cash used in investing activities during the three months ended March 31, 2025 of $1.2 million was the result of purchases of property and equipment of $0.3 million and capitalized internal-use software costs of $0.9 million.
Previous wording
Net cash provided by financing activities for the nine months ended September 30, 2025 of $129.8 million was the result of $160.5 million of proceeds from the IPO net of underwriting discounts and commissions and $6.0 million of proceeds from the exercise of stock options, partially offset by $31.0 million of repayment of debt principal, $4.3 million of payments for offering expenses and $1.4 million of payments for debt extinguishment costs.
Current wording
Net cash provided by financing activities for the three months ended March 31, 2026 of $3.1 million was the result of $3.2 million of proceeds from the exercise of stock options, partially offset by$0.1 million of taxes paid related to net share settlement of equity awards.
Previous wording
Net cash used by financing activities for the nine months ended September 30, 2024 of $1.3 million was the result of $3.4 million of payments for offering expenses, partially offset by $2.0 million of proceeds from the exercise of stock options.
Current wording
Net cash provided by financing activities for the three months ended March 31, 2025 of $0.4 million was the result of $0.9 million of proceeds from the exercise of stock options, partially offset by $0.5 million of payments for deferred offering costs.
Previous wording
Purchase commitments. Our unconditional purchase commitments primarily consist of technology and cloud services related to our daily business operations. As of September 30, 2025, we had $2.1 million of unconditional purchase commitments due in 2025 and $8.4 million due in 2026 and thereafter. The purchase obligation amounts do not represent the entire anticipated purchases in the future but represent only those items for which we are contractually obligated. The majority of our goods and services are purchased as needed, with no unconditional commitment. For this reason, these amounts do not provide an indication of our expected future cash outflows related to purchases. See Note 6 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Current wording
Purchase commitments. Our unconditional purchase commitments primarily consist of technology and cloud services related to our daily business operations. As of March 31, 2026, we had $4.4 million of unconditional purchase commitments due in 2026 and $5.5 million due in 2027 and thereafter. The purchase obligation amounts do not represent the entire anticipated purchases in the future but represent only those items for which we are contractually obligated. The majority of our goods and services are purchased as needed, with no unconditional commitment. For this reason, these amounts do not provide an indication of our expected future cash outflows related to purchases. See Note 5 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Previous wording
Our condensed consolidated financial statements and the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q are prepared in accordance with GAAP. The preparation of condensed consolidated financial statements in accordance with GAAP requires us to make certain estimates, judgements, and assumptions that affect the reported amounts of assets and liabilities and the related disclosures as of the date of the financial statements, as well as reported amounts of revenue and expenses during the period presented. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ significantly from our estimates. To the extent that there are differences between our estimates and actual results, our future
Current wording
Our condensed consolidated financial statements and the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q are prepared in accordance with GAAP. The preparation of condensed consolidated financial statements in accordance with GAAP requires us to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and the related disclosures as of the date of the financial statements, as well as reported amounts of revenue and expenses during the period presented. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ significantly from our estimates. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, results of operations, and cash flows could be affected. There have been no material changes to our critical accounting policies and estimates as described in our Annual Report.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
Our mission is to bend the curve. Our hope is that, one day, tomorrow’s epidemiologists will notice a bend in disease curves, wonder what might be happening, and conclude that part of that impact has been Omada. As part of that mission, we strive to inspire and enable people to make lasting health changes on their own terms. We deliver virtual care between doctor’s visits, providing an engaging, personalized, and integrated experience for our members that is designed to improve their health while delivering value for the employers, health plans, health systems, pharmacy benefit managers (“PBMs”), and other entities that cover the cost of our programs.
Previous report — wording carried elsewhere
Services revenue increased by $57.0 million, or 51%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily driven by an increase of $56.8 million related to growth in total members, with the average number of total members during the nine months ended September 30, 2025 increasing by 50% compared to the average for the nine months ended September 30, 2024.
Previous report — wording carried elsewhere
Gross margin expanded by 5.5 percentage points for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The expansion of gross margin was primarily driven by lower personnel costs per total member needed to support enrolled members as a result of Care Team efficiency initiatives, as well as the expanded use of supporting technologies, such as tools for Care Team message support.
Previous report — wording carried elsewhere
Interest income increased by $2.8 million, or 441%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily driven by interest earned from the increase in cash and cash equivalents from IPO proceeds.
Previous report — wording carried elsewhere
financial statement presentation, financial condition, results of operations, and cash flows could be affected. There have been no material changes to our critical accounting policies and estimates as described in our Prospectus.