Omada Health, Inc.

Previous 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”); a prescribing capability for GLP-1s and other anti-obesity medications (“AOMs”); and behavioral health support across all programs. As of June 30, 2026, we had approximately 1,091,000 total members enrolled in one or more programs.

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”); a prescribing capability for GLP-1s and other anti-obesity medications (“AOMs”); and behavioral health support across all programs. As of September 30, 2026, we had approximately 1,134,000 total members enrolled in one or more programs.

Previous 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.

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 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

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 79% and 76% of our revenue for the three months ended June 30, 2026 and 2025, respectively, and 79% and 75% for the six months ended June 30, 2026 and 2025, 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 76% of our revenue for the three months ended September 30, 2026 and 2025, respectively, and 78% and 75% for the nine months ended September 30, 2026 and 2025, respectively.

Previous 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 June 30, 2026 and December 31, 2025 or 10% or more of revenue as of and for the three and six months ended June 30, 2026 and 2025 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 September 30, 2026 and December 31, 2025 or 10% or more of revenue as of and for the three and nine months ended September 30, 2026 and 2025 were as follows:

Previous wording

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 intend to elect to recover these costs ratably over 2025 and 2026 and recognized a deduction of approximately $36.1 million in 2025 to such expenditures.

Current wording

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 intend to elect to recover these costs ratably over 2025 and 2026 and recognize a deduction of approximately $36.1 million in 2025 to such expenditures.

Previous wording

Comparison of the Three and Six Months Ended June 30, 2026 and 2025

Current wording

Comparison of the Three and Nine Months Ended September 30, 2026 and 2025

Previous wording

Total revenue increased by $26.5 million, or 43%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Total revenue increased by $49.5 million, or 43% for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

Current wording

Total revenue increased by $23.3 million, or 34%, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. Total revenue increased by $72.8 million, or 40%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.

Previous wording

Services revenue increased by $23.7 million, or 42%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by an increase of $26.2 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 June 30, 2026 increasing by 48% compared to the average for the three months ended June 30, 2025. The increase was partially offset by a $2.4 million decrease primarily attributable to lower average service fees per member and a greater portion of revenue allocated to hardware, rather than services, due to incrementally higher device cost compared to prior year. See Revenue Recognition in Note 2 of our Annual Report on Form 10-K.

Current wording

Services revenue increased by $22.2 million, or 35%, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily driven by an increase of $24.6 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 September 30, 2026 increasing by 41% compared to the average for the three months ended September 30, 2025. The increase was partially offset by a $2.9 million decrease primarily attributable to lower average service fees per member and a greater portion of revenue allocated to hardware, rather than services, due to incrementally higher device cost compared to prior year. See Revenue Recognition in Note 2 of our Annual Report on Form 10-K.

Previous wording

Hardware revenue increased by $2.7 million, or 62%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by growth 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, with the average number of total members during the three months ended June 30, 2026 increasing by 45% compared to the average for the three months ended June 30, 2025. The increase also reflects higher average hardware fees per member, due to a greater portion of revenue allocated to hardware as device costs increased year over year. See Revenue Recognition in Note 2 of our Annual Report on Form 10-K.

Current wording

Hardware revenue increased by $1.1 million, or 22%, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily driven by a $1.5 million increase in higher average hardware fees per member, due to a greater portion of revenue allocated to hardware as device costs increased year over year, offset by $0.4 million decrease from a lower net change in total members. See Revenue Recognition in Note 2 of our Annual Report on Form 10-K.

Previous wording

Services revenue increased by $43.8 million, or 41%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven by an increase of $49.8 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 thesix months ended June 30, 2026 increasing by 49% compared to the average for thesix months ended June 30, 2025. The increase was partially offset by a $5.9 million decrease primarily attributable to lower average service fees per member, and a greater portion of revenue allocated to hardware, rather than services, due to incrementally higher device cost compared to prior year. See Revenue Recognition in Note 2 of our Annual Report on Form 10-K.

Current wording

Services revenue increased by $66.0 million, or 39%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily driven by an increase of $72.3 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 thenine months ended September 30, 2026 increasing by 44% compared to the average for thenine months ended September 30, 2025. The increase was partially offset by a $6.5 million decrease primarily attributable to lower average service fees per member, and a greater portion of revenue allocated to hardware, rather than services, due to incrementally higher device cost compared to prior year. See Revenue Recognition in Note 2 of our Annual Report on Form 10-K.

Previous wording

Hardware revenue increased by $5.7 million, or 58%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven bya 45% 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. The increase also reflects higher average hardware fees per member, due to a greater portion of revenue allocated to hardware as device costs increased year over year. See Revenue Recognition in Note 2 of our Annual Report on Form 10-K.

Current wording

Hardware revenue increased by $6.8 million, or 46%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily driven by higher average hardware fees per member of $2.9 million, due to a greater portion of revenue allocated to hardware as device costs increased year over year. See Revenue Recognition in Note 2 of our Annual Report on Form 10-K. The increase also reflects an increase of $2.7 million related to a 36% 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 $3.0 million, or 14%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Total cost of revenue increased by $9.3 million, or 21%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

Current wording

Total cost of revenue decreased by $0.9 million, or 4%, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. Total cost of revenue increased by $8.3 million, or 12%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.

Previous wording

Cost of services revenue increased by $0.9 million, or 7%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by a$0.5 million increase in technology infrastructure expenses and a $0.3 million increase in depreciation and amortization.

Current wording

Cost of services revenue increased by $0.5 million, or 4%, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily driven by a$0.6 million increase in technology infrastructure expenses and a $0.3 million increase in depreciation and amortization, partially offset by a$0.4 million decrease in personnel costs compared to the prior period.

Previous wording

Cost of services revenue increased by $2.6 million, or 10%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven by a $1.1 million increase in technology infrastructure expenses, a $1.0 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 $0.5 million increase in depreciation and amortization.

Current wording

Cost of services revenue increased by $3.2 million, or 8%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily driven by a $1.7 million increase in technology infrastructure expenses, a $0.8 million increase in depreciation and amortization and a $0.6 million increase in personnel costs related to our Care Teams, reflecting additional care activities in onboarding the higher number of new members enrolled in our programs compared to the prior-year period.

Previous wording

Cost of hardware revenue increased by $2.0 million, or 24%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by a 45% 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.

Current wording

Cost of hardware revenue increased by $5.2 million, or 18%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily driven by a 36% 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, partially offset by $0.6 million in tariff refunds compared to the prior period.

Previous wording

Gross profit increased by $23.5 million, or 58%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, driven by a 45% 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 $24.2 million, or 54%, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, driven by revenue growth primarily as a result of a 36% 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 7 percentage points for the three months ended June 30, 2026 compared to the three months ended June 30, 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.

Current wording

Gross margin increased by 10 percentage points for the three months ended September 30, 2026 compared to the three months ended September 30, 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, leveraging the expanded use of supporting technologies, such as tools for Care Team message support. Additionally, the increasing tenure of our member base led to a lower cost to care over time. Lastly, we experienced a decrease in tariff related costs for thethree months ended September 30, 2026.

Previous wording

Gross profit increased by $40.3 million, or 58%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, driven by a 45% increase in total members and by 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.

Current wording

Gross profit increased by $64.5 million, or 55%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, driven by revenue growth primarily as a result of a 36% increase in total members and by 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.

Previous wording

Gross margin expanded by 6 percentage points for the six months ended June 30, 2026 compared to the six months ended June 30, 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.

Current wording

Gross margin increased by 7 percentage points for the nine months ended September 30, 2026 compared to the nine months ended September 30, 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, leveraging the expanded use of supporting technologies, such as tools for Care Team message support. Additionally, the increasing tenure of our member base led to a lower cost to care over time. Lastly, we experienced a decrease in tariff related costs for thenine months ended September 30, 2026.

Previous wording

Research and development expenses increased by $4.6 million, or 46%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by a $4.3 million increase in personnel costs related to an increase in headcount and a $0.4 million increase in technology infrastructure expenses, partially offset by a $0.1 million decrease in third-party consulting and professional services.

Current wording

Research and development expenses increased by $5.0 million, or 48%, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily driven by a $4.2 million increase in personnel costs related to an increase in headcount and a $1.0 million increase in technology infrastructure expenses, partially offset by a $0.2 million decrease in third-party consulting and professional services.

Previous wording

Research and development expenses increased by $8.5 million, or 45%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven by a $7.8 million increase in personnel costs related to an increase in headcount and a $0.8 million increase in technology infrastructure expenses.

Current wording

Research and development expenses increased by $13.5 million, or 46%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily driven by a $12.0 million increase in personnel costs related to an increase in headcount and a $1.8 million increase in technology infrastructure expenses, partially offset by a $0.3 million decrease in third-party consulting and professional services.

Previous wording

Sales and marketing expenses increased by $7.6 million, or 34%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by a $3.1 million increase in personnel costs related primarily to an increase in headcount, a $2.0 million increase in administrative and marketing fees that we paid to channel partners for their services in support of our member enrollments, a $2.0 million increase in other marketing programs and sales commissions, and a $0.4 million increase in third-party consulting and professional services.

Current wording

Sales and marketing expenses increased by $6.2 million, or 27%, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily driven by a $2.9 million increase in personnel costs related primarily to an increase in compensation, stock-based compensation expense and headcount, a $1.6 million increase in administrative and marketing fees that we paid to channel partners for their services in support of our member enrollments, a $1.0 million increase in third-party consulting and professional services and a $0.6 million increase in other marketing programs and sales commissions.

Previous wording

Sales and marketing expenses increased by $14.2 million, or 33%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven by a $5.1 million increase in personnel costs related primarily to an increase in headcount, a $4.8 million increase in administrative and marketing fees that we paid to channel partners for their services in support of our member enrollments, a $3.2 million increase in other marketing programs and sales commissions, and a $1.0 million increase in third-party consulting and professional services.

Current wording

Sales and marketing expenses increased by $20.4 million, or 31%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily driven by a $8.0 million increase in personnel costs related primarily to an increase in compensation, stock-based compensation expense and headcount, a $6.4 million increase in administrative and marketing fees that we paid to channel partners for their services in support of our member enrollments, a $3.8 million increase in other marketing programs and sales commissions, and a $2.0 million increase in third-party consulting and professional services.

Previous wording

General and administrative expenses increased by $6.1 million, or 26%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven by a $4.1 million increase in personnel costs related to an increase in headcount, a $0.7 million increase intechnology infrastructure expenses, a $0.7 million increase in bad debt expense, and a $0.6 million increase in business insurance expenses.

Current wording

General and administrative expenses increased by $11.8 million, or 31%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily driven by a $6.3 million increase in personnel costs related to an increase in headcount, a $2.4 million one time charge related to tax obligations, a $1.1 million increase intechnology infrastructure expenses, a $0.8 million increase in bad debt expense, and a $0.6 million increase in business insurance expenses.

Previous wording

Interest expense decreased by $2.1 million, or 99%, for the six months ended June 30, 2026 compared to the six months ended June 30, 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.

Current wording

Interest expense decreased by $0.1 million, or 26%, for the three months ended September 30, 2026 compared to the three months ended September 30, 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, with the remaining expenses related to other obligations.

Previous wording

Interest expense decreased by $1.1 million, or 99%, for the three months ended June 30, 2026 compared to the three months ended June 30, 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.

Current wording

Interest expense decreased by $2.2 million, or 88%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 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 $2.2 million, or 155%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven by interest earned from the increase in cash and cash equivalents from IPO proceeds.

Current wording

Interest income increased by $2.2 million, or 63%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily driven by interest earned from the increase in cash and cash equivalents from IPO proceeds.

Previous wording

The change in fair value of warrant liabilities decreased by $0.7 million, or 100%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by the cashless exercise of the convertible preferred stock and common stock warrants during the year ended December 31, 2025.

Current wording

The change in fair value of warrant liabilities decreased by $0.2 million, or 100%, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily driven by the cashless exercise of the convertible preferred stock and common stock warrants during the year ended December 31, 2025.

Previous wording

The change in fair value of warrant liabilities decreased by $1.3 million, or 100%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven by the cashless exercise of the convertible preferred stock and common stock warrants during the year ended December 31, 2025.

Current wording

The change in fair value of warrant liabilities decreased by $1.5 million, or 100%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily driven by the cashless exercise of the convertible preferred stock and common stock warrants during the year ended December 31, 2025.

Previous wording

We typically close a higher percentage of sales to new customers, as well as renewals or expansions with existing customers, in the second and third quarters, aligning with benefits enrollment schedules and allowing us to launch our products at the start of the following year. This seasonality generally leads to higher new member enrollment in the first and second quarters, resulting in increased Care Team costs to support the newly enrolled members. These higher new member enrollments also require shipments of new devices to newly enrolled members in the same quarter of enrollment or the beginning of the following quarter and increased hardware revenue in those periods. These increased costs result in lower overall gross margins in those quarters and there is typically a decrease in these costs in subsequent quarters. After the effects of these early program costs of new enrollments, increases in the number of members will generally be reflected in increased revenue in subsequent quarters as services revenue is generally recognized in arrears after the provision of our virtual care programs begins.

Current wording

We typically close a higher percentage of sales to new customers, as well as renewals or expansions with existing customers, in the second and third quarters, aligning with benefits enrollment schedules and allowing us to launch our products at the start of the following year. This seasonality generally leads to higher new member enrollment in the first and second quarters, resulting in increased Care Team costs to support the newly enrolled members. These higher new member enrollments also require shipments of new devices to newly enrolled members in the same quarter of enrollment or

Previous 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 June 30, 2026, our principal sources of liquidity were cash and cash equivalents of $221.7 million and working capital of $219.4 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 September 30, 2026, our principal sources of liquidity were cash and cash equivalents of $243.2 million and working capital of $239.7 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 $454.4 million as of June 30, 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”).

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 $447.9 million as of September 30, 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., a former subsidiary of Omada Health, Inc. which was dissolved as of September 30, 2026, 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

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.

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 historically 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 six months ended June 30, 2026 of $7.8 million was the result of a $2.3 millionnet income, adjusted for $16.1 million of non-cash adjustments and $26.2 million of net cash outflow from changes in operating assets and liabilities. The non-cash adjustments consisted primarily of $9.8 million of share-based compensation expense, $3.1 million of depreciation and amortization expense, $1.9 million of amortization of deferred commissions, and a $1.2 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 $23.2 million increase in accounts receivable, a $4.4 million decrease in accrued expenses and other current liabilities, a $2.9 million increase in deferred commissions, a $0.1 million increase in other non-current assets, and a $0.3 million increase in prepaid and other current assets, partially offset by a $2.6 million increase in deferred revenue, a $1.5 million increase in accounts payable, and a $0.4 million decrease in inventory.

Current wording

Net cash provided by operating activities during the nine months ended September 30, 2026 of $7.3 million was the result of $8.9 million ofnet income, adjusted for $25.7 million of non-cash adjustments and $27.3 million of net cash outflow from changes in operating assets and liabilities. The non-cash adjustments consisted primarily of $15.7 million of share-based compensation expense, $4.8 million of depreciation and amortization expense, $2.9 million of amortization of deferred commissions, and a $2.3 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 $15.9 million increase in accounts receivable, a $6.6 million increase in prepaid and other current assets, a $3.6 million increase in deferred commissions, a $2.1 million decrease in accounts payable, a $0.4 million increase in inventory and a $0.3 million increase in other non-current assets, partially offset by a $0.8 million increase in deferred revenue, and a $0.8 million increase in accrued expenses and other current liabilities.

Previous wording

Net cash used in operating activities during the six months ended June 30, 2025 of $13.3 million was the result of a $14.8 million net loss, adjusted for $12.3 million of non-cash adjustments and $10.8 million of net cash outflow from changes in operating assets and liabilities. The non-cash adjustments consisted primarily of $5.7 million of share-based compensation expense, $2.7 million of depreciation and amortization expense, $1.6 million of amortization of deferred commissions, $1.3 million increase in the fair value of warrant liabilities, a $0.5 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 a $10.4 million increase in accounts receivable, a $4.8 million decrease in accrued expenses and other current liabilities, a $1.4 million increase in deferred commissions, a $0.9 million increase in prepaid and other current assets, a $0.4 million decrease in operating lease liabilities, and a $0.2 million increase in inventory, partially offset by a $6.0 million increase in deferred revenue, a $1.0 million increase in accounts payable, a $0.1 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 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 a $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 $7.8 million increase in accrued expenses and other current liabilities, a $7.6 million increase in deferred revenue, a $1.4 million increase in accounts payable, a $0.2 million decrease in other non-current assets, and a $0.1 million decrease in inventory.

Previous wording

Net cash used in investing activities during the six months ended June 30, 2026 of$3.2 million was the result of capitalized internal-use software costs of $3.0 million and purchases of property and equipment of $0.2 million.

Current wording

Net cash used in investing activities during the nine months ended September 30, 2026 of$4.9 million was the result of capitalized internal-use software costs of $4.5 million and purchases of property and equipment of $0.3 million.

Previous wording

Net cash used in investing activities during the six months ended June 30, 2025 of $2.5 million was the result of capitalized internal-use software costs of $1.9 million and purchases of property and equipment of $0.6 million.

Current wording

Net cash used in investing activities during the nine months ended September 30, 2025 of $4.5 million was the result of capitalized internal-use software costs of $3.4 million and purchases of property and equipment of $1.1 million.

Previous wording

Net cash provided by financing activities for the six months ended June 30, 2026 of $10.7 million was the result of $11.4 million of proceeds from the exercise of stock options, partially offset by$0.7 million of taxes paid related to net share settlement of equity awards.

Current wording

Net cash provided by financing activities for the nine months ended September 30, 2026 of $18.7 million was the result of $20.0 million of proceeds from the exercise of stock options, partially offset by$1.3 million of taxes paid related to net share settlement of equity awards.

Previous wording

Net cash provided by financing activities for the six months ended June 30, 2025 of $162.5 million was the result of $160.5 million of proceeds from the IPO net of underwriting discounts and commissions and $3.9 million of proceeds from the exercise of stock options, partially offset by $1.9 million of payments for deferred offering expenses.

Current 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.

Previous wording

Purchase commitments. Our unconditional purchase commitments primarily consist of technology and cloud services related to our daily business operations. As of June 30, 2026, we had $4.6 million of unconditional purchase commitments due in 2026 and $6.6 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.

Current wording

Purchase commitments. Our unconditional purchase commitments primarily consist of technology and cloud services related to our daily business operations. As of September 30, 2026, we had $2.4 million of unconditional purchase commitments due in 2026 and $7.8 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.