Omada Health (OMDA) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Omada Health (OMDA) Healthcare & Pipeline Overview

Omada Health delivers virtual care programs for chronic conditions, distinguishing itself through clinically validated, digitally delivered interventions. Addressing cardiometabolic disease, musculoskeletal issues, and behavioral health, Omada operates in the expanding healthcare information services sector, leveraging technology to improve patient outcomes and access to care.

What Is the Investment Thesis for OMDA?

With a gross margin of 65.5%, Omada demonstrates a strong ability to generate profit from its services. Key value drivers include the increasing adoption of virtual care, the rising prevalence of chronic diseases, and Omada's ability to deliver clinically validated programs that improve patient outcomes and reduce healthcare costs. The company's partnerships with employers and health plans provide a stable revenue stream and opportunities for further expansion. The beta of 1.33 suggests higher volatility compared to the market. Growth catalysts include expanding into new therapeutic areas, increasing market penetration, and forming strategic partnerships. Potential risks include competition from other virtual-care providers, regulatory changes, and the need to continuously demonstrate the effectiveness of its programs.

Based on FMP financials and quantitative analysis

OMDA Key Highlights

Market Cap of $1.28B reflects Omada Health's valuation in the virtual care market.

• Gross Margin of 65.5% indicates strong profitability in delivering virtual care services.
• Profit Margin of -4.9% suggests the company is still investing in growth and expansion.
• Beta of 1.33 indicates higher volatility compared to the market, potentially due to its growth stage.
• Focus on chronic conditions aligns with the increasing prevalence of these diseases and the growing demand for virtual care solutions.

Who Are OMDA's Competitors?

OMDA is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are OMDA's Key Strengths?

Clinically validated programs

• Established partnerships with employers and health plans
• Data-driven insights and personalized approach
• Comprehensive virtual-care platform

What Are OMDA's Weaknesses?

Profit Margin is negative

• Reliance on partnerships for revenue
• Competition from established healthcare providers and digital health companies
• Limited brand recognition compared to larger players

What Could Drive OMDA Stock Higher?

OMDA catalyst: Expansion into new therapeutic areas, such as women's health or dermatology, to broaden the company's addressable market.

• Increased adoption of virtual care by employers and health plans, driven by the need to reduce healthcare costs and improve access to care.
• New clinical data demonstrating the effectiveness of Omada's programs in improving patient outcomes and reducing healthcare costs (expected Q4 2026).
• Strategic partnerships with other healthcare providers and technology companies to expand Omada's capabilities and market reach.

What Are the Key Risks for OMDA?

Rich valuation — a P/E of 316.64 runs well above the Healthcare sector’s ~21.50x, leaving little room for a miss.

• Insider selling — insiders were net sellers of roughly $1.7M recently.
• Increased competition from other virtual-care providers, including established healthcare companies and emerging digital health startups.
• Regulatory changes and healthcare policy that could impact the reimbursement of virtual-care services.
• Data security and privacy breaches that could damage Omada's reputation and lead to legal liabilities.
• The need to continuously demonstrate the effectiveness of Omada's programs in improving patient outcomes and reducing healthcare costs.

What Are the Growth Opportunities for OMDA?

• Expansion into New Therapeutic Areas: Omada Health has the opportunity to expand its virtual-care programs into new therapeutic areas beyond its current focus on cardiometabolic disease, musculoskeletal care, and behavioral health. This could include areas such as dermatology, women's health, or oncology. The market for virtual specialty care is estimated to reach $75 billion by 2030, presenting a significant growth opportunity for Omada. By leveraging its existing platform and expertise, Omada can efficiently launch new programs and attract new customers.
• Increased Market Penetration: Omada Health can increase its market penetration by expanding its partnerships with employers, health plans, and health systems. The company can target new customer segments, such as small and medium-sized businesses, or expand its reach within existing customer accounts. The market for virtual chronic condition management is estimated to reach $40 billion by 2027, providing ample opportunity for Omada to grow its customer base and revenue.
• Strategic Partnerships and Acquisitions: Omada Health can pursue strategic partnerships and acquisitions to expand its capabilities and market reach. This could include partnering with other digital health companies, acquiring complementary technologies, or expanding into new geographic markets. Strategic partnerships can provide access to new customers, technologies, and expertise, while acquisitions can accelerate growth and expand Omada's product offerings.
• International Expansion: Omada Health has the opportunity to expand its virtual-care programs into international markets. The demand for virtual care is growing globally, driven by factors such as increasing healthcare costs, aging populations, and the growing adoption of technology. By adapting its programs to meet the needs of different markets, Omada can tap into new sources of revenue and growth. The global virtual care market is expected to reach $55 billion by 2027.
• Data-Driven Personalization: Omada Health can further leverage its data and analytics capabilities to personalize its programs and improve patient outcomes. By analyzing patient data, Omada can identify individual needs and preferences and tailor its programs accordingly. This can lead to improved engagement, adherence, and ultimately, better health outcomes.

What Are OMDA's Competitive Advantages?

• Clinically Validated Programs: Omada's programs are backed by clinical evidence, demonstrating their effectiveness in improving patient outcomes.
• Established Partnerships: Omada has established partnerships with major employers, health plans, and health systems, providing a stable revenue stream and a competitive advantage.
• Data-Driven Insights: Omada leverages data and analytics to personalize its programs and improve patient engagement and outcomes.
• Integrated Platform: Omada's platform integrates personalized coaching, connected devices, and data-driven insights, providing a comprehensive virtual-care solution.

What Does OMDA Do?

Omada Health, founded with the mission to transform healthcare through technology, is a virtual-care provider based in the United States. The company focuses on delivering clinically validated programs for individuals managing chronic conditions. These programs, offered digitally between traditional doctor visits, address critical areas such as cardiometabolic disease (including diabetes and heart health), musculoskeletal care, and behavioral health. Omada's approach integrates personalized coaching, connected devices, and data-driven insights to empower individuals to make sustainable lifestyle changes and improve their health outcomes. Since its inception, Omada Health has evolved from a diabetes-focused program to a comprehensive virtual-care platform addressing multiple chronic conditions. This expansion reflects the growing recognition of the interconnectedness of various health challenges and the need for integrated, holistic care. Omada partners with employers, health plans, and health systems to provide its programs to their members and patients. By leveraging technology, Omada aims to improve access to high-quality care, reduce healthcare costs, and enhance the overall patient experience. The company's commitment to clinical rigor and data-driven results has positioned it as a leader in the rapidly growing virtual-care market.

What Products and Services Does OMDA Offer?

• Provides virtual care programs for chronic conditions.
• Offers clinically validated programs for cardiometabolic disease.
• Delivers digital interventions for musculoskeletal care.
• Provides behavioral health support through virtual platforms.
• Partners with employers, health plans, and health systems.
• Uses personalized coaching and connected devices to improve patient outcomes.
• Employs data-driven insights to empower individuals to make sustainable lifestyle changes.

How Does OMDA Make Money?

• Generates revenue through contracts with employers, health plans, and health systems.
• Charges fees for its virtual-care programs based on enrollment and engagement.
• Offers subscription-based access to its platform and services.

What Industry Does OMDA Operate In?

Omada Health operates within the rapidly expanding healthcare information services industry, driven by the increasing adoption of virtual care and the growing prevalence of chronic diseases. The market is characterized by intense competition, with numerous players offering digital health solutions. Omada differentiates itself through its focus on clinically validated programs and its partnerships with employers and health plans. The industry is expected to continue to grow rapidly, fueled by technological advancements, increasing healthcare costs, and the growing demand for convenient and accessible care. Omada is well-positioned to capitalize on these trends, but faces challenges from established healthcare providers and emerging digital health companies.

Who Are OMDA's Key Customers?

• Employers seeking to improve the health and productivity of their employees.
• Health plans looking to reduce healthcare costs and improve member outcomes.
• Health systems aiming to expand access to care and improve patient satisfaction.

Omada Health (OMDA) Valuation Context

Valued at $1.28B, OMDA is classified as a small-cap stock. Analyst price targets span from $18.00 to $35.00, with a consensus of $25.63. At the current price of $21.50, that implies approximately 19% upside potential. Relative to its peer group, OMDA's quantitative score of 43/100 is below the peer average of 57/100.

OMDA Revenue & Earnings Trend

In Q2 FY2026, OMDA generated $87.8M in top-line revenue, marking a sequential increase of 12.5%. The company recorded net income of $5.3M, with diluted EPS of $0.08. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this small-cap Healthcare company. Across the four most recent quarters, OMDA averaged $0.02 in diluted EPS.

Company Profile

Omada Health operates in the Health Information Services industry within the Healthcare sector. It is headquartered in South San Francisco, United States.

Return on equity for Omada Health stands at 1.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.3%, showing how much profit it generates from its asset base. OMDA trades at a trailing price-to-earnings ratio of 316.64, above the Healthcare sector average of ~21.50x. Its free cash flow yield is 1.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 3.91 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 0.3%, the inverse of the P/E and a quick read on earnings relative to price.

Omada Health's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 10.01 places it in the safe zone, indicating low near-term bankruptcy risk.

Omada Health has beaten Wall Street's EPS estimate in 5 of its last 6 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 104.5% above estimates on average.

Over the past six months, Omada Health insiders filed 30 SEC Form 4 transactions — 21 sales and 9 purchases. On net that is roughly 69K shares disposed (about $1.7M), a signal worth weighing alongside the fundamentals.

OMDA Financials

OMDA Latest News

OMDA Analyst Consensus

OMDA MoonshotScore

Omada Health Healthcare Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources