Q3 2025 Omada Health Inc Earnings Call

November 6, 2025

After the speaker's presentation, there will be a question answer session to ask a question. During the session you will need to press star one one on your telephone you will then hear an automated message advising your hand is raised to withdraw your question. Please press star one one again please be advised.

Today's conference is being recorded I would now like to hand, the conference over to your speaker today, Alan kills head of Investor Relations for Armada Health. Please go ahead.

Thank you good afternoon, welcome to <unk> third quarter 2025 earnings call. Joining me today are Shawn Duffy co founder and CEO, Alicia <unk>, our president and Steve Cook, Our CFO before we begin I'd like to note that we will be discussing non-GAAP financial measures that we consider helpful any value.

So modest performance you can find details on how these relate to our GAAP measures along with the reconciliations in the press release that is available on our website.

We will also make forward looking statements based on our current expectations and assumptions, which are subject to risks and uncertainties, including factors listed in our press release and in the risk factors found in our filings with the SEC.

Actual results could differ materially and we assume no obligation to update these forward looking statements with that I'll turn the call over to Sean.

Good afternoon, everyone and thank you Allen for the introduction I appreciate all of you for taking the time to join us today.

Let me begin with highlights from our third quarter, which was another strong step forward for monarch total members climbed 53% year over year to 831000 revenue grew 49% year over year to $68 million.

GAAP gross margin reached 66% with non-GAAP at 68% both up sharply from Q3 last year.

Tightened the bottomline, reducing our net loss to $3 million versus $9 million in Q3, 24 and for the first time, we delivered a positive adjusted EBIT quarter with Q3 landing at $2 million compared with a $5 million loss at Q3, a year ago.

These numbers are encouraging but the real story is the impact behind that one of our <unk> members recently told us.

Having struggled with way for most of my life I realize that there is no quick fix DLP. One medicines are helpful. No doubt, but I needed to develop tools and a mindset geared toward my long term success.

<unk> has been very helpful. In getting me thinking about what I can do to better my life now and in the future.

Stories like that remind us why we're here to deliver evidence based care between doctors visits care that weaves together clinical services wraparound support for next generation therapeutics, such as DLP ones and cutting edge AI driven experiences.

Our long term mission at <unk> is simple, but bolt.

Bend the curve for the more than 150 million Americans living with chronic conditions, such as pre diabetes 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.

First innovation remained front and center today, we announced prescribing for anti obesity medications within our <unk> as a planned option for our clients.

We believe it addresses many of today's market needs and positions us to better support the next wave of oral and injectable DLP, one therapies, which we believe will span various price points in the future.

Those therapies evolve several questions employers face chief among them. In addition to lifestyle support how do we help ensure the right remember is on the right medication at the right time.

Our answer Edo monarch combines behavioral intelligence, which our learnings from health metrics readiness and engagement data from serving more than 100000 GOP users.

Behavioral support to drive outcomes, while on the medicines and sustainability will not and flexibility that enables employers to tailor their <unk> benefit strategies against their unique needs.

The customer conversations we've had as we've shaped this offering has been clear many customers want help thoughtfully managing GOP, one spend while preserving clinical value.

They want a partner that can be configurable and flexible as they evolve their benefit strategies year over year and they want a partner who is built for scale.

New capability squarely targets these customer needs.

Beyond product innovation in Q3, we deepened our research.

August marked our 30 peer reviewed publications highlighting significant savings from our joint and muscle Health program. We also published data from our weight health program showing members in the analysis largely maintained weight on average one year after discontinuing GOP one therapy.

Evidence that challenges the narrative of inevitable rebound weight gain.

We're also proud that the business has been scaling efficiently through the first nine months of 2025% revenue is up 51% and membership is up 53% versus the same period last year, while operating expenses rose only 24% and cost of revenue only 31%.

That gap shows our ability to grow on top of strong foundations.

Key drivers of that operating leverage include years of investment in technology clinical research and streamlined operations plus a deliberate multi product approach one sales team currently sells for programs. So clients can work with a single trusted partner instead of managing different point solutions. The result is the leverage for them.

And often loyalty from our customers.

As we look into 2026, we're excited about the path ahead, our annual planning is surface to clear investment teams, making 2026, what I like to call the year of the cheese.

And the first <unk>, we plan to invest in both the prescribing offering announced today as well as other improvements that can deepen our solutions a cross the <unk> lifecycle, the second Jesus Gpt's and broader AI, we plan to keep weaving AI and the many layers of our program, including more tools for members and the care team experience.

As well as leveraging new tools to drive internal productivity amongst our teams.

We believe these investment areas can add value as we seek to widen our competitive moat and fuel sustainable responsible growth.

Lastly, we were honored to welcome Dr. Tom, saying as a modest chief Medical officer, Tom as a physician innovator and seasoned operator more recently, Tom was the CEO and co founder of the Lira health. He also sits on the boards of NCQA and Blue Cross Blue Shield of Kansas City has expertise in clinical quality value based care.

And telehealth perfectly aligns with our next chapter.

In short I believe the stage is set for an exciting moment Edo motto.

Proud of this quarter's results and even more energized by what lies ahead, we have the privilege and the responsibility to dream big on behalf of the more than 150 million Americans living with chronic disease and as we execute we believe that one day, we can truly bend the curve.

With that I'll hand, things over to Wally who will walk through the quarter in more detail.

Thanks, Sean Hello, everyone I'm pleased to share more details on our results and provide an update on our progress against our strategic pillars. Some highlights from Q3 include we ended the quarter with 831000 numbers up 53% compared to Q3 of last year. This includes 79000 net new members.

During the quarter and 259000 year to date, which is more than any full year in our history.

This number growth reflects continued multi condition adoption strong demand for our <unk> offerings and solid execution by our teams during the current selling season, we have seen healthy activity and continued interest in our modest programs, especially our <unk> care track, which we believe can position us well for success in 2020.

Six and beyond this activity includes early sales traction through a large new channel partner that supports our full suite of current offerings in six months, we have already closed multiple planned launches through this channel with new and up sold customers representing an estimated 180000 individuals in closing season.

Isn't over it's also noteworthy that 75% of these customers have chosen to offer multiple home auto programs to their employees underscoring the appeal and value of our integrated multi condition platform.

Now I'd like to share our progress in the areas, we view as our strategic pillars innovation programs that work in our multi condition platform versus point solution approach. These pillars guide, how we innovate engage members and partnered with customers.

Starting with our first pillar innovation, we invest in innovation to enhance the member experience strengthen our competitive position and scale of the impact of our care teams.

Earlier this year, we introduced a modest spark our AI powered agent that interacts directly with numbers alongside our human coaches.

We're pleased with how its been received so far and early observations showed that numbers, who have interacted with the nutrition assistant demonstrated higher levels of ongoing engagement and we're more likely to return to the yamana app compared to those who had not yet used the tool.

We've now built on that foundation with Neil map in AI, driven nutrition experience launched last month.

Youll map combined instant nutrient feedback with personalized guidance from our care teams to help members understand the quality of their food choices not just the calories.

It helps members move beyond restrictive dieting towards sustainable evidenced based habits that promote energy digestive health and cardio metabolic benefits.

Early observations include signs of higher engagement and more consistent mill tracking compared to traditional approaches with positive feedback both from members and clinicians.

Together, a modest spark and Neil map show, how we're using AI to deliver more personalized and actionable educational experiences.

As Sean indicated we also be our incremental investment in <unk> prescribing as an innovative way to address customer needs and potentially widen our moat.

The next era of obesity therapeutics may be defined by continuum of auctions oral and injectable first line and maintenance single and dual agonist and multiple indications, thus, creating more complexity for employers providers and members alike, managing that complexity requires more than just prescribing it demands.

<unk> and support to help ensure people start the right therapy stay on it and transition smoothly as their needs evolve.

Our prescribing offering will be built for that environment with an integrated approach that considers the full journey of a patient from the time a prescription to the everyday moments, we will leverage behavioral intelligence to support prescribing decisions and medication management, helping ensure the right number start stay on or safely.

<unk> therapy.

Scribing will be delivered through an integrated program experience that supports our members across all 50 states.

For more than a decade, Oman has focused on the moments that oftentimes matter. Most the time between doctors visits where real life happens by integrating prescribing with our between visit care model. We aim to close the gap that often exist between a doctor's guidance and our members daily actions and help to ensure that every <unk>.

Part of the care plan continues where it matters most.

Creasing Lee we believe our customers recognize this too many are asking for prescribing not because they need another vendor that can write prescriptions, but because they know what happens after prescribing or modest engagement data driven coaching and human connection is oftentimes where real behavior change happens.

By aligning clinical care and behavior change our approach to prescribing will bring these forces together and aim to deliver lasting metabolic improvement and help bend the curve of chronic disease.

We look forward to sharing more as we approach its planned launch in the first half of next year.

Our second pillar programs that work focuses on programs grounded in clinical evidence and behavior change science that are designed to produce measurable and lasting results. A clear example of this is our <unk> care track, which supports numbers before during and after <unk> therapy in September we release results from a 12 month discontinuation.

<unk> showing that members in the analysis, you've stopped GOP, one medications, but stayed in the amount of program largely maintained their weight one year after <unk> discontinuation participants.

Participants in the analysis experienced a near 0.8% average weight change one year after discontinuation with 63% maintaining or continuing to lose weight during that period that compares to the 11% to 12% average weight gain seen in key clinical trials without ongoing.

Style support.

This analysis was completed as part of the amount of insights lab answers initiative, which examines and shares real world data from a modest behavior change we help programs. These findings highlight the valuable modest human led and digitally enhanced care model.

And demonstrate our ability to deliver outcomes that extend beyond medication use.

We also reached an another important milestone this quarter publishing our 30 peer reviewed manuscript the research analyzed our own model for joint and muscle Health program and found that number is using or modest virtual physical therapy on average have lower medical utilization and costs compared to in person physical therapy, even after accounting.

For program costs in this analysis medium per member per month savings exceeded $100 in the first six months and the total Mfk related savings top $1000 per member at both six and 12 months delivering an approximately $1 eight X.

Why.

This research adds to our growing body of evidence showing that virtual integrated care can drive both clinical and financial value for our customers.

Our third pillar is the power of an integrated multi condition platform. We believe customers increasingly recognize the limitations of point solutions and the advantages of a single scalable partner, we've continued to see growth in multi condition adoption. In addition to the early multi condition success I mentioned with our new large channel partner.

Another. Good example from Q3 was our expansion with a consultant partner through which employers representing approximately 110000 benefit eligible employees will now have the ability to provide those employees with access to a modest four cardio metabolic suite.

This partner expanded from offering only our MSP program to embedding our full cardio metabolic suite into the offering they make available to their clients.

In summary, our performance this quarter reflects the strength of our strategy and our ability to execute and with that I'll turn it over to Steve to discuss the financial results in more detail.

Thank you Billy Hello, everyone today, I'm going to walk through our results and our updated outlook fundamentally amato makes money by demonstrating the value of our solutions to employers health plans and Pbms and other payers, who then pay for a model on behalf of their employees are members.

Operator: At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Allan Kells, Head of Investor Relations for Omada Health. Please go ahead.

In our 30 peer reviewed manuscript the research analyze our motto for joint and muscle Health program and found that number is using a modest virtual physical therapy on average have lower medical utilization and costs compared to in person physical therapy, even after accounting for program costs.

As individuals enrolling our programs, we began charging a monthly membership fee based in part on member engagement. This model can create an enduring revenue stream with good visibility and we saw that reflected in our Q3 performance.

In this analysis medium per member per month savings exceeded $100 in the first six months and the total mfk related savings topped $1000 per member at both six and 12 months delivering an approximately $1 eight X ROI.

As Sean and really mentioned our members grew 53% to end Q3 at 831000.

Allan Kells: Thank you. Good afternoon. Welcome to Omada Health's third quarter 2025 earnings call. Joining me today are Sean Duffy, Co-founder and CEO, Wei-Li Shao, our President, and Steve Cook, our CFO. Before we begin, I'd like to note that we will be discussing non-GAAP financial measures that we consider helpful in evaluating Omada's performance. You can find details on how these relate to our GAAP measures, along with the reconciliations, in the press release that is available on our website. We'll also make forward-looking statements based on our current expectations and assumptions, which are subject to risk and uncertainties, including factors listed in our press release and in the risk factors found in our filings with the SEC. Actual results could differ materially, and we assume no obligation to update these forward-looking statements. With that, I'll turn the call over to Sean.

Revenue in Q3 was $68 million.

This research adds to a growing body of evidence showing that virtual integrated care can drive both clinical and financial value for our customers.

Up 49% year over year.

Primary factors that drove our member and revenue growth include strong adoption of our <unk> programs increased penetration of multi condition customers and increased effectiveness of our marketing campaigns.

Moving to gross profit our Q3 GAAP gross profit was $45 million up 58% compared to Q3 24, and our GAAP gross margin was 66% compared to 63% in Q3 24 Q.

Partner.

Q3, adjusted gross profit was $46 million.

Representing 56% growth year over year.

Adjusted gross margin was 68% an improvement of approximately 300 basis points year over year.

A key driver of our gross margin progress with the efficiency gain through our self built care team platform, which we have continued to enhance by adding capabilities such as in AI <unk> tool designed to help our care team to provide more efficient and effective care.

This partner expanded from offering only our MSA program to embedding our full cardio metabolic suite into the offering they make available to their clients.

Sean Duffy: Good afternoon, everyone, and thank you, Allan, for the introduction. I appreciate all of you for taking the time to join us today. Let me begin with highlights from our third quarter, which was another strong step forward for Omada. Total members climbed 53% year-over-year to 831,000. Revenue grew 49% year-over-year to $68 million. GAAP gross margin reached 66%, with non-GAAP at 68%, both up sharply from Q3 last year. We tightened the bottom line, reducing our net loss to $3 million versus $9 million in Q3 2024. For the first time, we delivered a positive adjusted EBIT quarter, with Q3 landing at $2 million compared with a $5 million loss at Q3 a year ago. These numbers are encouraging, but the real story is the impact behind them. One of our GLP-1 CareTrack members recently told us.

In summary, our performance this quarter reflects the strength of our strategy and our ability to execute and with that I'll turn it over to Steve to discuss the financial results in more detail.

Moving to operating expenses, our GAAP operating expenses were up 28% year over year to $47 million in Q3.

Adjusted operating expenses were $44 million in Q3 up 26% year over year. This growth supported a 49% revenue growth demonstrating strong operating leverage that has been driven by offering multiple conditions on one platform that can be sold by a single sales force scale created through our channel partners and our <unk>.

As individuals enrolling our programs begin charging a monthly membership fee based in part on member engagement. This model can create an enduring revenue stream with good visibility and we saw that reflected in our Q3 performance.

Go to market model and spending discipline as we focus on profitability.

As a result of this leverage we have made good progress towards sustained profitability. Our GAAP net loss in Q3 was $3 million compared to a $9 million loss in Q3, 24, representing net loss margin of negative, 5% and negative 20% respectively.

As Sean and really mentioned our members grew 53% to end Q3 at 831000.

Sean Duffy: Having struggled with weight for most of my life, I realized there is no quick fix. GLP-1 medicines are helpful, no doubt, but I needed to develop tools and a mindset geared toward my long-term success. Omada has been very helpful in getting me thinking about what I can do to better my life now and in the future. Stories like that remind us why we're here: to deliver evidence-based care between doctors' visits, care that weaves together clinical services, wraparound support for next-generation therapeutics such as GLP-1s, and cutting-edge, AI-driven experiences. 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.

Revenue in Q3 was $68 million.

Up 49% year over year.

Our GAAP loss per share in Q3 was six <unk> compared to a loss of $1 18 in Q3 dollars 24.

The primary factors that drove our member and revenue growth include strong adoption of our <unk> programs increased penetration of multi condition customers and increased effectiveness of our marketing campaigns.

Adjusted EBITDA in Q3 was $2 million, which compares to a loss of $5 million in Q3 24, our Q3 adjusted EBITDA margin was 4% compared to negative 11% in Q3 'twenty four.

Moving to gross profit our Q3 GAAP gross profit was $45 million up 58% compared to Q3 24, and our GAAP gross margin was 66% compared to 63% in Q3 'twenty four.

We're very pleased with our narrowing net loss in our first quarter of positive adjusted EBITDA in Q3, which has been achieved through our focus on building a scalable business in a disciplined manner.

Q3, adjusted gross profit was $46 million.

Representing 56% growth year over year.

As Sean discussed we are making investments heading into 2026, while remaining focused on managing spending and continuing our progress towards sustained profitability and our 20% plus long term adjusted EBITDA target.

Adjusted gross margin was 68% an improvement of approximately 300 basis points year over year.

A key driver of our gross margin progress was the efficiency gain through our self built care team platform, which we have continued to enhanced by adding capabilities such as <unk> and AI care team tool designed to help our care teams to provide more efficient and effective care.

We aim to meet an important moment in a dynamic market by investing responsibly in areas such as prescribing additional GOP, one support AI and other product enhancements.

Sean Duffy: During the third quarter, I believe we demonstrated meaningful progress towards this mission. First, innovation remained front and center. Today, we announced prescribing for anti-obesity medications within our GLP-1 CareTrack as a planned option for our clients. We believe it addresses many of today's market needs and positions us to better support the next wave of oral and injectable GLP-1 therapies, which we believe will span various price points in the future. As those therapies evolve, so will questions employers face, chief among them: in addition to lifestyle support, how do we help ensure the right member is on the right medication at the right time?

Potential to widen our moat deepen our differentiation and position us for durable growth in the years ahead.

Moving to operating expenses, our GAAP operating expenses were up 28% year over year to $47 million in Q3.

Moving to our balance sheet, we ended Q3 with cash and cash equivalents of $199 million compared to $223 million in Q2, 'twenty five the decrease was driven by us paying off our $30 million of debt, partially offset our positive cash flow in the quarter.

Adjusted operating expenses were $44 million in Q3 up 26% year over year. This growth supported a 49% revenue growth demonstrating strong operating leverage that has been driven by operating multiple conditions on one platform that can be sold by a single sales force scaled created through our channel partners and our <unk>.

Moving to guidance, we expect 2025 revenue in the range of $251 5 million to $254 5 million up from our prior range of $235 million to $241 million.

Go to market model and spending discipline as we focus on profitability.

Sean Duffy: Our answer at Omada combines behavioral intelligence, which are learnings from health metrics, readiness, and engagement data from serving more than 100,000 GLP-1 users, behavioral support to drive outcomes while on the medicines and sustainability while not, and flexibility that enables employers to tailor their GLP-1 benefit strategies against their unique needs. The customer conversations we've had as we've shaped this offering have been clear. Many customers want help thoughtfully managing GLP-1 spend while preserving clinical value. They want a partner that can be configurable and flexible as they evolve their benefit strategies year over year, and they want a partner who is built for scale. Our new capability squarely targets these customer needs. Beyond product innovation, in Q3, we deepened our research. August marked our 30th peer-reviewed publication, highlighting significant savings from our joint and muscle health program.

The midpoint of this range reflects a 49% growth over 2024.

We expect 2025 adjusted EBITDA in the range of negative $2 million to breakeven up from our prior range of negative $9 million to negative $5 million. The midpoint of this range reflects an improvement of approximately $28 million compared to 2024.

Loss of $1 18 in Q3 'twenty four.

Adjusted EBITDA in Q3 was $2 million, which compares to a loss of $5 million in Q3 24, our Q3 adjusted EBITDA margin was 4% compared to negative 11% in Q3 'twenty four.

In summary, we are pleased with our Q3 performance, which demonstrated continued momentum in our business and the scalability of our model with that we'll now open the call for questions.

Thank you as a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced towards draw. Your question. Please press star one one again, we ask you. Please limit yourselves to one question and one <unk>.

Follow up to allow everyone the opportunity to participate.

Our first question comes from the line of Lisa Gill from Jpmorgan.

Sean Duffy: We also published data from our weight health program, showing members in the analysis largely maintained weight on average one year after discontinuing GLP-1 therapy, evidence that challenges the narrative of inevitable rebound weight gain. We're also proud that the business has been scaling efficiently. Through the first nine months of 2025, revenue is up 51% and membership is up 53% versus the same period last year, while operating expenses rose only 24% and cost of revenue only 31%. That gap shows our ability to grow on top of strong foundations. Key drivers of that operating leverage include years of investment in technology, clinical research, and streamlined operations, plus a deliberate multi-product approach. One sales team currently sells four programs, so clients can work with a single trusted partner instead of managing different point solutions. The result is leverage for Omada and often loyalty from our customers.

We aim to meet an important moment in a dynamic market by investing responsibly in areas such as prescribing additional GOP one support.

Thanks, very much good afternoon, and congrats on the great results.

And other product enhancements that are potential to widen our moat deepened our differentiation and position us for durable growth in the years ahead.

Can you spend a few minutes just talking about prescribing <unk>.

One.

The salmon price.

Or will you actually be fulfilling the drug will it be there'll be bringing a coupon or a prescription to the pharmacy.

If you can talk about this new initiative that you have today and.

How that will play out thank you.

Certainly Lisa this is Sean. Thank you for the question good to hear your voice.

Moving to guidance, we expect 2025 revenue in the range of $251 5 million to $254 5 million.

For sure. We're very excited about this we view it as a next evolution of our GOP wound care track. So let me just describe a little bit more on the why.

Up from our prior range of $235 million to $241 million.

Behind prescribing and we can now answer some of the tactical details you highlighted here.

The midpoint of this range reflects a 49% growth over 2024.

First and foremost anytime we do something new to motto, we listened to customers.

Listen to members.

And at the customer level, they're seeing what we're seeing and what we highlighted in the opening remarks, which is a new era of obesity therapeutics different medicines different form factors different price points.

Sean Duffy: As we look into 2026, we're excited about the path ahead. Our annual planning has surfaced two clear investment themes, making 2026 what I like to call the year of the Gs. The first G is GLP-1s. We plan to invest in both the prescribing offering announced today, as well as other improvements that can deepen our solutions across the GLP-1 lifecycle. The second G is GPTs, and broader AI. We plan to keep weaving AI into many layers of our program, including more tools for members, and the care team experience, as well as leveraging these tools to drive internal productivity amongst our teams. We believe these investment areas can add value as we seek to widen our competitive moat, and fuel sustainable, responsible growth. Lastly, we were honored to welcome Dr. Tom Sang as Omada's Chief Medical Officer. Tom is a physician, innovator, and seasoned operator.

And this creates a new need to support our clients and our members with the managing the complexity of medication optimization alongside the lifestyle support that they know a modest to be great at.

In summary, we are pleased with our Q3 performance, which demonstrated continued momentum in our business and the scalability of our model.

We'll now open the call for questions.

We think this creates a new world, where our monarch conserve to support the right <unk> for the right person to deliver additional client.

Thank you as a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced towards draw. Your question. Please press star one one again.

Member value and Thats really germane to the mission to bend the curve.

Specific to some of the tactics.

We ask you please limit yourself to one question and one follow up to allow everyone the opportunity to participate.

This will be an integrated experience within the amount of care program, but these will not be compounded meds.

Branded meds fulfilled by the pharmacy of the members' choice and it'll be an enterprise model working specifically with with clients and plans and I don't know if you have anything to comment on tops, yes, Sean just to add on top of that I believe Lisa you also asked a question about pricing in there too as well as we just only announced the capability today.

Our first question comes from the line of Lisa Gill from Jpmorgan.

Thanks, very much good afternoon, and congrats on the great results.

Sean Duffy: More recently, Tom was the CEO and co-founder of Valera Health. He also sits on the boards of NCQA and Blue Cross Blue Shield of Kansas City. His expertise in clinical quality, value-based care, and telehealth perfectly aligns with our next chapter. In short, I believe the stage is set for an exciting moment at Omada. We're proud of this quarter's results, and even more energized by what lies ahead. We have the privilege and the responsibility to dream big on behalf of the more than 150 million Americans living with chronic disease. As we execute, we believe that one day we can truly bend the curve. With that, I'll hand things over to Wei-Li, who will walk through the quarter in more detail.

You spend a few minutes just talking about prescribing of GMP one around one four.

Selman price.

There is nothing to share regarding pricing, but what I can say about that.

Or will you actually be fulfilling the drug will it be there'll be bringing a coupon or a prescription to the pharmacy.

Is that it will be incremental pricing on top of our monthly chronic condition management fee.

If you can talk about this new initiative that you have today and.

The strategic intent of course is to make this pricing not only accretive on the top line for revenue, but also accretive to margin as well.

How that will play out thank you.

Yes, certainly Lisa this is Sean. Thank you for the question good to hear your voice.

Okay.

For sure. We're very excited about this we view it as a next evolution of our GOP wound care track. So let me just describe a little bit more on the why.

Follow up there I mean, we saw from making an announcement on Trump.

Talking about <unk> and roughly about $149 range should we be thinking that youre going to have the opportunity to offer these at a pretty substantial discount.

Brian prescribing and we can now answer some of the tactical details you highlighted here.

First and foremost anytime we do something new to moderate we listened to customers.

Wei-Li Shao: Thanks, Sean. Hello, everyone. I'm pleased to share more details on our results and provide an update on our progress against our strategic pillars. Some highlights from Q3 include: we ended the quarter with 831,000 members, up 53% compared to Q3 of last year. This includes 79,000 net new members during the quarter and 259,000 year-to-date, which is more than any full year in our history. This number of growth reflects continued multi-condition adoption, strong demand for our GLP-1 offerings, and solid execution by our teams. During the current selling season, we have seen healthy activity and continued interest in Omada's programs, especially our GLP-1 CareTrack, which we believe can position us well for success in 2026 and beyond. This activity includes early sales traction through a large new channel partner that supports our full suite of current offerings.

Look on the announcement.

Listen to members.

And at the customer level, they're seeing what we're seeing and what we highlighted in the opening remarks, which is a new era of it.

Please today's.

<unk> is really a neat moment and perhaps a transformational moment for the field of obesity and.

<unk> therapeutics different medicines different form factors different price points.

It's almost a serendipitous that occurred on the day that we launched a prescribing solution.

And this creates a new need to support our clients and our members with managing the complexity of medication optimization alongside the lifestyle support that they know a modest to be great at.

Because of the shared.

<unk> been looking toward a world with different methods different price points, perhaps even different price points at different doses with different indications.

That world creates a lot of complexity for buyers that world creates an opportunity to simplify that for buyers of members and so.

So we think this creates a new world, where our monarch conserve to support the right GOP for the right person to deliver additional client.

That's germane to the to the news, we announced today and we're thrilled by it I mean at the end of the day lower priced prices enables broadened access and we think that's a great thing for the world and are really heartened with we're seeing that news.

And member value and Thats really germane.

The mission to bend the curve.

Specific to some of the tactics.

This will be an integrated experience within the amount of care program, but these will not be compounded meds.

Great. Thank you so much.

Dolby branded meds fulfilled by the pharmacy of the members' choice and it'll be an enterprise model working specifically with with clients and plans and I don't know if you have anything to comment on top yes, Sean.

Lisa Thanks, So maybe I'll just add onto that a little bit just because all this news of course is just fresh off the page.

Wei-Li Shao: In six months, we have already closed multiple planned launches through this channel with new and upsold customers representing an estimated 180,000 individuals, and closing season isn't yet over. It's also noteworthy that 75% of these customers have chosen to offer multiple Omada programs to their employees, underscoring the appeal and value of our integrated, multi-condition platform. Now I'd like to share our progress in the areas we view as our strategic pillars: innovation, programs that work, and our multi-condition platform versus point solution approach. These pillars guide how we innovate, engage members, and partner with customers. Starting with our first pillar, innovation, we invest in innovation to enhance the member experience, strengthen our competitive position, and scale the impact of our care teams. Earlier this year, we introduced Omada Spark, our AI-powered agent that interacts directly with members alongside our human coaches.

And as it relates to what will we be able to direct patients towards this price. It always has been as we've been over the last year talking to customers and developing our prescribing plus behavior change lifestyle intervention program, which we again announced today always has been the intent that we would help.

John just to add on top of that I believe Lisa you also asked a question about pricing in there too as well as we just only announced the capability today.

There is.

Nothing to share regarding pricing, but what I can say about that.

Is that it will be incremental pricing on top of our monthly chronic condition management fee.

<unk> for our what we call members.

Find the best price.

The strategic intent of course is to make this pricing not only accretive on the top line for revenue, but also accretive to margin as well.

Because we know access and affordability is important but again all of this information is fresh off the newswire and so we're going to have to see exactly how the price follows through for Medicare fee for service over to Medicare advantage over to the commercial segment.

Just as a quick follow up there I mean, let me start from making an announcement on Trump Rx talking about <unk> and roughly about $149 range should we be thinking that youre going to have the opportunity to offer these at a pretty substantial discount.

That's typically the flow, but we'll have to see if indeed, it pans out that way and we feel incredibly fortunate that we.

Our poised in this position.

To be able to leverage what we think could be a transformative moment and obesity care.

Look on the announcement.

Wei-Li Shao: We are pleased with how it's been received so far, and early observations showed that members who interacted with the nutrition assistant demonstrated higher levels of ongoing engagement and were more likely to return to the Omada app compared to those who had not yet used the tool. We've now built on that foundation with Meal Map, an AI-driven nutrition experience launched last month. Meal Map combines instant nutrient feedback with personalized guidance from our care teams to help members understand the quality of their food choices, not just the calories. It helps members move beyond restrictive dieting towards sustainable, evidence-based habits that promote energy, digestive health, and cardiometabolic benefits. Early observations include signs of higher engagement and more consistent meal tracking compared to traditional approaches, with positive feedback both from members and clinicians.

Believe that today's.

Great. Thank you.

<unk> is really a neat moment and perhaps a transformational moment for the field of obesity and it's it's almost a serendipitous that occurred on the day that we launched a prescribing solution.

Thank you one moment for our next question.

Our next question comes from the line of Craig hadn't back from Morgan Stanley.

Thank you just following up on that and understand aesthetic to be accretive to revenue and margin can you just talk even high level about just kind of investments that maybe you need to make to kind of get this off the ground and how you think about that implications for 2026.

Because it's shared.

We've been looking toward a world with different <unk> different price points, perhaps even different price points at different doses with different indications.

That world creates a lot of complexity for buyers that world creates an opportunity to simplify that for buyers and members and so.

Hey, Craig this is Steve and Youre absolutely. Thank you for the question.

That's germane to the to the news, we announced today and we're thrilled by it I mean at the end of the day lower priced prices enables broadened access and.

We're not talking through specific numbers at this point, we're just at the tail end of or the end of our 2026th annual planning process. Obviously to stand this up it's going to require some investment, namely across our engineering and our product organization as well as our sales and marketing teams. So as we think through the go forward here, we're going to plan to provide more specific guidance.

We think that's a great thing for the World and are really heartened with we're seeing that news.

Great. Thank you so much.

Lisa Thanks, maybe I'll just add on to that a little bit just because all this news of course is just fresh off the page.

Wei-Li Shao: Together, Omada Spark and Meal Map show how we're using AI to deliver more personalized and actionable educational experiences. As Sean indicated, we also view our incremental investment in GLP-1 prescribing as an innovative way to address customer needs and potentially widen our moat. The next era of obesity therapeutics may be defined by a continuum of options: oral and injectable, first-line and maintenance, single and dual agonist, and multiple indications, thus creating more complexity for employers, providers, and members alike. Managing that complexity requires more than just prescribing. It demands coordination and support to help ensure people start the right therapy, stay on it, and transition smoothly as their needs evolve. Our prescribing offering will be built for that environment, with an integrated approach that considers the full journey of a patient from the time of prescription to the everyday moments.

Once we get into the March call.

I'll just stand up this functionality, but this has been on the.

Backups, our health plan customers or PVM customers, asking us to stand up this functionality. So we do realize that is going to be an investment that we're going to make in 2026.

Got it and then just separately a question on the selling season last year, I think 50% of new customers started with <unk>.

<unk>, where are what we call numbers.

Find the best price.

Because we know access and affordability is important but again all of this information is fresh off the newswire and so we're going to have to see exactly how the price follows through from Medicare fee for service over to Medicare advantage over to the commercial segment.

Two conditions or more just trying to get a sense in terms of is that still the trend in terms of this year and anything that's standing out one year to the next in terms of what's really resonating most with customers this year.

That's typically the flow, but we'll have to see if indeed, it pans out that way and we feel incredibly fortunate that we.

Hey, Greg This is Wei Lee Thanks for the question regarding the multi product penetration you are correct. You are correct. We've said historically that.

Our poised in this position to be able to leverage what we think could be a transformative moment and obesity care.

We've seen quarters, where it closed deals for new business and upsell have far exceeded 50%. We continue to press on that as you might imagine and we continue to make progress on it.

Great. Thank you.

Wei-Li Shao: We will leverage behavioral intelligence to support prescribing decisions and medication management, helping ensure the right member starts, stays on, or safely discontinues therapy. Prescribing will be delivered through an integrated program experience that supports our members across all 50 states. For more than a decade, Omada has focused on the moments that often matter most: the time between doctors' visits, where real life happens. By integrating prescribing with our between-visit care model, we aim to close the gap that often exists between a doctor's guidance and a member's daily actions, and help to ensure that every part of the care plan continues where it matters most. Increasingly, we believe our customers recognize this too. Many are asking for prescribing not because they need another vendor that can write prescriptions, but because they know what happens after prescribing.

Thank you one moment for our next question.

Our next question comes from the line of Craig Hatton back from Morgan Stanley.

The results in the selling season, so far I mean, we're a little more than halfway through but if you look at Q3, we're pleased with the progress that we continue to make traction against our multi multi product sales and.

Thank you just following up on that and understanding you said it to be accretive to revenue and margin can you just talk even high level about just kind of investments that maybe you need to make to kind of get this off the ground and how you think about that implications for 2026.

And maybe I'll comment too a little bit on the pipeline. Some of you probably are wondering about that too as well.

In Q3.

We're seeing double digit volume deal growth Q3, Q3 last year.

Hey, Craig this is Steve and Youre absolutely. Thank you for the question.

So we like what we see but of course, the selling season is not over yet and our sales teams you can bet, our busy closing out the year strong as possible.

Great. Thank you.

Thank you one moment for our next question.

Our next question comes from the line of Richard close from Canaccord Genuity.

Go forward here, we're going to plan to provide more specific guidance once we get into the March call and to be able to stand up this functionality, but this has been on the back of our health plan customers or PVM customers asking us to stand up this functionality. So we do realize that it is going to be an investment that we're going to make in 2026.

Yes, a couple of questions here.

First congratulations on the strong results.

Wei-Li Shao: Omada's engagement, data-driven coaching, and human connection is often where real behavior change happens. By aligning clinical care and behavior change, our approach to prescribing will bring these forces together, aim to deliver lasting metabolic improvement, and help bend the curve of chronic disease. We look forward to sharing more as we approach its planned launch in the first half of next year. Our second pillar, programs that work, focuses on programs grounded in clinical evidence and behavior change science that are designed to produce measurable and lasting results. A clear example of this is our GLP-1 CareTrack, which supports members before, during, and after GLP-1 therapy. In September, we released results from a 12-month discontinuation analysis showing that members in the analysis who stopped GLP-1 medications but stayed in the Omada program largely maintained their weight one year after GLP-1 discontinuation.

Maybe a follow up on the <unk>, one and <unk> and <unk>.

Maybe Steve how youre thinking about those investments.

Should we assume.

You are able to with some of the AI initiatives and whatnot.

Got it and then just separately a question on the selling season.

Last year, I think 50% of new customers started with.

Keep gross margins in the Sip code of 68%.

Two conditions or more.

Even with rolling out this new offering.

Just trying to get a sense in terms of is that still the trend in terms of this year and anything outstanding out one year to the next in terms of what's really resonating most.

Scribing.

Yes, absolutely Richard Thank you for the question as we've committed to our goal in the future is to get to 70% annualized gross margins.

With customers this year.

Yeah, Hey, Greg This is Wei Lee Thanks for the question regarding the multi product penetration you are correct. You are correct. We've said historically that.

A lot of the investment that we intend to complete next year is actually going to hit in operating expenses across sales and marketing and R&D and on that front, we remain committed to hitting a 20% plus EBITDA margin, which we're going to stair step into over the coming years, We do view 2026 as a key investment year for US again, we're feeling a tremendous amount of demand to stay.

We've seen quarters, where it closed deals for new business and upsell have far exceeded 50%. We continue to press on that as you might imagine and we continued to make progress on it.

Wei-Li Shao: Participants in the analysis experienced a mere 0.8% average weight change one year after discontinuation, with 63% maintaining or continuing to lose weight during that period. That compares to the 11% to 12% average weight gain seen in key clinical trials without ongoing lifestyle support. This analysis was completed as part of the Omada Insights Lab Answers Initiative, which examines and shares real-world data from Omada's behavior change weight health programs. These findings highlight the value of Omada's human-led, digitally enhanced care model, and demonstrate our ability to deliver outcomes that extend beyond medication use. We also reached another important milestone this quarter: publishing our 30th peer-reviewed manuscript. The research analyzed our Omada for Joint and Muscle Health program and found that members using Omada's virtual physical therapy on average had lower medical utilization and costs compared to in-person physical therapy, even after accounting for program costs.

End up just prescribing ability to stand up additional functionality within our <unk> offering as well as per your comments continuing to invest in AI, which not only has the ability for our care teams to become more efficient, but also drive additional <unk> and revenue as it has the ability to enhance product personalization and keep our members and program longer.

And maybe I'll comment a little bit on the pipeline. Some of you probably are wondering about that too as well.

In Q3.

We're seeing double digit volume deal growth Q3, Q3 last year.

Term.

Okay. That's helpful. And then just on the recent large partnership.

So we like what we see but of course of the selling season is not over yet and our sales teams you can bet, our busy closing out the year strong as possible.

Cvs launch.

Those clients that you had talked about are those launching January 1st and then the consulting with that that arrangement launch January 1st as well.

Great. Thank you.

Thank you one moment for our next question.

Our next question comes from the line of Richard close from Canaccord Genuity.

Yes, Hi, Richard.

Yes couple of questions here.

This is Wally.

First congratulations on the strong results.

Want to comment specifically to the performance with Cvs we.

Just maybe a follow up on the GOP, one in <unk> and <unk>.

We have built pipeline, we have closed deals.

And.

Maybe Steve how youre thinking about those investments.

Yes, because it's a closing season.

As with the deals that we closed this year, including ones that we may be closing with Cvs.

Should we assume.

Wei-Li Shao: In this analysis, median per member per month savings exceeded $100 in the first six months, and the total MSK-related savings topped $1,000 per member at both 6 and 12 months, delivering an approximately 1.8x ROI. This research adds to our growing body of evidence showing that virtual integrated care can drive both clinical and financial value for our customers. Our third pillar is the power of an integrated multi-condition platform. We believe customers increasingly recognize the limitations of point solutions, and the advantages of a single, scalable partner. We continue to see growth in multi-condition adoption. In addition to the early multi-condition success I mentioned with our new large channel partner, another good example from Q3 was our expansion with a consultant partner, through which employers representing approximately 110,000 benefit-eligible employees will now have the ability to provide those employees with access to Omada's full cardiometabolic suite.

You are able to with some of the AI initiatives and whatnot.

Can expect that most of them the overwhelming dominant majority of them will be launching in.

Keep gross margins in the Sip code of 68%.

In the January timeframe timeframe, consistent with what normally happens there.

Even with rolling out this new offering.

Scribing.

Okay. Thank you.

Yes, absolutely Richard Thank you for the question as we've committed to our goal in the future is to get to 70% annualized gross margins.

Thank you one moment for our next question.

Our next question comes from the line of Elizabeth Anderson from Evercore ISI.

And a lot of the investment that we intend to complete next year is actually going to hit in operating expenses across sales and marketing and R&D and on that front, we remain committed to hitting a 20% plus EBITDA margin, which we're going to stair step into over the coming years, We do view 2026 as a key investment year for US again, we're feeling a tremendous amount of demand.

Hi, guys congrats on the quarter and thanks, so much for the question.

I was just wondering maybe piggybacking on the back of that one a little bit.

Let's say you are talking about these investments and that makes a ton of sense in terms of the opportunities available to you.

Can you remind us sort of if we think about the typical seasonality does that change with any of these new initiatives that you're.

To stand up this prescribing ability to stand up additional functionality within our <unk> offering as well as per your comments continuing to invest in AI, which not only has the ability for our care teams to become more efficient, but also drive additional <unk> and revenue as it has the ability to enhance product personalization and keep our members and program.

<unk> been talking about it launched and are planning to launch because as I'm thinking about it if I kind of flow through some of the margin outperformance year to date with some of the typical seasonality I can get sort of well above your guidance range. So I just wanted to make sure I have that down.

Wei-Li Shao: This partner expanded from offering only our MSK program to embedding our full cardiometabolic suite into the offering they make available to their clients. In summary, our performance this quarter reflects the strength of our strategy, and our ability to execute. With that, I'll turn it over to Steve to discuss the financial results in more detail.

Longer term.

Okay. That's helpful. And then just on the recent large partnership or Cvs lunch.

Correctly.

Yes, Hi, Elizabeth good to hear from you. This is Wally regarding some of the new investments in the announcements specifically for instance around prescribing and how we're going to integrate that with our <unk> care track.

Those clients that you had talked about are those launching January 1st and then the consulting with that.

Steve Cook: Thank you, Wei-Li. Hello, everyone. Today, I'm going to walk through our results and our updated outlook. Fundamentally, Omada makes money by demonstrating the value of our solutions to employers, health plans, PBMs, and other payers, who then pay for Omada on behalf of their employees or members. As individuals enroll in our programs, we begin charging a monthly membership fee based in part on member engagement. This model can create an enduring revenue stream with good visibility, and we saw that reflected in our Q3 performance. As Sean and Wei-Li mentioned, our members grew 53% to end Q3 at 831,000. Revenue in Q3 was $68 million, up 49% year-over-year. The primary factors that drove our member and revenue growth include strong adoption of our GLP-1 programs, increased penetration of multi-condition customers, and increased effectiveness of our marketing campaigns.

That arrangement launch January 1st as well.

Regarding the typical seasonality on selling of course again, we've only just announced it will begin commence selling.

Yes, Hi, Richard This is this is Wally I won't comment specifically to the performance.

And the early part of next year.

And we anticipate that like any other new offering that is as significant potentially is this one it will follow the normal selling cycle.

Cvs.

We have built pipeline, we have closed deals.

And.

Yes, because it's a closing season.

And so that selling cycle in the enterprise World <unk> World could could be anywhere from six months 12 months 18 months, depending upon the client.

As with the deals will be closed this year, including one that we may be closing with Cvs.

Can expect that most of them the overwhelming dominant majority of them will be launching in.

So you would expect that.

As we do that we'll follow that normal selling cycle and so.

In the January timeframe timeframe, consistent with what normally happens there.

Unlikely would be immediate sales because we've got to move through that motion.

Okay. Thank you.

Thank you one moment for our next question.

But if I would just add in terms of specifically on your guidance question seasonality. Historically speaking Q4 is a little bit slower as we get towards the holidays.

Our next question comes from the line of Elizabeth Anderson from Evercore ISI.

Hi, guys congrats on the quarter and thanks, so much for the question.

While revenues sequentially, increasing up from 68% to $69 million on an implied level, that's mostly due to just going into that back half.

I was just wondering maybe piggybacking on the back of that one a little bit.

Steve Cook: Moving to gross profit, our Q3 GAAP gross profit was $45 million, up 58% compared to Q3 2024, and our GAAP gross margin was 66% compared to 63% in Q3 2024. Q3 adjusted gross profit was $46 million, representing 56% growth year-over-year. Adjusted gross margin was 68%, an improvement of approximately 300 basis points year-over-year. 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 teams provide more efficient and effective care. Moving to operating expenses, our GAAP operating expenses were up 28% year-over-year to $47 million in Q3. Adjusted operating expenses were $44 million in Q3, up 26% year-over-year.

I'd say youre talking about these investments and that makes ton of sense in terms of the opportunities available to you.

Into Q4 and getting into the holiday season, we're going to spend the rest of that Q4 really building a pipeline and make sure that we hit 2026 strong out of the gate.

Can you remind us sort of if we think about the typical seasonality does that change with any of these new initiatives that you're.

Perfect Thats very helpful. Thank you.

Thank you one moment for our next question.

Our next question comes from the line of socket Calia from Barclays.

Okay, Great Hey, guys. Thanks for taking my questions here and congrats on these results.

Yes.

Shawn and really maybe maybe for you folks.

Correctly.

Specifically on coming back to sort of the <unk> mechanics.

Maybe the question is is this really geared towards existing subscribers of your lifecycle management tools or is this something thats really meant to pull through new subscribers of those tools. So certainly understand that the economics for the new offering is still very much TBD, but im kind of curious what the strategy was with sort of the <unk>.

Regarding the typical seasonality on selling of course again, we've only just announced it will begin commence selling.

Steve Cook: This growth supported 49% revenue growth, demonstrating strong operating leverage that has been driven by operating multiple conditions on one platform that can be sold by a single sales force, scale created through our channel partners in our B2B to C go-to-market model, and spending discipline as we focus on profitability. As a result of this leverage, we have made good progress towards sustained profitability. Our GAAP net loss in Q3 was $3 million compared to a $9 million loss in Q3 2024, representing net loss margins of negative 5% and negative 20%, respectively. Our GAAP loss per share in Q3 was $0.06 compared to a loss of $1.18 in Q3 2024. Adjusted EBITDA in Q3 was $2 million, which compares to a loss of $5 million in Q3 2024. Our Q3 adjusted EBITDA margin was 4% compared to negative 11% in Q3 2024.

And the early part of next year.

Core business.

And we anticipate that like any other new offering that is as significant potentially is this one it'll follow the normal selling cycle.

Yes for sure. So I think you so much for the question. This is Sean here.

<unk> will be a new capability that can be turned on and of course offered to existing clients.

And so that selling cycle in the enterprise World BTB World could could be anywhere from six months 12 months 18 months, depending upon the client.

So clients that offer current GOP wound care truck solutions. Obviously this is something we're going to discuss with them.

The value prop that we just described to simplify.

So you would expect that.

As we do that we'll follow that normal selling cycle and so.

They are their members their employees experience that equally it's something that we'll work to bring forward to net new clients as well. So it's it's got to be a combination.

There.

Unlikely would be immediate sales because we've got to move through that motion.

Equally I commented in my opening remarks on the importance of configure ability and I just wanted to punctuate that.

But if I would just add in terms of specifically on your guidance question seasonality. Historically speaking Q4 is a little bit slower.

What you find in the employer landscape relative decisions around paying for or not paying for <unk> ones is a lot of diversity.

Towards the holidays, so while revenues sequentially, increasing up from $68 million to $69 million on an implied level, that's mostly due to just going into that back half into Q4 and getting into the holiday season. So we're going to spend the rest of that Q4 really building a pipeline and make sure that we had 2026 strong out of the gate.

<unk> benefit strategies, you have various calls.

We think enabling a lot of flexibility for these clients becomes a strategic differentiator.

Steve Cook: We are very pleased with our narrowing net loss and our first quarter of positive adjusted EBITDA in Q3, which has been achieved through our focus on building a scalable business in a disciplined manner. As Sean discussed, we are making investments heading into 2026 while remaining focused on managing spending, and continuing our progress towards sustained profitability and our 20% plus long-term adjusted EBITDA target. We aim to meet an important moment in a dynamic market by investing responsibly in areas such as prescribing, additional GLP-1 support, AI, and other product enhancements that have potential to widen our moat, deepen our differentiation, and position us for durable growth in the years ahead. Moving to our balance sheet, we ended Q3 with cash and cash equivalents of $199 million compared to $223 million in Q2 2025.

If you want to support our motto without prescribing you want to add prescribing.

Perfect Thats very helpful. Thank you.

We have flexibility there.

Number of permutations within so we're excited to really really.

Thank you one moment for our next question.

This unique moment, where there is a lot of dynamism at the client level relative to the discussions and strategies and we expect it to continue to change and to have flexible capabilities alongside that.

Our next question comes from the line of socket Calia from Barclays.

Okay, Great Hey, guys. Thanks for taking my questions here and congrats on these results.

We feel really meets the needs of today.

Shawn and really maybe maybe for you folks.

Got it got it that makes sense, maybe for my follow up for you Steve.

Specifically on going back to sort of the <unk> mechanics.

It was another quarter of accelerating member growth year over year.

Maybe maybe the question is is this really geared towards existing subscribers of your lifecycle management tools or is this something thats really meant to pull through new subscribers of those tools. So certainly understand that the economics for the new offering is still very much TBD, but im kind of curious what the strategy was with sort of the.

Maybe it's tough to break out but if you can can you just talk about sort of how that member growth looks like for the <unk> care track versus versus your other offerings and maybe Relatedly I mean, I think we I think going back to the IPO, what kind of all assume sort of a very consistent engagement rate, maybe just to mark to mark that Hasnt engagement re changed at all given all the new offerings.

Steve Cook: The decrease was driven by us paying off our $30 million of debt, partially offset by our positive cash flow in the quarter. Moving to guidance, we expect 2025 revenue in the range of $251.5 million to $254.5 million, up from a prior range of $235 million to $241 million. The midpoint of this range reflects 49% growth over 2024. We expect 2025 adjusted EBITDA in the range of negative $2 million to break even, up from a prior range of negative $9 million to negative $5 million. The midpoint of this range reflects an improvement of approximately $28 million compared to 2024. In summary, we are pleased with our Q3 performance, which demonstrated continued momentum in our business and the scalability of our model. With that, we'll now open the call for questions.

Core business, yes.

Yes for sure. So I. Thank you so much for the question. This is Sean here.

Is that you have.

This is Willie let me take that one as it relates to kind of demand volume across the multi condition platform.

<unk> will be a new capability that can be turned on and of course offered to existing clients.

So clients.

That offer current GOP wound care Tech solutions. Obviously this is something we're going to discuss with them.

Certainly GOP ones in terms of our <unk> has been a tailwind in our growth we have seen significant growth year over year with that so that is part of the growth story in.

Against the value prop that we just described to simplify.

Their members their employees experience that equally it's something that we'll work to bring forward to net new clients as well. So it is it's got to be a combination.

In Q3.

But it is equally important if not more important to say that we have experienced.

Significant growth across the entire multi condition platform.

Equally I commented in my opening remarks on the importance of configure ability and I just wanted to punctuate that.

As folks May recall, we think that's going to that's been driven by a couple of things. The first one of which is that we've always said strategically our approach to the marketplace with <unk>.

What you find in the employer landscape relative to decisions around paying for or not paying for <unk> ones is a lot of diversity.

Given <unk> is a gateway to the broader cardio metabolic conversation is that the discussion around <unk> is a tide that will lift all ships, meaning that it opens up the door to also up sell or sell to new logos.

You have various benefit strategies you have various calls.

We think enabling a lot of flexibility for these clients becomes a strategic differentiator. So if you want to support our motto without prescribing you want to add prescribing.

Operator: Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. We ask that you please limit yourselves to one question and one follow-up to allow everyone the opportunity to participate. Our first question comes from the line of Lisa Gill from JP Morgan.

The rest of our cardio metabolic programs and diabetes prevention weight health hypertension, and diabetes management and we're seeing that happen. The second one is we've been committed to a multi condition multi product platform sales approach now for years.

We have flexibility there.

And a number of permutations within so we're excited to really really meet.

Meet this unique moment, where there is a lot of dynamism at the client level relative to the discussions and strategies and we expect it to continue to change and to have flexible capabilities alongside that.

We've noted in previous disclosures the progress we've made against that strategy last year.

We feel really meets the needs of today.

Seeing is is that that's selling all of that multi product penetration that we achieved last year through the selling season is really pulling for pulling through into 2020.

Lisa Gill: Thanks very much. Good afternoon, and congrats on the great results. Can you spend a few minutes just talking about prescribing of GLP-1 around the fulfillment price? Will you actually be fulfilling the drug? Will it be they'll be bringing a coupon or the prescription to the pharmacy? If you can talk about this new initiative that you have today and how that'll play out. Thank you.

Got it got it that makes sense, maybe for my follow up for you Steve.

Another quarter of accelerating member growth year over year.

And maybe it's tough to break out but if you can can you just talked about sort of how that member growth looks like for the GOP care track versus versus your other offerings and maybe Relatedly I mean, I think we I think going back to the IPO, what kind of all assumes sort of a very consistent engagement rate, maybe just to mark to mark that Hasnt engagement re changed at all given all the new offer.

Five this year.

And we're seeing that materialize in.

Healthy growth and performance that we've seen in Q3 now as it relates to engagement patterns and how that's changed we've always said historically that.

We've got 55%.

Steve Cook: Yeah, certainly, Lisa. This is Sean. Thank you for the question. Good to hear your voice. Let me just first share, we're very excited about this. We view it as a next evolution of our GLP-1 CareTrack. Let me just describe a little bit more on the why behind prescribing, and we can answer some of the tactical details you highlighted here. First and foremost, anytime we do something new at Omada, we listen to customers, we listen to members. At the customer level, they're seeing what we're seeing and what we highlighted in the opening remarks, which is a new era of obesity therapeutics, different medicines, different form factors, different price points. This creates a new need to support our clients and our members with managing the complexity of medication optimization alongside the lifestyle support that they know Omada to be great at.

Engagement still at the end of year, one and then if you make it to year, one you're highly likely just stay engaged with us at year $2, 50% are still engaged at year two.

I know that you have.

This is Willie let me take that one as it relates to kind of demand volume across the multi condition platform certainly GOP ones in terms of our <unk> has been a tailwind in our growth we have seen significant growth year over year with that so that is part of the growth story in.

And we're seeing that that trend continue.

And we're quite pleased with that progress. So hopefully that answers your question and backs into a little bit of kind of what explains the accelerated growth in Q3.

In Q3.

But it's equally important if not more important to say that we have experienced.

It does super helpful. Thank you.

Significant growth across the entire multi condition platform.

Okay.

Thank you one moment for our next question.

As folks May recall, we think that's going to that's been driven by a couple of things. The first one of which is that we've always said strategically our approach to the marketplace with <unk>.

Our next question comes from the line of Ryan Macdonald from Needham and company.

Hi, Thanks for taking my questions and congrats on a great quarter and maybe this one's for Wally.

Given <unk> ones as a gateway to the broader cardio metabolic conversation is that the discussion around GOP ones is a tide that will lift all ships, meaning that it opens up the door to also up sell or sell to new logos.

Completely understand.

Steve Cook: We think this creates a new world where Omada can serve to support the right GLP for the right person to deliver additional client and member value. That's really germane to the mission to bend the curve. Specific to some of the tactics, as shared, this will be an integrated experience within the Omada Care program. These will not be compounded meds. They'll be branded meds fulfilled by the pharmacy of the member's choice. It'll be an enterprise model working specifically with clients and plans. I don't know if Wei-Li, you have anything to comment on top.

And it's great to see sort of the demand across multiple conditions, but I guess during the current selling season I'm curious.

We're hearing a lot of conversations around basically DLP, one sort of starting a lot of conversations and sort of enabling sort of broader multi condition conversations, but I guess, that's a starting point are you seeing more demand or are more of the conversations focused on using our model as a GOP one companion.

The rest of our cardio metabolic programs and diabetes prevention weight health hypertension, and diabetes management, and we're seeing that happen.

Second one is we've been committed to a multi condition multi product platform sales approach now for years.

We've noted in previous disclosures the progress we've made against that strategy last year.

Solution or perhaps an alternative solution to covering <unk> amongst your client base.

Seeing is that that selling or that multi product penetration that we achieved last year due to the selling season is really pulling for pulling through into 2020.

Wei-Li Shao: Yeah, Sean, just to add on top of that, I believe Lisa, you also asked a question about pricing in there too as well. As we've just only announced the capability today, there's nothing to share regarding pricing. What I can say about that is that it will be incremental pricing on top of our monthly chronic condition management fee. The strategic intent, of course, is to make this pricing not only accretive on the top line for revenue, but also accretive to margin as well.

Yes. Thanks. Thanks for the question the short answer to that is we are actually seeing both so when we look at the marketplace. What we observe our different segments of buyers with different needs and once explained I think will be quite understandable certainly there are a class of buyers or segment of buyers who have.

Five this year.

And we're seeing that materialize in.

The healthy growth in performance that we've seen in Q3 now as it relates to engagement patterns and how Thats changed we've always said historically that.

Chosen to reimburse or cover <unk> for obesity with there.

We've got 55%.

With their employees and oftentimes there is demand and interest not only in <unk>, but also to make sure that they are supporting others.

Engagement still at the end of year, one and then if you make it to year, one you're highly likely to stay engaged with us at year, 250% are still engaged at year two.

Lisa Gill: Just as a quick follow-up there, I mean, we saw Trump making an announcement on Trump RX talking about GLP-1s in roughly the $149 range. Should I be thinking that you're going to have the opportunity to offer these at a pretty substantial discount?

Within with cardio metabolic conditions that are not on a G. L. P. One AK diabetes hypertension diabetes prevention of weight health, and that's where we're seeing demand and interest for.

And we're seeing that that trend continue in.

And we're quite pleased with that progress. So hopefully that answers your question and backs into a little bit of kind of what explains the accelerating growth in Q3.

Steve Cook: Look on the announcement. We believe that today's announcement is really a neat moment, and perhaps a transformational moment for the field of obesity. It's almost serendipitous that it occurred on the day that we launched a prescribing solution. Because as shared, we've been looking toward a world with different meds, different price points, perhaps even different price points at different doses with different indications. That world creates a lot of complexity for buyers. That world creates an opportunity to simplify that for buyers and members. That's germane to the news we announced today. We're thrilled by it. I mean, at the end of the day, lower prices enable broadened access, and we think that's a great thing through the world, and are really heartened with seeing that news.

A significant multi product sale opportunity. However, there still is a large segment of buyers out there both small and very very large that are sitting on the sidelines regarding their decision to cover and reimburse <unk>. Some of them have said no. Some of them are still actively.

It does super helpful. Thank you.

Okay.

Thank you one moment for our next question.

Our next question comes from the line of Ryan Macdonald from Needham and company.

Hi, Thanks for taking my questions and congrats on a great quarter and maybe this one's for Wally.

Considering it and in those particular situations there.

Their employees are still.

Completely understand the and.

Having demand to be supported for their weight health journey and in those particular cases of course, they're not purchasing or.

And then it's great to see sort of the demand across multiple conditions, but I guess during the current selling season I'm curious.

Buying our <unk> care track, but they are interested to understand how the rest of our cardio metabolic suite.

Can be helpful for them and so we're seeing traction in both of those segments per se.

Cross across our selling season.

Lisa Gill: Great. Thank you so much.

As I mentioned before that has been our strategic intent and bet that.

Wei-Li Shao: Yeah, Lisa, thanks. Maybe I'll just add on to that a little bit just because all this news, of course, is just fresh off the page. As it relates to, will we be able to direct patients towards this price? It always has been, as we've been over the last year talking to customers and developing our prescribing plus behavior change lifestyle intervention program, which we, again, announced today, always has been the intent that we would help patients, or what we call members, find the best price because we know access and affordability is important. Again, all this information is fresh off the news wire, and we're going to have to see exactly how the price follows through from Medicare fee for service over to Medicare Advantage, over to the commercial segment.

Illusion or perhaps an alternative to solution to covering <unk> amongst your client base.

<unk>.

Whether they are covered or not is a tide that will lift.

Yes. Thanks. Thanks for the question the short answer to that is we're actually seeing both.

Our multi condition platform shifts and we're seeing that materialize and again, we're seeing that in the closing season as well as our Q3 performance and Brian. This is this is Sean here.

So when we look at the marketplace, what we observe our different segments of buyers with different needs and once explained I think will be quite understandable. Certainly there are a class of buyers or segment of buyers, who have chosen to reimburse or cover <unk> for obesity with there.

This is a good moment to remind that our PGM partners. The contracts that we have with them enable the employers that work with them to deploy the broad suite of amount of solutions and that's actually true for the employers that work with those pbms that choose to cover <unk> equally that's true for the employers that work with those pbms, who choose not to cover <unk>. So.

With their employees and oftentimes there is demand and interest not only in <unk> care track, but also to make sure that they're supporting others.

It really is a rising tide lifts all boats.

Wei-Li Shao: That's typically the flow, we'll have to see if indeed it pans out that way. We feel incredibly fortunate that we are poised in this position to be able to leverage what we think could be a transformative moment in obesity care.

Within with cardio metabolic conditions that are not on a G. L. P. One AK diabetes hypertension diabetes prevention of weight health and that's what we're seeing demand and interest for.

Scenario and then some.

Sometimes we get asked what we are seeing some although.

The exception rather than the rule clients choosing to stop coverage of <unk>. That's an area that we have some active conversations as well.

Oftentimes those clients really feel obligated to make sure that they don't leave leave their employees.

Lisa Gill: Great. Thank you.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Craig Hettenbach from Morgan Stanley.

An alert here and we can come in and really really shine light on our support on our capabilities to support people having stopped the meds.

Again all of that.

Craig Hettenbach: Thank you. Just following up on that and understanding you said it could be accretive to revenue and margin. Can you just talk even high level about just kind of investments that maybe you need to make to kind of get this off the ground, and how you think about that implications for 2026?

Stems back to the comments I made earlier and that Theres lots of different client demands and voices here and the configure ability and the scale we have to meet a multitude of those demands we believe it's a differentiator.

Considering it and in those particular situations there.

Their employees are still.

Having demand to be supported for their weight health journey and in those particular cases of course, they're not purchasing or.

Super helpful color, maybe as a follow up and I recognize we only had probably four to five hours to process sort of the Trump administration announcements here, but obviously a motto has always been sort of very focused on the commercial side of the market, but part of the announcement today, obviously is sort of the acceptance.

Steve Cook: Hey, Craig, this is Steven. Absolutely, thank you for the question. We're not talking through specific numbers at this point. We're just at the tail end of the end of our 2026 annual planning process. Obviously, to stand this up, it's going to require some investment, namely across our engineering, our product organization, as well as our sales and marketing teams. As we think through the go-forward here, we're going to plan to provide more specific guidance once we get into the March call and to be able to stand up this functionality. This has been at the back of our health plan customers, our PBM customers asking us to stand up this functionality. We do realize that it's going to be an investment that we're going to need to make in 2026.

Buying our <unk> care track, but they are interested to understand how the rest of our cardio metabolic suite.

Can be helpful for them and so we're seeing traction in both of those segments per se.

Cross across our selling season.

In terms of Medicare coverage for these drugs starting I believe in April of next year.

As I mentioned before that has been our strategic intent and bet that.

There's about 40%.

<unk>.

The 65, plus population that would be clinically eligible for dlp's does that sort of size of opportunity.

Whether they are covered or not is a tide that will lift.

Our multi condition platform shifts and we're seeing that materialize and again, we're seeing that in the closing season as well as our Q3 performance and Brian. This is this is Sean here.

Sort of create an opportunity for a modest to sort of expand beyond commercial into potentially looking for a solution for Medicare.

Overtime. Thanks.

Craig Hettenbach: Got it. Just separately, a question on the selling season. Last year, I think 50% of new customers started with two conditions or more. Just trying to get a sense in terms of, is that still the trend in terms of this year, and anything that's standing out one year to the next in terms of what's really resonating most with customers this year?

Yes, Ryan we hear Super insightful question.

This is a good moment to remind that our PGM partners. The contracts that we have with them enable the employers that work with them to deploy the broad suite of amount of solutions and actually that's actually true for the employers that work with those pbms that choose to cover <unk> equally that's true for the employers that work with those pbms, who choose not to cover <unk>. So.

Youre correct in the sense that it could potentially represent.

An expansion opportunity for us as a refresher to folks.

We are.

Heavily penetrated or focus on the commercially insured segment.

Over the recent years, we have received significantly more interest in fast growing interest in our Medicare advantage book of business.

It really is a rising tide lifts all boats.

Wei-Li Shao: Yeah. Hey, Craig, this is Wei-Li. Thanks for the question regarding the multi-product penetration. You're correct. We've said historically that we've seen quarters where closed deals for new business and upsell have far exceeded 50%. We continue to press on that, as you might imagine, and we continue to make progress on it. The results in the selling season so far, I mean, we're a little more than halfway through, but if you look at Q3, we're pleased with the progress. We continue to make traction against our multi-product sales. Maybe I'll comment too a little bit on the pipeline. Some of you probably are wondering about that too as well. In Q3, we're seeing double-digit volume deal growth Q3 to Q3 last year. We like what we see, but of course, the selling season's not over yet.

Scenario and then some.

Sometimes we get asked what we are seeing some although.

Which continues to grow across our both like condition platform.

The exception rather than the rule clients choosing to stop coverage of <unk>. That's an area that we have some active conversations as well.

And of course, then there is Medicare fee for service, which is the most pertinent for today's white house announcement regarding the price reduction for <unk>.

Oftentimes those clients really feel obligated to make sure that they don't leave leave their employees.

It's interesting we'll have to see how this evolves, but if history is any indicator.

Sure and we can come in and really really shine light on our support on our capabilities to support people having stopped the meds.

Usually when there's a policy.

Again all that.

And some of our change in this case, we pursue would be very positive policy.

Improvement or change with Medicare fee for service.

Medicare advantage then takes note.

Then follow suit.

And then after that the commercially insured segment. Then also follow suit watching Medicare advantage. So it's early days to tell whether or not that cascade will actually occur. There is a lot of details to be worked out by obviously the pharmaceutical manufacturers probably will have a very clear position on this thats just not clear yet at least to me or to us.

Wei-Li Shao: Our sales teams, you can bet, are busy closing out the year as strong as possible.

Craig Hettenbach: Great. Thank you.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Richard Close from Canaccord Genuity.

In terms of Medicare coverage for these drugs starting I believe in April of next year, That's I think there's about 40%.

Us.

But if that's the case rest assured we'll be ready to.

Catalyze and capitalize upon that opportunity.

Richard Close: Yeah, a couple of questions here. First, congratulations on the strong results. Just maybe a follow-up on the GLP-1 and maybe Steve, how you're thinking about those investments. Should we assume that you're able to, with some of the AI initiatives and whatnot, keep gross margins in this zip code of 68% even with rolling out this new offering or prescribing?

The 65, plus population that would be clinically eligible for <unk> does that sort of size of opportunity.

Awesome, Thanks for the color.

Thank you one moment for our next question.

Create an opportunity for a modest to sort of expand beyond commercial into potentially looking for a solution for Medicare.

Our next question comes from the line of David Roman from Goldman Sachs.

Thank you and I appreciate your squeezing me in here.

Overtime. Thanks.

Yes, Ryan we only hear Super insightful question.

I wanted to just to go a little bit broader here. There is clearly a ton of focus on <unk>, but maybe you could talk about how youre seeing GOP, one drive pull through and the rest of the portfolio and anything you could do to help us breakdown the contract the contributors to member growth. This quarter. The math, we're getting to is about two thirds of the growth coming.

Youre correct in the sense that it could potentially represent.

An expansion opportunity for us as a refresher to folks.

We are.

Steve Cook: Yeah, no, absolutely, Richard. Thank you for the question. As we've committed to, our goal in the future is to get to 70% annualized gross margins. A lot of the investment that we intend to complete next year is actually going to hit in operating expenses across sales, marketing, and R&D. On that front, we remain committed to hitting a 20%+ EBITDA margin, which we're going to stair-step into over the coming years. We do view 2026 as a key investment year for us.

Heavily penetrated or focused on the commercially insured segment.

Over the recent years, we have received significantly more interest in fast growing interest in our Medicare advantage book of business.

From your your established franchises and a third coming from <unk>. So any any perspective, you could provide there would be it would be helpful.

Which continues to grow across our both like condition platform.

Yes, Hi, David Wally here won't comment to the proportional or fractional split of the one thirds two thirds.

And of course, then there is Medicare fee for service, which is the most pertinent for today's Whitehouse announcement regarding the price reduction for <unk>.

But what I can say or will say is that <unk> for instance, the <unk> care track volume still is a minority.

It's interesting we'll have to see how this evolves, but if history is any indicator.

Steve Cook: Again, we're feeling a tremendous amount of demand to stand up this prescribing ability, to stand up additional functionality within our GLP-1 offering, as well as, per your comments, continue to invest in AI, which not only has the ability for our care teams to become more efficient, but also drive additional ARPU and revenue, as it has the ability to enhance product personalization and keep our members in program longer term.

Of our total new member as Ware as well as total number number so hopefully that gives you and others. Some indications. So the majority of our growth in volume is still coming from our <unk>.

Usually when there's a policy.

Now some interchange in this case, we pursue would be very positive policy.

Improvement or change with Medicare fee for service.

Medicare advantage then takes note.

Non <unk> business spread across MSA.

And follow suit.

Prevention and weight health diabetes and hypertension.

And then after that the commercially insured segment. Then also follow suit watching Medicare advantage. So it's early days to tell whether or not that cascade will actually occur theres a lot of details to be worked out but obviously the pharmaceutical manufacturers probably will have a very clear position on this thats just not clear yet at least to me or to us.

Richard Close: Okay, that's helpful. Just on the recent large partnership or CVS launch, those clients that you talked about, are those launching January 1, and the consulting, would that arrangement launch January 1 as well?

And again.

We don't think at least that that is by happenstance or by coincidence.

It is a we believe a result of our strategy around multi product.

Sales, which is again something we've been working on and pursuing for years now.

Us.

And is materializing well in the Q3 performance.

But if that's the case rest assured we'll be ready to.

David just one other key driver of over performance in the quarter.

Wei-Li Shao: Yeah. Hi, Richard. This is Wei-Li. I won't comment specifically to the performance with CVS. We have built pipeline, we have closed deals, and yeah, because it's a closing season, as with deals that we closed this year, including ones that we may be closing with CVS, you can expect that most of them, the overwhelming dominant majority of them, will be launching in the January timeframe, consistent with what normally happens there.

Catalyze and capitalize upon that opportunity.

Consistent with Q2 as our efficiencies on the marketing front. We've been this has been a tailwind for us throughout the entire course of the year as we disclosed at the end of last year, we saw a 60% increase in marketing efficacy on the campaigns that we were sending as we just go out to more customers in a more targeted with our enrollment campaigns, we would be able to become just more effective.

Awesome, Thanks for the color.

Thank you one moment for our next question.

Our next question comes from the line of David Roman from Goldman Sachs.

Thank you and I appreciate your squeezing me in here.

I wanted to just to go a little bit broader here. There is clearly a ton of focus on <unk>, but maybe you could talk about how youre seeing GOP ones drive pull through and the rest of the portfolio and anything you could do to help us break down the contract the contributors to member growth. This quarter. The math, we're getting to is about two thirds of the growth coming.

Getting more folks in the door. So that we saw that momentum also continued in Q3.

That's super helpful and I know you talked a little bit about.

Richard Close: Okay, thank you.

Growing engagement in response to an earlier question, but if you look at the trend in members one of the things that I think is unique about what you've seen in the past two years is.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Elizabeth Anderson from Evercore ISI.

From your your established franchises and a third coming from <unk>. So any any perspective, you could provide there would be it would be helpful.

For a lot of businesses like yours, you see a big uptick in Q1 in members when you expand into new contracts, then it kind of like Peters off throughout the year as people try something they don't repeat utilization, but youre sort of seeing the opposite effect.

Elizabeth Anderson: Hi guys. Congrats on the quarter, and thanks so much for the question. I was just wondering, maybe to piggyback on the back of that one a little bit, obviously, you're talking about these investments, and that makes a ton of sense in terms of the opportunities available to you. Can you remind us, sort of, if we think about the typical seasonality, does that change with any of these new initiatives that you've been talking about and launched and are planning to launch? Because as I'm thinking about it, if I kind of flow through some of the margin outperformance year to date with some of the typical seasonality, I can get sort of well above your guidance rate. I just want to make sure I have that down correctly.

Yes, Hi, David Wally here won't comment to the proportional or fractional split of the one thirds two thirds.

But what I can say or will say is that <unk> for instance, the <unk> care track volume still is a minority.

Big step up and then actually continued incremental growth from there in member so Steve is that or obviously there is a dynamic there.

Of our total new member as Ware as well as total number number so hopefully that gives you and others. Some indications. So the majority of our growth in volume is still coming from our <unk>.

With product value proposition, but also marketing effectiveness, but maybe help us understand a little bit.

Better what's helping you diverge from what we normally see in businesses are sort of similar structure.

Non <unk> business spread across MSA.

Prevention and weight health diabetes and hypertension.

Yes.

To make sure I understand the question I think youre asking this is wally by the way asking about hey, listen most companies.

And again.

We don't think at least that that is by happenstance or by coincidence.

Wei-Li Shao: Yeah. Hi, Elizabeth. Good to hear from you. This is Wei-Li. Regarding some of the new investments and the announcements, specifically, for instance, around prescribing and how we're going to integrate that with our GLP-1 CareTrack. Regarding the typical seasonality and selling, of course, again, we've only just announced it. We will begin commence selling in the early part of next year. We anticipate that, like any other new offering that is as significant potentially as this one, it'll follow the normal selling cycle. That selling cycle in the enterprise world, B2B world, could be anywhere from 6 months, 12 months, 18 months, depending upon the client. You would expect that. As we do that, we'll follow that normal selling cycle. There are unlikely to be immediate sales because we've got to move through that motion.

And you can see this in the global App download data, especially with the sensor tower data.

It is a we believe a result of our strategy around multi product.

Have strong performance in Q1, and then just a downward slant to Q4, and then a strong repeated cyclic.

Sales, which is again something we've been working on and pursuing for years now.

And is materializing well in the Q3 performance.

Cyclical performance in Q1.

We have it's true it appears that.

David just one other key driver of over performance in the quarter.

Maybe we have a little bit of a different trend.

I think that what we've seen are a few drivers that have led to Q3 performance.

The first one of course is back to the multi product I mean. This is this is a classic example of what you do in the previous year.

Either hurt you or help you in the following year, depending on how well you do.

Is it getting more folks in the door. So that we saw that momentum also continued in Q3.

Which means of the multi condition.

Kind of.

That's super helpful and I know you talked a little bit about.

Product penetration success that we've had in previous years, including last year selling cycle paying off now in the back half of this year.

Growing engagement in response to an earlier question, but if you look at the trend in members one of the things that I think is unique about what you've seen in the past two years is.

Steve Cook: Hey, Elizabeth, I would just add in terms of specifically on your guidance question, seasonality, historically speaking, Q4 is a little bit slower as we get towards the holidays. While revenue is sequentially increasing up from $68 million to $69 million on an implied level, that's mostly due to just going into that back half into Q4 and getting into the holiday season. We're going to spend the rest of that Q4 really building a pipeline and make sure that we hit 2026 strong out of the gate.

Second piece is what you mentioned that I'll pick up on and we feel like Youre correct as on the marketing outreach or marketing enrollment rate performance side of things.

Steve alluded to a little bit earlier, we have in 2020 for salt.

The 60% improvement in enrollment rate performance.

Back to him that we would continue to work on that and we have and we are seeing.

Big step up and then actually continued incremental growth from there in member so Steve is that or obviously there is a dynamic there.

Continued improvement in enrollment rate performance through the year and that certainly has been a contributor as well.

Elizabeth Anderson: Perfect. That's very helpful. Thank you.

With product value proposition, but also marketing effectiveness, but maybe help us understand a little bit.

Third and last piece I'd say is that.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Saket Kalia from Barclays.

We.

For many many years now have been working on a what we call a multi campaign digital outreach strategy complemented by our multi channel outreach strategy for instance, digital signage on site as well as direct mail and all the other things you might imagine.

Better what's helping you diverge from what we normally see in businesses are sort of similar structure.

Steve Cook: Okay, great. Hey guys, thanks for taking my questions here, and congrats on these results. Sean and Wei-Li, maybe for you folks. Specifically, on going back to sort of the GLP-1 mechanics, maybe the question is, is this really geared towards existing subscribers of your life cycle management tools, or is this something that's really meant to pull through new subscribers of those tools? I certainly understand that the economics for the new offering is still very much TBD, but I'm kind of curious what the strategy was with sort of the core business.

Yes.

To make sure I understand the question I think youre asking this is wally by the way asking about hey, listen most companies.

And you can see this in the global App download data, especially with the sensor tower data.

And we feel like we.

We've got a decent rhythm and cadence that not only supports.

Have strong performance in Q1, and then just a downward slant to Q4, and then a strong repeated cyclic.

At least we saw this year a strong Q1, but also supports continued performance throughout the year as opposed to just cyclically just in Q1 and so we continue to experiment in that particular area. We're seeing some success and we believe that that also has been a contributor to what we've seen in Q3.

Cyclical performance in Q1.

We have it's true it appears that.

Maybe we have a little bit of a different trend.

I think that what we've seen are a few drivers that have led to Q3 performance.

Wei-Li Shao: Yeah, for sure. Thank you so much for the question. This is Sean here. This will be a new capability that can be turned on and, of course, offered to existing clients. Clients that offer our current GLP-1 CareTrack solutions, obviously, this is something we're going to discuss with them, against the value prop that we described to simplify their members', their employees' experience. Equally, it's something that we'll work to bring forward to net new clients as well. It's going to be a combination. Equally, I commented in my opening remarks on the importance of configurability, and I just want to punctuate that. What you find in the employer landscape relative to decisions around paying for or not paying for GLP-1s is a lot of diversity. You have various benefit strategies, you have various goals.

David This is.

Sean here one other thing to just highlight is Q3 was a very innovative quarter relative to the member experience. We talked about meal map, we talked about building on top of a modest park.

The first one of course is back to the multi product I mean. This is this is a classic example of what you do in the previous year.

We really took a big step forward in what we're able to offer our members and we found that when we launch really exciting new product capabilities as of course attractive to the members that are already using our motto equally that's interesting and attractive to folks that are just learning about our model for the first time.

Either hurt you or help you in the following year, depending on how well you do.

Means of the multi condition.

Kind of a <unk>.

Product penetration success that we've had in previous years, including last year selling cycle paying off now.

Oftentimes it gives us more to talk about in that first outreach and you can really turn the product innovation is something that helps pull more people into your experience.

In the back half of this year.

Second piece is what you mentioned that I'll pick up on and we feel like Youre correct as on the marketing outreach or marketing enrollment rate performance side of things.

Very helpful. Thank you very much everybody.

Thank you one moment for our next question.

Steve alluded to a little bit earlier, we have in 2024 saw us.

Our next question comes from the line of Jean Manheimer from Freedom capital markets.

The 60% improvement in enrollment rate performance.

Wei-Li Shao: We think enabling a lot of flexibility for these clients becomes a strategic differentiator. If you want to support Omada without prescribing, you want to add prescribing, we have flexibility there, and a number of permutations within. We are excited to really meet this unique moment where there is a lot of dynamism at the client level relative to the discussions and strategies, and we expect it to continue to change and to have flexible capabilities alongside that. We feel really meets the needs of today. Got it. Got it. That makes sense. Maybe my follow-up for you, Steve. It was another quarter of accelerating member growth year over year. Maybe it is tough to break up, but if you can, can you just talk about sort of how that member growth looks like for the GLP-1 CareTrack versus your other offerings?

Committed back to him that we would continue to work on that and we have and we are seeing.

Thanks, Good afternoon, and congrats on the great results.

Continued improvement in enrollment rate performance through the year and that certainly has been a contributor as well.

You guys publish or disclose a product density number or said differently you talk about the percent of members that are engaged in multi condition programs and how that has trended over the last couple of quarters.

Third and last piece I'd say is that.

We.

Yes, Jean Thank you for the question, what we have disclosed in the past as the percent of customers, who are working with us in a multi product fashion. So at the end of last year, we had 31% of our total customers working with us across more than one product and when we looked across the 2020 for selling season over.

And we feel like we.

We've got a decent rhythm and cadence that not only supports.

50% of our net new business started with us in our multi product fashion. So that's a metric that we're going to evaluate if we wanted to continue to disclose on a go forward basis, but we will potentially be updating that after we close out 2025.

Wei-Li Shao: Maybe relatedly, I mean, I think going back to the IPO, we kind of all assume sort of a very consistent engagement rate. Maybe just to mark to market, has the engagement rate changed at all given all the new offerings that you have? Hey, Saket, this is Wei-Li. Let me take that one as it relates to kind of demand volume across the multi-condition platform. Certainly, GLP-1s in terms of our GLP-1 CareTrack has been a tailwind in our growth. We have seen significant growth year over year with that. That is part of the growth story in Q3. It's equally important, if not more important, to say that we have experienced significant growth across the entire multi-condition platform. As folks may recall, we think that's been driven by a couple of things.

Okay.

David This is.

That's great. Thank you very much congrats.

Sean here one other thing to just highlight is Q3 was a very innovative quarter relative to the member experience. We talked about meal map, we talked about building on top of a modest park.

Thank you at this time Im showing no further questions. This concludes our motto health third quarter 2025 earnings Conference call. Thank you for participating you may now disconnect.

Oftentimes it gives us more to talk about in that first outreach and you can really turn the product innovation is something that helps pull more people into your experience.

Wei-Li Shao: The first one of which is that we've always said strategically our approach to the marketplace with GLP-1s, given GLP-1s is a gateway to the broader cardiometabolic conversation, is that the discussion around GLP-1s is a tide that will lift all ships, meaning that it opens up the door to also upsell or sell the new logos, the rest of our cardiometabolic programs in diabetes prevention, weight health, hypertension, and diabetes management. We're seeing that happen. The second one is we've been committed to a multi-condition, multi-product platform sales approach now for years. We've noted in previous disclosures the progress we've made against that strategy last year. What we're really seeing is that that selling or that multi-product penetration that we achieved last year through the selling season is really pulling through into 2025 this year. We're seeing that materialize in.

Very helpful. Thank you very much everybody.

Thank you one moment for our next question.

Our next question comes from the line of Jean Manheimer from Freedom capital markets.

Thanks, Good afternoon, and congrats on the great results.

Can you guys publish or disclose a product density number or said differently you talk about the percent of members that are engaged in multi condition programs and how that has trended over the last couple of quarters.

Yes, Jean Thank you for the question you know what we have disclosed in the past as the percent of customers, who are working with us in a multi product fashion. So at the end of last year, we had 31% of our total customers working with us across more than one product and when we looked across the 2020 for selling season over.

Wei-Li Shao: The healthy growth and performance that we've seen in Q3. Now, as it relates to engagement patterns and how that's changed, we've always said historically that we've got 55% engagement still at the end of year one. If you make it to year one, you're highly likely to stay engaged with us at year two. 50% are still engaged at year two, and we're seeing that trend continue. We're quite pleased with that progress. Hopefully it answers your question and backs into a little bit of kind of what explains the accelerated growth in Q3. It does. Super helpful. Thank you.

Okay.

That's great. Thank you very much congrats.

Thank you at this time I am showing no further questions. This concludes <unk> third quarter 2025 earnings conference call. Thank you for participating you may now disconnect.

Yeah.

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Yes.

Okay.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Ryan MacDonald from Needham and Company.

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Okay.

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Steve Cook: Hi, thanks for taking my questions, and congrats on a great quarter. Maybe this one's for Wei-Li. Completely understand. It's great to see sort of the demand across multiple conditions. I guess during the current selling season, I'm curious, we're hearing a lot of conversations around basically GLP-1 sort of starting a lot of conversations and sort of enabling broader multi-condition conversations. I guess at the starting point, are you seeing more demand, or are more of the conversations focused on using Omada as a GLP-1 companion solution or perhaps an alternative solution to covering GLP-1s amongst your client base?

Yes.

Okay.

Yes.

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Okay.

Wei-Li Shao: Yeah, thanks for the question. The short answer to that is we are actually seeing both. When we look at the marketplace, what we observe are different segments of buyers with different needs. Once explained, I think will be quite understandable. Certainly, there are a class of buyers or a segment of buyers who have chosen to reimburse or cover GLP-1s for obesity with their employees. Oftentimes, there is demand and interest not only in our GLP-1 CareTrack, but also to make sure that they're supporting others with cardiometabolic conditions that are not on a GLP-1, a.k.a. diabetes, hypertension, diabetes prevention, and weight health. That's where we're seeing demand and interest for a significant multi-product sale opportunity. However.

Wei-Li Shao: There still is a large segment of buyers out there, both small and very, very large, that are sitting on the sidelines regarding their decision to cover and reimburse GLP-1s. Some of them have said no. Some of them are still actively considering it. In those particular situations, their employees are still having demand to be supported for their weight health journey. In those particular cases, of course, they're not purchasing or buying our GLP-1 CareTrack, but they are interested to understand how the rest of our cardiometabolic suite can be helpful for them. We're seeing traction in both of those segments, per se, across our selling season. As I mentioned before, that has been our strategic intent and bet that GLP-1s, whether they're covered or not, is a tide that will lift our multi-condition platform ships. We're seeing that materialize.

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Wei-Li Shao: We're seeing that in the closing season as well as our Q3 performance. Ryan, this is Sean here. This is a good moment to remind that our PBM partners, the contracts that we have with them enable the employers that work with them to deploy the broad suite of Omada solutions. That's actually true for the employers that work with those PBMs that choose to cover GLP-1s. Equally, that's true for the employers that work with those PBMs who choose not to cover GLP-1s. It really is a rising tide, lifts all boats scenario. Sometimes we get asked, well, we are seeing some, although it's exception rather than the rule, clients choosing to stop coverage of GLPs. That's an area that we have some active conversations as well.

Wei-Li Shao: Oftentimes, those clients really feel obligated to make sure that they do not leave their employees in alert here. We can come in and really shine light on our support and our capabilities to support people having stopped the meds. All that stems back to the comments I made a bit earlier in that there are lots of different client demands and voices here. The configurability and the scale we have to meet a multitude of those demands, we believe, is a differentiator.

Steve Cook: Super helpful, Collar. Maybe as a follow-up, and I recognize we only have had probably four to five hours to process sort of the Trump administration announcement here. Obviously, Omada has always been sort of very focused on the commercial side of the market. Part of the announcement today, obviously, is sort of the acceptance in terms of Medicare coverage for these drugs starting, I believe, in April of next year. I think there's about 40% of the 65-plus population that would be clinically eligible for GLPs. Does that sort of size of opportunity sort of create an opportunity for Omada to sort of expand beyond commercial into potentially looking for a solution for Medicare over time? Thanks.

Wei-Li Shao: Yeah, Ryan, Wei-Li here. Super insightful question. You're correct in the sense that it could potentially represent an expansion opportunity for us. As a refresher to folks, we are heavily penetrated or focused on the commercially insured segment. Over the recent years, we have received significantly more interest, in fast-growing interest, in our Medicare Advantage book of business, which continues to grow across our multi-condition platform. Of course, then there's Medicare fee-for-service, which is the most pertinent for today's White House announcement regarding the price reduction for GLP-1s. It's interesting. We'll have to see how this evolves. If history is any indicator, usually when there's a policy announcement or change, in this case, we perceive to be very positive policy improvement or change with Medicare fee-for-service, that Medicare Advantage then takes note and follows suit.

Wei-Li Shao: After that, the commercially insured segment then also follows suit watching Medicare Advantage. It's early days to tell whether or not that cascade will actually occur. There's a lot of details to be worked out. Obviously, the pharmaceutical manufacturers probably will have a very clear position on this. That's just not clear yet, at least to me or to us. If that's the case, rest assured we'll be ready to catalyze and capitalize upon that opportunity.

Steve Cook: Awesome. Thanks for the color.

Operator: Thank you. One moment for our next question. Our next question comes from the line of David Roman from Goldman Sachs.

Craig Hettenbach: Thank you. I appreciate your squeezing me in here. I wanted just to go a little bit broader here. There's clearly a ton of focus on GLP-1s, but maybe you could talk about how you're seeing GLP-1s drive pull-through in the rest of the portfolio, and anything you could do to help us break down the contributors to member growth this quarter. The math we're getting to is about two-thirds of the growth coming from your established franchise, about 1/3 coming from GLP-1. Any perspective you could provide there would be helpful.

Wei-Li Shao: Yeah. Hi, David. Wei-Li here. Won't comment to the proportional or fractional split of the 1/3, 2/3. What I can say or will say is that GLP-1, for instance, a GLP-1 CareTrack volume still is a minority of our total new members as well as total member number. Hopefully that gives you and others some indication. The majority of our growth and volume is still coming from our non-GLP-1 business spread across MSK, prevention and weight health, diabetes, and hypertension. Again, we don't think at least that that is by happenstance or by coincidence. It is, we believe, a result of our strategy around multi-product sales, which is, again, something we've been working on and pursuing for years now, and is materializing well in the Q3 performance.

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Richard Close: David, just one other key driver of overperformance in the quarter, very consistent with Q2, is our efficiencies on the marketing front. This has been a tailwind for us throughout the entire course of the year. As we disclosed at the end of last year, we saw a 60% increase in marketing efficacy on the campaigns that we were sending. As we just go out to more customers and are more targeted with our enrollment campaigns, we've been able to become just more effective at getting more folks in the door. We saw that momentum also continue in Q3.

Craig Hettenbach: That's super helpful. I know you talked a little bit about growing engagement in response to an earlier question. If you look at the trend in members, one of the things that I think is unique about what you've seen the past two years is, for a lot of businesses like yours, you see a big uptick in Q1 in members when you expand into new contracts. It kind of peters off throughout the year as people try something, and they don't repeat utilization. You're sort of seeing the opposite effect of a big step up and then actually continued incremental growth from there in members. Steve, is that obviously there's a dynamic there with product value proposition, but also marketing effect.

Craig Hettenbach: Maybe help us understand a little bit better what's helping you diverge from what we normally see in businesses of sort of similar structure.

Wei-Li Shao: Yeah. To make sure I understand the question, I think you're asking—this is Wei-Li, by the way—asking about, hey, listen, most companies, and you could see this in the global app download data, especially with the Sensor Tower data, have strong performance in Q1 and then just a downward slant to Q4 and then a strong repeated, cyclical performance in Q1. It's true. It appears that maybe we have a little bit of a different trend. I think that what we've seen are a few drivers that have lent to Q3 performance. The first one, of course, is back to the multi-product. I mean, this is a classic example of what you do in the previous year will either hurt you or help you in the following year, depending on how well you do, which means of the multi-condition.

Wei-Li Shao: Kind of product penetration success that we've had in previous years, including last year's selling cycle, paying off now in the back half of this year. The second piece is what you mentioned that I'll pick up on, and we feel like you're correct, is on the marketing outreach or marketing enrollment rate performance side of things. As Steve alluded to a little bit earlier, we have in 2024 saw the 60% improvement in enrollment rate performance. We committed back then that we'd continue to work on that, we have, and we're seeing continued improvement in enrollment rate performance through the year. That certainly has been a contributor as well. The third and last piece I'd say is that.

Wei-Li Shao: We, for many, many years now, have been working on what we call a multi-campaign digital outreach strategy, complemented by a multi-channel outreach strategy, for instance, digital signage on-site, as well as direct mail and all the other things you might imagine. We feel like we've got a decent rhythm and cadence that not only supports, at least we saw this year, a strong Q1, but also supports continued performance throughout the year as opposed to just cyclically just in Q1. We continue to experiment in that particular area. We're seeing some success, and we believe that that also has been a contributor to what we've seen in Q3.

Richard Close: David, this is Sean here. One other thing to just highlight is Q3 was a very innovative quarter relative to the member experience. We talked about Meal Map. We talked about building on top of Omada Spark. We really took a big step forward in what we were able to offer to members. We found that when we launch really exciting new product capabilities, that's, of course, attractive to the members that are already using Omada. Equally, that's interesting and attractive to folks that are just learning about Omada for the first time. Oftentimes it gives us more to talk about in that first outreach, and you can really turn the product innovation into something that helps pull more people into your experience.

Wei-Li Shao: Very helpful. Thank you very much, everybody.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Gene Manheimer from Freedom Capital Markets.

Wei-Li Shao: Thanks. Good afternoon, and congrats on the great results. Do you guys publish or disclose a product density number, or said differently, you talk about the percent of members that are engaged in multi-condition programs and how that has trended, say, the last couple of quarters?

Richard Close: Yeah, Gene, thank you for the question. What we have disclosed in the past is the percent of customers who are working with us in a multi-product fashion. At the end of last year, we had 31% of our total customers working with us across more than one product. When we looked across the 2024 selling season, over 50% of our net new business started with us in a multi-product fashion. That's a metric that we're going to evaluate if we want to continue to disclose on a go-forward basis, but we'll potentially be updating that after we close out 2025.

Wei-Li Shao: That's great. Thank you very much. Congrats.

Operator: Thank you. At this time, I'm showing no further questions. This concludes Omada Health's third quarter 2025 earnings conference call. Thank you for participating. You may now disconnect.

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