Omada Health (OMDA) Q3 2025: Member Base Expands 53% as GLP-1 and AI Drive Platform Leverage
Omada Health’s Q3 saw a surge in member growth and operating leverage, fueled by strong GLP-1 demand, AI-driven engagement, and disciplined cost scaling. Multi-condition adoption and rapid innovation in both therapeutics and AI capabilities are reshaping the business model and positioning Omada for durable margin expansion. With a new prescribing initiative and robust channel partnerships, the company is entering 2026 with momentum and strategic flexibility to address evolving payer and employer needs.
Summary
- Multi-Condition Adoption Accelerates: Integrated platform strategy deepens customer stickiness and broadens TAM.
- AI and GLP-1 Innovation Fuel Growth: New product launches and digital engagement tools drive sustained member expansion.
- Margin Expansion Sets Up 2026 Investment: Operating leverage supports reinvestment in prescribing, AI, and channel scale.
Performance Analysis
Omada Health delivered a breakout quarter, with membership up 53% year-over-year to 831,000 and revenue rising 49% to $68 million. Growth was broad-based, but GLP-1 care track, GLP-1 therapeutics support program, saw continued outsized demand, acting as both a direct revenue driver and a catalyst for cross-selling the broader cardiometabolic suite. Notably, the company’s multi-condition platform strategy is producing visible results: 75% of new channel partner customers adopted multiple Omada programs, underscoring the appeal of integrated care versus point solutions.
Gross margin expanded sharply, reaching 68% on an adjusted basis, up 300 basis points year-over-year, driven by operational efficiencies from Omada’s proprietary care team platform and AI tools. Operating expenses rose 26%, well below revenue growth, demonstrating strong operating leverage. The company posted its first positive adjusted EBITDA quarter, signaling a credible path toward sustainable profitability even as it prepares for increased investment in 2026. Management’s guidance raise for both revenue and EBITDA margin reflects confidence in the durability of current momentum.
- Channel Partner Leverage: New channel deals drove significant net new members and multi-program adoption.
- AI-Driven Engagement: Tools like Omada Spark and MealMap increased member retention and engagement metrics.
- Marketing Efficiency: 60% improvement in campaign efficacy year-over-year supported member growth at lower cost.
Growth is increasingly self-reinforcing: Product innovation, channel expansion, and operating discipline are compounding Omada’s competitive position, even as the company signals a step-up in strategic investment for 2026.
Executive Commentary
"Our long-term mission at Omada is simple but bold. bend the curve for the more than 150 million Americans living with chronic conditions, such as prediabetes and obesity, diabetes, hypertension, and musculoskeletal disease. We pursue this mission on behalf of employers and health plans that seek healthier populations at lower costs. And during the third quarter, I believe we demonstrated meaningful progress towards this mission."
Sean Duffy, Co-Founder & CEO
"A key driver of our gross margin progress was the efficiency gained through our self-built care team platform, which we have continued to enhance by adding capabilities such as an AI care team tool designed to help our care team provide more efficient and effective care."
Steve Cook, Chief Financial Officer
Strategic Positioning
1. GLP-1 Prescribing and Therapeutic Flexibility
Omada’s launch of GLP-1 prescribing, integrating branded anti-obesity medications into its care model, is a pivotal move. The offering is designed to be configurable for employer clients, addressing the growing complexity of obesity therapeutics—oral and injectable, multiple price points, and varied benefit strategies. The solution leverages Omada’s behavioral intelligence, engagement data, and wraparound support to optimize both clinical outcomes and cost management for payers.
2. AI-Enabled Member and Care Team Experience
AI is now foundational to Omada’s engagement and care delivery model. Omada Spark, the AI-powered agent, and MealMap, an AI-driven nutrition tool, are demonstrating increased member engagement and retention. Early results show higher likelihood of app return and more consistent meal tracking, driving both clinical outcomes and member stickiness. Internally, AI is also improving care team efficiency and productivity, directly supporting gross margin expansion.
3. Multi-Condition Platform Strategy
Integrated, multi-condition adoption is now a significant growth lever. The majority of Omada’s new business and upsell is multi-product, and 31% of customers now use more than one program. Channel partners and consulting relationships are scaling this effect, with large employers embedding Omada’s full cardiometabolic suite, not just point solutions. This platform approach increases customer loyalty, salesforce leverage, and average revenue per customer.
4. Research-Backed Outcomes and Cost Savings
Omada’s 30th peer-reviewed publication, focused on joint and muscle health, demonstrated >$100 per member per month savings and a 1.8x ROI, validating the clinical and financial efficacy of its virtual care model. Real-world evidence from the GLP-1 care track showed sustained weight maintenance post-therapy, challenging the narrative of inevitable weight rebound and reinforcing Omada’s value proposition to payers.
5. Channel and Pipeline Momentum
New channel partnerships, including a large partner representing 180,000 individuals, are ramping ahead of schedule, with most launches set for January. The pipeline reflects double-digit deal growth versus last year’s Q3, and the selling season is not yet over. Notably, 75% of new channel partner customers opted for multi-program offerings, highlighting the appeal of Omada’s integrated approach.
Key Considerations
Omada’s Q3 performance reflects a business model that is scaling efficiently, with strong demand tailwinds and operational discipline. The strategic context is defined by:
Key Considerations:
- GLP-1 Prescribing as Differentiator: The move to integrate prescribing is a direct response to payer complexity and should enhance both revenue and margin as it matures.
- AI as Competitive Moat: Early success with AI-powered engagement and care tools positions Omada to drive both top-line growth and gross margin expansion.
- Multi-Product Penetration: The platform approach is increasing ARPU and customer loyalty, reducing sales friction and expanding Omada’s addressable market.
- Channel Scale and Pipeline Strength: Large partner launches and robust pipeline activity set up a strong start to 2026, with most new deals launching in January.
- Efficiency Enables Investment: Operating leverage is freeing up capacity for increased investment in product, AI, and go-to-market, supporting Omada’s long-term 20%+ EBITDA margin target.
Risks
Omada faces risks as it scales its prescribing initiative, including execution complexity, regulatory scrutiny, and the need to rapidly adapt to evolving payer and pharmaceutical pricing dynamics. The commercial viability of GLP-1s in Medicare and the competitive response from incumbents and new entrants could impact Omada’s pricing power and margin trajectory. Additionally, maintaining gross margin gains while investing heavily in 2026 will test operational discipline.
Forward Outlook
For Q4 2025, Omada guided to:
- Revenue of $69 million (implied, sequentially up from Q3)
- Continued positive adjusted EBITDA, with margin improvement expected
For full-year 2025, management raised guidance:
- Revenue of $251.5–$254.5 million (up from $235–$241 million prior)
- Adjusted EBITDA range of negative $2 million to break even (improved from negative $9–$5 million prior)
Management emphasized:
- 2026 will be a key investment year, with targeted spend in GLP-1 prescribing, AI, and product enhancements
- Gross margin is expected to remain strong, with a long-term target of 70% and EBITDA margin of 20%+
Takeaways
Omada’s Q3 results highlight a business at an inflection point, leveraging platform scale, product innovation, and operational discipline to accelerate profitable growth.
- Margin Expansion Validates Model: Gross margin and EBITDA improvement signal that Omada’s integrated platform and AI investments are driving durable efficiency.
- GLP-1 and AI Set Up Durable Growth: Prescribing and digital engagement tools are deepening employer and payer relationships, positioning Omada to capture a larger share of the chronic care market.
- 2026 Investment Cycle Will Test Execution: Investors should monitor the impact of stepped-up investment on margin trajectory and Omada’s ability to maintain growth in a dynamic payer environment.
Conclusion
Omada Health’s Q3 marked a step change in scale, efficiency, and strategic ambition. With strong multi-condition adoption, AI-driven engagement, and a new GLP-1 prescribing offering, the company is positioned to lead in the evolving chronic care landscape. The next year will be pivotal as Omada balances investment with profitability and navigates shifting payer and regulatory dynamics.
Industry Read-Through
Omada’s platform leverage and rapid GLP-1 adoption signal a broader shift in chronic care management: Employers and payers are demanding integrated, outcome-driven solutions rather than fragmented point offerings. Virtual care models that blend behavioral support, advanced therapeutics, and AI-powered engagement are gaining traction and margin leverage. Competitors in digital health, virtual care, and chronic disease management must accelerate platform integration and AI capabilities or risk falling behind. The evolving payer landscape, especially around GLP-1 pricing and Medicare coverage, will reshape the economics and competitive dynamics for all players in the space.