Q2 2026 Omada Health Inc Earnings Call

August 6, 2026

Speaker #1: You'll need to press *11 on your telephone; you will then hear an automated message advising that your hand is raised. To withdraw your question, please press *11 again.

Speaker #1: Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Craig Gracey, Vice President and Chief Accounting Officer.

Speaker #1: Please go ahead.

Speaker #2: Thank you. Good afternoon. Welcome to Omada Health, Q2 2026 earnings conference call. Joining me today are Sean Duffy, our co-founder and CEO; Wei-Li Shao, our president; and Steve Cook, our CFO.

Speaker #2: 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.

Speaker #2: We will 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.

Speaker #2: 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.

Operator: Good day. Thank you for standing by. Welcome to the Omada Health Second Quarter 2026 conference call. 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 one one on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Craig Gracey, Vice President and Chief Accounting Officer. Please go ahead.

Speaker #1: Thank you, Craig.

Speaker #3: Good afternoon, everyone, and thank you for joining us. We are excited to be speaking with points in Omada's journey to bend the curve in healthcare.

Speaker #3: First, we just reported our strongest quarter ever, reaching a record number of members, and our highest revenue in gross margin to date. With more than 2 million lifetime members served, commercial relationships with the nation's three leading PBMs, and a proven and profitable model, Omada is in its strongest position since the company's founding.

Speaker #1: advised that today's conference is being recorded . I would now like to hand the conference over to your first speaker today , Craig Gracey , President and Chief Accounting Officer .

Speaker #1: Please go ahead .

Speaker #3: Second, this strong foundation is why, after founding Omada over 15 years ago, I am ready to pass the leadership baton. On January 1, 2027, Omada's president, Wei-Li Shao, will become the Chief Executive Officer.

Craig Gracey: Thank you. Good afternoon. Welcome to Omada Health Second Quarter 2026 earnings conference call. Joining me today are Sean Duffy, our Co-founder and CEO, Wei-Li Shao, our President, and Steven Cook, our CFO. Before we begin, I would 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 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. We assume no obligation to update these forward-looking statements. With that, I will turn the call over to Sean.

Speaker #3: Wei-Li is known to many of you. Seven years ago, he joined Omada as Chief Commercial Officer, and for over 4 years has served as our president.

Craig Gracey: 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. We assume no obligation to update these forward-looking statements. With that, I will turn the call over to Sean.

Speaker #3: Wei-Li has cultivated the trust of the team and our partners, delivering not only reliable performance but new innovations that have put Omada on what we believe is a durable, long-term trajectory.

Speaker #3: I am excited to watch Omada accelerate into its next chapter under Wei-Li's leadership. I am equally excited to move into my new role as Executive Chair, where I will continue as part of the management team focusing on long-term strategy, catalyzing partnerships, and other opportunities we believe will create the greatest value for Omada over the long term.

Sean Duffy: Thank you, Craig. Good afternoon, everyone. Thank you for joining us. We are excited to be speaking with you today to discuss two significant points in Omada's journey to bend the curve in healthcare. First, we just reported our strongest quarter ever, reaching a record number of members and our highest revenue and gross margin to date. With more than 2 million lifetime members served, commercial relationships with the nation's 3 leading PBMs, and a proven and profitable model, Omada is in its strongest position since the company's founding. Second, this strong foundation is why, after founding Omada over 15 years ago, I am ready to pass the leadership baton. On 1 January 2027, Omada's President, Wei-Li Shao, will become the Chief Executive Officer. Wei-Li is known to many of you.

Speaker #3: Before I hand it over to Wei-Li to discuss our operational performance, I want to spend a moment to highlight what matters most to us here at Omada, and that's the people we served.

Speaker #3: I'm glad my organization provided Omada as a health option. Over the past year, the helpful resources, daily tracking, and guidance from my diabetes specialist and my health coach helped me achieve major milestones.

Speaker #3: Thanks to them, I reached my target weight, put my diabetes in full control, and completely reversed my hypertension, by transforming my lifestyle. I am incredibly grateful for the support.

Speaker #3: Stories like that are why we exist. As we talk about revenue, margins, and membership growth, which are important indicators of the business we're building, I want to remind everybody that behind those numbers is someone working to live healthier, avoid disease progression, and get the support they need between visits with their physician.

Sean Duffy: Seven years ago, he joined Omada as chief commercial officer and for over four years has served as our president. Wei-Li has cultivated the trust of the team and our partners, delivering not only reliable performance, but new innovations that have put Omada on what we believe is a durable long-term trajectory. I am excited to watch Omada accelerate into its next chapter under Wei-Li's leadership. I am equally excited to move into my new role as executive chair, where I will continue as part of the management team, focusing on long-term strategy, catalyzing partnerships and other opportunities we believe will create the greatest value for Omada over the long term. Before I hand it over to Wei-Li to discuss our operational performance, I want to spend a moment to highlight what matters most to us here at Omada, and that's the people we served.

Speaker #3: That's the mission that continues to drive us. With that, I'll turn it over to Wei-Li to discuss the operational momentum we have seen across the business.

Speaker #4: Thanks, Sean. Before we turn to the quarter, I want to express my gratitude for the opportunity to become Omada's CEO in January. It's a genuine honor.

Sean Duffy: I am excited to watch Omada accelerate into its next chapter under Wei-Li's leadership. I am equally excited to move into my new role as executive chair, where I will continue as part of the management team, focusing on long-term strategy, catalyzing partnerships and other opportunities we believe will create the greatest value for Omada over the long term. Before I hand it over to Wei-Li to discuss our operational performance, I want to spend a moment to highlight what matters most to us here at Omada, and that's the people we served.

Speaker #4: This is a defining moment for Omada, as three powerful forces converge to shape our next chapter: first, the commercial reach we are building, allows us to bring high-quality, clinical care to more and more Americans; allowing us to further our mission to bend the curve.

Speaker #4: Second, GLP-1s and adjacent therapies are powerful new tools that complement what we treat and how we treat it. And third, the rapid evolution of AI is reshaping how personalized care can be delivered at scale.

Sean Duffy: I'm glad my organization provided Omada as a health option. Over the past year, the helpful resources, daily tracking, and guidance from my diabetes specialist and my health coach helped me achieve major milestones. Thanks to them, I reached my target weight, put my diabetes in full control, and completely reversed my hypertension by transforming my lifestyle. I am incredibly grateful for the support. Stories like that are why we exist. As we talk about revenue, margins, and membership growth, which are important indicators of the business we're building, I want to remind everybody that behind those numbers is someone working to live healthier, avoid disease progression, and get the support they need between visits with their physician. That's the mission that continues to drive us. With that, I'll turn it over to Wei-Li to discuss the operational momentum we have seen across the business.

Speaker #4: My focus as CEO will be translating these forces into better health outcomes for millions of Americans. We have shown our model works, and our results support our ambitions.

Sean Duffy: Thanks to them, I reached my target weight, put my diabetes in full control, and completely reversed my hypertension by transforming my lifestyle. I am incredibly grateful for the support. Stories like that are why we exist. As we talk about revenue, margins, and membership growth, which are important indicators of the business we're building, I want to remind everybody that behind those numbers is someone working to live healthier, avoid disease progression, and get the support they need between visits with their physician. That's the mission that continues to drive us. With that, I'll turn it over to Wei-Li to discuss the operational momentum we have seen across the business.

Speaker #4: Now is the time to push even harder on our mission to bend the curve of chronic disease in America. As Sean mentioned, this was a record-setting quarter that we're incredibly proud of.

Stories like that are why we exist.

Speaker #4: Q2 caps off an exceptional first half of 2026 for Omada. Year over year, we delivered 43% revenue growth and expanded gross margin by $700 basis points to $73% on a GAAP basis, and by $600 points to $74% on a non-GAAP basis.

As we talk about Revenue, margins and membership growth which are important indicators of the business, we're building. I want to remind everybody that behind those numbers. Is someone working to live healthier, avoid disease, progression and get the support they need between visits with their physician.

Speaker #4: We also generated $5 million in net income and $11 million in adjusted EBITDA versus a loss a year ago. Once again, we exceeded consensus, enabling us to raise our full-year outlook.

Wei-Li Shao: Thanks, Sean. Before we turn to the quarter, I want to express my gratitude for the opportunity to become Omada's CEO in January. It's a genuine honor. This is a defining moment for Omada as three powerful forces converge to shape our next chapter. First, the commercial reach we are building allows us to bring high-quality clinical care to more and more Americans, allowing us to further our mission to bend the curve. Second, GLP-1s and adjacent therapies are powerful new tools that complement what we treat and how we treat it. Third, the rapid evolution of AI is reshaping how personalized care can be delivered at scale. My focus as CEO will be translating these forces into better health outcomes for millions of Americans. We have shown our model works, and our results support our ambitions.

That's the mission that continues to drive us with that. I'll turn it over to, we lie to discuss the operational momentum. We have seen across the business.

Thanks Sean. Before we turn to the quarter, I want to express my gratitude for the opportunity to become as CEO in January. It's a genuine honor.

Speaker #4: More importantly, we saw strong momentum across our programs, bringing the total members as of the end of the second quarter to 1.1 million, up 45% year over year.

Speaker #4: I will walk through our Q2 execution through the four parts we are focused on: covered lives, enrollment, engagement, and operating efficiency. Covered lives represents the individuals with benefits coverage to apply for and enroll in one or more of our programs.

This is a defining moment for Alma as three powerful forces converge to shape our next chapter. First, the commercial reach we are building allows us to bring high-quality clinical care to more and more Americans, allowing us to further our mission to bend the curve.

Second glp1 and adjacent therapies are powerful new tools that complement what we treat and how we treat it.

Speaker #4: Through our employer, health plan, pharmacy benefit manager, and other customers, we update this figure annually. As of December 2025, we had more than 25 million estimated eligible covered lives, and we are building off that base as we set up for 2027.

And third, the rapid evolution of AI is reshaping how personalized care can be delivered at scale.

My focus is CEO will be translating these forces into Better Health outcomes for millions of Americans.

Wei-Li Shao: Now is the time to push even harder on our mission to bend the curve of chronic disease in America. As Sean mentioned, this was a record-setting quarter that we're incredibly proud of. Q2 caps off an exceptional H1 of 2026 for Omada. Year-over-year, we delivered 43% revenue growth and expanded gross margin by 700 basis points to 73% on a GAAP basis and by 600 points to 74% on a non-GAAP basis. We also generated $5 million in net income and $11 million in adjusted EBITDA versus a loss a year ago. Once again, we exceeded consensus, enabling us to raise our full-year outlook. More importantly, we saw strong momentum across our programs, bringing the total numbers as of the end of Q2 to 1.1 million, up 45% year-over-year.

We have shown our model works and our results. Support our ambitions.

Speaker #4: A quick reminder on the typical seasonality of our commercial year. The first half is when we build new customer relationships. The second half is historically when we close them, and January is when the annual benefits cycle launches.

Now is the time to push even harder on our mission to bend the curve of chronic disease in America.

as Sean mentioned, this was a record-setting quarter that we're incredibly proud of

Q2 caps off an exceptional first half of 2026 for omada.

Speaker #4: Q2 sits at the front end of that cycle. Our commercial progress in Q2 continued to be strong, like we saw last year. During the quarter, we added new customers spanning food service, national retail, public sector education, and industrial employers.

Speaker #4: These wins support the pipeline we expect to close the rest of the year, and we have seen particular strength in our new products, including our GLP-1 suite and cholesterol.

Year-over-year, we delivered 43% revenue growth and expanded gross margins by 700 basis points to 73% on a GAAP basis and by 600 basis points to 74% on a non-GAAP basis. We also generated $5 million in net income and $11 million in adjusted EBITDA, versus a loss a year ago.

Speaker #4: The breadth here reflects something fundamental to our business: the need for chronic care support is broad and diverse across the types of employers and categories of conditions we are positioned to treat.

Wei-Li Shao: I will walk through our Q2 execution through the four parts we are focused on: covered lives, enrollment, engagement, and operating efficiency. Covered lives represents the individuals with benefits coverage to apply for and enroll in one or more of our programs through our employer, health plan, pharmacy benefit manager, and other customers. We update this figure annually. As of December 2025, we had more than 25 million estimated eligible covered lives, and we are building off that base as we set up for 2027. A quick reminder on the typical seasonality of our commercial year. The H1 is when we build new customer relationships. The H2 is historically when we close them, and January is when the annual benefit cycle launches. Q2 sits at the front end of that cycle. Our commercial progress in Q2 continued to be strong like we saw last year.

Once again, we exceeded consensus, enabling us to raise our full-year outlook. More importantly, we saw strong momentum across our programs, bringing the total numbers as of the end of the second quarter to 1.1 million, up 45% year-over-year.

Speaker #4: Turning to our newer PBM channels, we also saw continued progress in Q2. One channel, now in its second year, has built a strong customer pipeline into the second half and tracking ahead of our expectations.

We will walk through our Q2 execution through the 4 parts. We are focused on covered lives enrollment engagement and operating efficiency.

Speaker #4: The other, which is also our first partner to include our prescribing program, is in the very early stages of its sales motion with encouraging signs.

Wei-Li Shao: As of December 2025, we had more than 25 million estimated eligible covered lives, and we are building off that base as we set up for 2027. A quick reminder on the typical seasonality of our commercial year. The H1 is when we build new customer relationships. The H2 is historically when we close them, and January is when the annual benefit cycle launches. Q2 sits at the front end of that cycle. Our commercial progress in Q2 continued to be strong like we saw last year.

Speaker #4: We also deepened our footprint inside customers we already serve. The expansion I'm most excited to talk about this quarter is with the healthcare services corporation, or HCSC, one of the largest blues plans in the country and a partner we have worked with for several years across our prevention and hypertension programs.

Covered lives represents the individuals with Benefits coverage to apply for and enroll in 1 or more of our programs through our employer. Health Plan, Pharmacy, benefit manager, and other customers. We update this figure annually, as of December 2025, we had more than 25 million estimated eligible covered lives and we

We are building off that base as we set up for 2027.

Speaker #4: In Q2, we extended those programs into HCSC's fully insured book of business in three additional states, reaching an additional 1.5 million covered lives, launching in 2027.

A quick reminder on the typical seasonality of our commercial year: The first half is when we build new customer relationships. The second half is, historically, when we close them, and January is when the annual benefit cycle launches. Q2 sits at the front end of that cycle.

Wei-Li Shao: During the quarter, we added new customers spanning food service, national retail, public sector education, and industrial employers. These wins support the pipeline we expect to close the rest of the year. We have seen particular strength in our new products, including our GLP-1 suite and cholesterol. The breadth here reflects something fundamental to our business. The need for chronic care support is broad and diverse across the types of employers and categories of conditions we are positioned to treat. Turning to our newer PBM channels, we also saw continued progress in Q2. One channel, now in its second year, has built a strong customer pipeline into the H2 and tracking ahead of our expectations. The other, which is also our first partner to include our prescribing program, is in the very early stages of its sales motion with encouraging signs.

Our commercial progress in Q2 continued to be strong. Like we saw last year.

Speaker #4: This expansion matters for a couple of reasons. First, HCSC is an example of the kind of long-standing partner we can expand with over time, as we prove our results across successive programs.

During the quarter, we added new customers spanning Food Service National Retail, public sector education, and Industrial employers.

Speaker #4: And second, the fully insured component is embedded at the benefit level, which means members can enroll directly without a downstream employer sales cycle. This is the kind of channel dynamic we are working to build for scale.

Wei-Li Shao: The breadth here reflects something fundamental to our business. The need for chronic care support is broad and diverse across the types of employers and categories of conditions we are positioned to treat. Turning to our newer PBM channels, we also saw continued progress in Q2. One channel, now in its second year, has built a strong customer pipeline into the H2 and tracking ahead of our expectations. The other, which is also our first partner to include our prescribing program, is in the very early stages of its sales motion with encouraging signs.

These winds support the pipeline. We expect to close the rest of the year. And we have seen particular strength in our new products, including our glp1 suite and cholesterol.

Speaker #4: We believe Q2 was a strong quarter for the front end of our commercial cycle. We saw new customer wins spanning diverse industries, meaningful progress in our newer PBM channels, and continue to expand inside customers we already serve.

The breadth here reflects something fundamental to our business. The need for chronic care support is broad and diverse across the types of employers and categories of conditions we are positioned to treat.

Turning to our newer PBM channels. We also saw a continued progress in Q2

Speaker #4: This is the covered lives base we will seek to activate through the 2027 benefits cycle, and we believe that the momentum this year is setting up for a strong second half.

1 channel. Now, in its second year as built a strong customer pipeline, into the second half and tracking ahead of our expectations,

Speaker #4: Turning now to enrollment. Enrollment is where we turn covered lives into Omada members. Let me highlight three things for the quarter. The first and most important is the breadth of our enrollment growth.

Wei-Li Shao: We also deepened our footprint inside customers we already serve. The expansion I'm most excited to talk about this quarter is with the Health Care Service Corporation, or HCSC, one of the largest Blues plans in the country and a partner we have worked with for several years across our prevention and hypertension programs. In Q2, we extended those programs into HCSC's fully insured book of business in three additional states, reaching an additional 1.5 million covered lives launching in 2027. This expansion matters for a couple of reasons. First, HCSC is an example of the kind of long-standing partner we can expand with over time as we prove our results across successive programs. Second, the fully insured component is embedded at the benefit level, which means members can enroll directly without a downstream employer sales cycle.

The other which is also our first partner to include our prescribing program is in the very early stages of its sales motion with encouraging signs.

Speaker #4: As in Q1, growth in Q2 was broad-based through our cardiometabolic suite, reinforcing that our momentum extends well beyond a single program. Since our last earnings call, we reached two important milestones that speak to the breadth ahead.

We also deepened our footprint inside customers. We already serve the expansion. I'm most excited to talk about this quarter is with the Health Care Services, Corporation or hcsc 1 of the largest Blues plans in the country and a partner. We have worked with for several years across our prevention and hypertension programs.

Speaker #4: First, we launched cholesterol as a standalone care track for the first time, with one of the largest retailers in America. And that early engagement is an encouraging proof point of demand.

In Q2, we extended those programs into hc's fully insured book of business, in 3 additional States, reaching an additional 1.5 million covered lives launching in 2027.

Speaker #4: Second, we have advanced prescribing discussions with channel partners, and employers, including our first closed prescribing customer that will launch in 2027, which gives us an early signal on market fit for this program.

Speaker #4: Building on that same theme, revenue growth from our diabetes and hypertension programs continued to meaningfully outpace our prevention and weight health program in Q2, reflecting a healthy shift in mix programs.

Wei-Li Shao: This is the kind of channel dynamic we are working to build for scale. We believe Q2 was a strong quarter for the front end of our commercial cycle. We saw new customer wins spanning diverse industries, meaningful progress in our newer PBM channels, and continued expansion inside customers we already serve. This is a covered lives base we will seek to activate through the 2027 benefit cycle. We believe that the momentum is here setting up for a strong H2. Turning now to enrollment. Enrollment is where we turn covered lives into Omada members. Let me highlight three things for the quarter. The first and most important is the breadth of our enrollment growth. As in Q1, growth in Q2 was broad-based through our cardiometabolic suite, reinforcing that our momentum extends well beyond a single program.

How do we downstream the importer sales cycle? This is the kind of channel dynamic we are working to build for scale.

Speaker #4: As we continue to expand the platform through the likes of our GLP-1 suite and cholesterol, we believe we can continue to increase enrollment over time.

We Believe Q2 was a strong quarter for the front end of our commercial cycle. We saw a new customer win, spanning diverse Industries, meaningful progress in our newer pvm channels and continue to expansion inside customers. We already serve

Speaker #4: The second is the effectiveness of our enrollment engine. Our email campaigns are the primary channel through which employees learn about and enroll in our programs, and they converted approximately 20% higher year over year.

This is a covered lives base. We will seek to activate through the 2027 benefit cycle, and we believe that the momentum is here, setting up for a strong second half.

Turning now to enrollment.

Speaker #4: We believe this is a leading indicator of the health of the enrollment efforts, reflecting improvements in targeting, personalization, and messaging on the same audience.

Enrollment is where we turn covered lives into Omada numbers. Let me highlight three things for the quarter.

Speaker #4: The third is seasonality. Q1 was exceptionally strong, and that strength pulled enrollments earlier into the year. That is a benefit over the balance of the year because enrollments from Q1 are already an active care and generating revenue sooner.

Wei-Li Shao: Since our last earnings call, we reached two important milestones that speak to the breadth ahead. First, we launched cholesterol as a standalone care track for the first time with one of the largest retailers in America, and that early engagement is an encouraging proof point of demand. Second, we have advanced prescribing discussions with channel partners and employers, including our first closed prescribing customer that will launch in 2027, which gives us an early signal on market fit for this program. Building on that same theme, revenue growth from our diabetes and hypertension programs continued to meaningfully outpace our prevention and weight health program in Q2, reflecting a healthy shift in mix toward our higher value programs. As we continue to expand the platform through the likes of our GLP-1 suite and cholesterol, we believe we can continue to increase enrollment over time.

The first and most important is the breadth of our enrollment growth. As in, q1 growth in Q2 was broad-based to our cardio. Metabolic Suite reinforcing that our momentum extends well beyond a single program.

Speaker #4: Typically, total member base continues to grow throughout the year, but Q1 remains our strongest new enrollment period as employers launch new benefits programs. Our next major inflection comes with the 2027 benefits cycle, where we expect millions of Americans will get the opportunity to enroll with Omada and receive treatment.

Wei-Li Shao: Building on that same theme, revenue growth from our diabetes and hypertension programs continued to meaningfully outpace our prevention and weight health program in Q2, reflecting a healthy shift in mix toward our higher value programs. As we continue to expand the platform through the likes of our GLP-1 suite and cholesterol, we believe we can continue to increase enrollment over time.

Speaker #4: Which now brings me to engagement. Engagement is where members receive care from Omada and where the durability of our business shows up. One important signal from Q2 is worth highlighting.

Since our last earnings call, we reached two important milestones that speak to the breadth ahead. First, we launched cholesterol as a standalone care track for the first time with one of the largest retailers in America, and that early engagement is an encouraging proof point of demand. Second, we have advanced prescribing discussions with channel partners and employers, including our first closed prescribing customer that will launch in 2027, which gives us an early signal on market fit for this program.

Speaker #4: Members have stayed in active treatment with Omada nearly 10% longer than a year ago, driven by growth in our GLP-1 diabetes and hypertension programs in which members have typically engaged on our platform longer.

Wei-Li Shao: The second is the effectiveness of our enrollment engine. Our email campaigns are the primary channel through which employees learn about and enroll in our programs, and they converted approximately 20% higher year over year. We believe this is a leading indicator of the health of the enrollment efforts, reflecting improvements in targeting, personalization, and messaging on the same audience. The third is seasonality. Q1 was exceptionally strong, and that strength pulled enrollments earlier into the year. That is a benefit over the balance of the year because enrollments from Q1 are already in active care and generating revenue sooner. Typically, total member base continues to grow throughout the year, but Q1 remains our strongest new enrollment period as employers launch new benefits programs.

Building on that same theme, revenue growth from our diabetes and hypertension programs continued to meaningfully outpace our prevention and weight health programs in Q2, reflecting a healthy shift in mix toward our higher-value programs. As we continue to expand the platform to the likes of our GLP-1 suite and cholesterol, we believe we can continue to increase enrollment over time.

Speaker #4: This builds on the ongoing investments in our platform, including Omada Spark and Meal Map, and the increasing personalization and clinical depth we bring to member care.

Speaker #4: Longer tenure in our programs generally reflects more billable months per member, higher lifetime value, and stronger margin per member over time. Finally, let's now talk about how we deliver care and support this mission as a company.

The second is the effectiveness of our enrollment engine. Our email campaigns are the primary channel through which employees learn about and enroll in our programs, and they converted approximately 20% higher year-over-year.

We believe this is a leading indicator of the health of the enrollment efforts, reflecting improvements in targeting, personalization, and messaging for the same audience.

Speaker #4: Our cost to serve has declined over 10% year over year as measured by cost to revenue per member on a trailing 12-month basis. This has been driven by increased efficiency in delivering both digital and human care.

The third is seasonality, q1 was exceptionally strong and that strength pulled enrollments earlier into the year. That is a benefit over the balance of the year, because enrollments from q1 are already an active care and generating Revenue sooner.

Speaker #4: On human care delivery, we have continued to see rising capacity per care team member as we scale. We are putting AI and machine learning to work throughout our support for the care team, from smarter tooling for our coaches to better prediction of member demand to more standardized ways of working across our member-facing teams.

Wei-Li Shao: Our next major inflection comes with the 2027 benefits cycle, where we expect millions of Americans will get the opportunity to enroll with Omada and receive treatment. Which now brings me to engagement. Engagement is where members receive care from Omada and where the durability of our business shows up. One important signal from Q2 is worth highlighting. Members have stayed in active treatment with Omada nearly 10% longer than a year ago, driven by growth in our GLP-1, diabetes, and hypertension programs, in which members have typically engaged on our platform longer. This builds on the ongoing investments in our platform, including OmadaSpark and Meal Map, and the increasing personalization and clinical depth we bring to member care. Longer tenure in our programs generally reflects more billable months per member, higher lifetime value, and stronger margin per member over time.

Typically total member base continues to grow throughout the year but q1 remains our strongest new enrollment period as employers launch new benefits programs.

Our next major inflection comes with a 2027 benefit cycle, where we expect millions of Americans will get the opportunity to enroll with omada and receive treatment.

Speaker #4: Beyond the decline in the cost to deliver care, the broader business has also become more efficient in support of our mission. Despite significant investments to stand up new programs and channel partners, we have delivered 41% incremental adjusted EBITDA margin and lowered non-GAAP operating expenses from 68% of revenue a year ago to 62% this quarter.

Which now brings me to engagement.

Wei-Li Shao: One important signal from Q2 is worth highlighting. Members have stayed in active treatment with Omada nearly 10% longer than a year ago, driven by growth in our GLP-1, diabetes, and hypertension programs, in which members have typically engaged on our platform longer. This builds on the ongoing investments in our platform, including OmadaSpark and Meal Map, and the increasing personalization and clinical depth we bring to member care. Longer tenure in our programs generally reflects more billable months per member, higher lifetime value, and stronger margin per member over time.

Engagement is where numbers receive care from omada and where the durability of our business shows up.

1 important signal from Q2 is worth highlighting.

Speaker #4: We believe that this demonstrates our ability to invest in Omada's growth at increasing rates of return. And it is the operational engine behind the margin expansion speed is about to walk through.

Members of state and active treatment with omad and nearly 10% longer than a year ago, driven by growth in our glp1 diabetes and hypertension programs in which members of typically engaged on our platform longer.

This Builds on the ongoing investments in our platforms including omada, spark and meal map in the increasing personalization and clinical depth. We bring to number of care.

Speaker #4: With that operational picture in mind, let me turn it over to Steve, for the financials.

Speaker #5: Thank you, Wei-Li. Hello, everyone. Q2 was the strongest second quarter in Omada's history. We set quarterly records for revenue at $88 million, gross margin at 73% on a GAAP basis, and 74% on a non-GAAP basis.

Wei-Li Shao: Finally, let's now talk about how we deliver care and support this mission as a company. Our cost to serve has declined over 10% year over year, as measured by cost of revenue per member on a trailing 12-month basis. This has been driven by increased efficiency in delivering both digital and human care. On human care delivery, we have continued to see rising capacity per care team member as we scale. We are putting AI and machine learning to work throughout our support for the care team, from smarter tooling for our coaches, to better prediction of member demand, to more standardized ways of working across our member facing teams. Beyond the decline in the cost to deliver care, the broader business has also become more efficient in support of our mission.

Longer tenure in our programs generally reflects more billable months per member, higher lifetime value, and stronger margin per member over time.

Finally, let's now talk about how we deliver care and support this mission as a company.

Speaker #5: That income at $5 million and adjusted EBITDA at $11 million. Q2 also marked our second quarter of GAAP net income profitability, following the fourth quarter of 2025.

Speaker #5: These are meaningful milestones for the business, and we believe they reflect the structural profitability of the model we are building. I will walk through Q2 with the four operational drivers Wei-Li just covered in mind, then turn to guidance and the balance sheet.

Our cost to serve is decline over. 10% year-over-year as measured by cost of Revenue per member on a trailing 12-month basis. This has been driven by increased efficiency in delivering both digital and human Care on human care. Delivery, we have continued to see Rising capacity per care team member as we scale, we are putting Ai and machine learning to work throughout our support for the care team from smarter tooling for our code,

Speaker #5: Starting with revenue, Q2 revenue was $88 million, up 43% year over year, and up 13% sequentially from Q1, driven by continued strength across our GLP-1 care track, increased multi-condition penetration across our cardiometabolic suite, and continued progress in enrollment effectiveness.

Roaches to better prediction of member demand to more standardized ways of working across our number facing teams.

Wei-Li Shao: Despite significant investments to stand up new programs and channel partners, we have delivered 41% incremental adjusted EBITDA margin and lowered non-GAAP operating expenses from 68% of revenue a year ago to 62% this quarter. We believe that this demonstrates our ability to invest in Omada's growth at increasing rates of return, and it is the operational engine behind the margin expansion Steve is about to walk through. With that operational picture in mind, let me turn it over to Steve for the financials.

Beyond the decline in the cost to deliver care, the broader business also becomes more efficient in support of our mission.

Speaker #5: Revenue growth in our diabetes and hypertension programs continued to outpace our overall revenue growth of 43%, consistent with the enrollment breadth Wei-Li described. Our growing member base is a direct result of that revenue-driving activity, and it brings me to something new we are sharing this quarter.

Speaker #5: We ended Q2 with approximately $1.1 million total members, up 45% year over year, reflecting the enrollment effectiveness Wei-Li described. As a reminder, we define a member for this purpose as a person enrolled in one of our virtual care programs who generated a billing event in the preceding 12 months.

Despite significant Investments to stand up new programs and channel Partners. We have delivered 41% incremental adjusted ibida margin and lowered non-gaap operating expenses from 68 Revenue, a year ago. 62% this quarter, we believe that this demonstrates our ability to invest in omana's growth at increasing rates of return. And it is the operational engine behind the margin expansion. Steve is about to walk through.

Steven Cook: Thank you, Wei-Li. Hello, everyone. Q2 was the strongest second quarter in Omada's history. We set quarterly records for revenue at $88 million, gross margin at 73% on a GAAP basis and 74% on a non-GAAP basis, net income at $5 million, and adjusted EBITDA at $11 million. Q2 also marked our second quarter of GAAP net income profitability following the Q4 of 2025. These are meaningful milestones for the business, and we believe they reflect the structural profitability of the model we are building. I will walk through Q2 with the four operational drivers Wei-Li just covered in mind, then turn to guidance and the balance sheet. Starting with revenue, Q2 revenue was $88 million, up 43% year over year and up 13% sequentially from Q1, driven by continued strength across our GLP-1 care track, increased multi-condition penetration across our cardiometabolic suite, and continued progress in enrollment effectiveness.

Speaker #5: Because we primarily bill on the care activity our members receive, rather than on a flat subscription, we believe the most representative measurement of our unit economics is trailing 12-month revenue set against that same 12-month member base.

Thank you Riley. Hello everyone. Q2 is the strongest second quarter in a modest history. We set quarterly records for Revenue at 88 million gross margin at 73% on a gap basis and 74% on a non-gaap basis that income at 5 million and adjusted ibaa at 11 million.

Speaker #5: On that basis, trailing 12-month revenue per total member was $284 in Q2, compared with $279 in Q2 of last year. We believe this evaluates the unit economics of our member base and we would typically expect this metric to move modestly up or down in any given quarter as cohort mix, pricing mix, and seasonality shift at the margin.

Steven Cook: I will walk through Q2 with the four operational drivers Wei-Li just covered in mind, then turn to guidance and the balance sheet. Starting with revenue, Q2 revenue was $88 million, up 43% year over year and up 13% sequentially from Q1, driven by continued strength across our GLP-1 care track, increased multi-condition penetration across our cardiometabolic suite, and continued progress in enrollment effectiveness.

Q2 also marked our second quarter of gaap net. Income profitability following the fourth quarter of 2025. These are meaningful milestones for the business and we believe they reflect the structural profitability of the model. We are building.

I will walk through Q2 with the 4-operation sheet.

Speaker #5: The consistency we have seen here continues to reflect the durability of our per-member economics. Turning to gross margin, GAAP gross margin for Q2 was 73%, up from 66% in Q2 of last year.

Steven Cook: Revenue growth in our diabetes and hypertension programs continued to outpace our overall revenue growth of 43%, consistent with the enrollment breadth Wei-Li described. Our growing member base is a direct result of that revenue-driving activity, and it brings me to something new we are sharing this quarter. We ended Q2 with approximately 1.1 million total members, up 45% year over year, reflecting the enrollment effectiveness Wei-Li described. As a reminder, we define a member for this purpose as a person enrolled in one of our virtual care programs who generated a billing event in the preceding 12 months. Because we primarily bill on the care activity our members receive rather than on a flat subscription, we believe the most representative measurement of our unit economics is trailing 12-month revenue set against that same 12-month member base.

Starting with Revenue, Q2 Revenue was 88 million up 43% year-over-year and up. 13% sequentially from q1 driven by continued strength. Across our glp1 care tract. Increased multi-conductor and enrollment effectiveness.

Speaker #5: Representing approximately $700 basis points of year over year expansion. On a non-GAAP basis, gross margin was 74%, up from 68% in Q2 of last year.

Revenue growth in our diabetes and hypertension programs continues to outpace our overall revenue growth of 43%, consistent with the enrollment breadth we described.

Speaker #5: Gross margin expansion this quarter reflects a lower cost to serve our members driven by the lower care team delivery cost and reinforced by deeper multi-condition engagement and the maturation of our longer-tenure cohorts.

Our growing member base is a direct result of that revenue, driving activity, and it brings me to something new we are sharing this quarter.

Speaker #5: We have previously said we believe there is a path to exceed our current long-term target of 70% annual gross margin. Our Q2 result is consistent with that trajectory, and we will update our long-term financial framework, including gross margin, at Investor Day.

We enter Q2 with approximately 1.1 million total members up, 45% year-over-year reflecting the enrollment Effectiveness we described.

As a reminder, we Define a member for this purpose as a person enrolled in 1 of our virtual care programs who generated a billing event in the preceding 12 months.

Speaker #5: Moving to operating expenses, we drove significant operating leverage this quarter. On a GAAP basis, operating expenses fell approximately 4 percentage points as a percentage of revenue, from 73% to 69%.

Steven Cook: On that basis, trailing 12-month revenue per total member was $284 in Q2, compared with $279 in Q2 of last year. We believe this evaluates the unit economics of our member base, and we would typically expect this metric to move modestly up or down in any given quarter as cohort mix, pricing mix, and seasonality shift at the margin. The consistency we have seen here continues to reflect the durability of our per member economics. Turning to gross margin, GAAP gross margin for Q2 was 73%, up from 66% in Q2 of last year, representing approximately 700 basis points of year-over-year expansion. On a non-GAAP basis, gross margin was 74%, up from 68% in Q2 of last year.

Because we primarily bill on the care, activity are members received rather than on a flat subscription. We believe the most representative measurement of our unit economics is trailing 12 months Revenue, set against that same 12-month member base,

Speaker #5: On a non-GAAP basis, they fell approximately 6 percentage points, from 68% to 62%. That leverage reflects the drivers we have consistently pointed to, scaling through channel partnerships, getting more from our existing sales force, and tight spending discipline across the rest of the business.

On that basis, trailing 12-month Revenue per total member was 284 in Q2 compared with 279. In Q2 of last year we believe this evaluates the unit economics of Our member base and we would typically expect this metric to move modestly up or down in any given quarter as cohort mix pricing mix and seasonality shift at the margin.

Speaker #5: AI continued to be an increasingly important driver of our operating leverage as well. As we shared last quarter, we are evaluating AI tooling across every function of the company, not just any one area.

The consistency we have seen here continues to reflect the durability of our per member economics.

Speaker #5: As AI adoption deepens, we believe it can continue to support operating leverage as we look toward 2027 and beyond. GAAP net income for Q2 was more than $5 approximately $5 million in Q2 of last year, representing an improvement of approximately $11 million year over year.

Steven Cook: Gross margin expansion this quarter reflects a lower cost to serve our members, driven by the lower care team delivery cost and reinforced by deeper multi-condition engagement and the maturation of our longer tenured cohorts. We have previously said we believe there is a path to exceed our current long-term target of 70% annual gross margin. Our Q2 result is consistent with that trajectory, and we will update our long-term financial framework, including gross margin, at Investor Day. Moving to operating expenses, we drove significant operating leverage this quarter. On a GAAP basis, operating expenses fell approximately four percentage points as a percentage of revenue from 73% to 69%. On a non-GAAP basis, they fell approximately six percentage points from 68% to 62%.

According to gross margin. Gaap gross margin for Q2 is 73% up from 66% in Q2 of last year. Representing a proximately 700 basis points of year-over-year expansion on a non-gaap basis. Gross margin was 74% up from 60% in Q2 of last year.

Speaker #5: This is our second quarter of GAAP net income profitability, following the fourth quarter of 2025. Adjusted EBITDA for Q2 was approximately $11 million, an improvement of approximately $11 million year over year, and a quarterly record for Omada.

Gross margin expansion this quarter reflects a lower cost to serve our members, driven by lower care team delivery costs and reinforced by deeper multi-conductor.

Speaker #5: We believe this level of adjusted EBITDA in the second quarter reflected the structural profitability of our model playing out at scale. And it is a meaningful contributor to the improved full-year adjusted EBITDA outlook I will discuss in a moment.

We have previously said, we believe there is a path to exceed our current long-term Target of 70%, annual gross margin. Our Q2 result is consistent with that trajectory and we will update our long-term Financial framework including gross margin at investor day.

Speaker #5: Our strength in profitability profile has continued to contribute to a strong balance sheet as well. We ended Q2 with cash and cash equivalents of approximately $222 million and continued to carry no debt.

Steven Cook: That leverage reflects the drivers we have consistently pointed to, scaling through channel partnerships, getting more from our existing sales force, and tight spending discipline across the rest of the business. AI continued to be an increasingly important driver of our operating leverage as well. As we shared last quarter, we are evaluating AI tooling across every function of the company, not just any one area. As AI adoption deepens, we believe that it can continue to support operating leverage as we look toward 2027 and beyond. GAAP net income for Q2 was more than $5 million, compared with a GAAP net loss of approximately $5 million in Q2 of last year, representing an improvement of approximately $11 million year over year. This is our second quarter of GAAP net income profitability following the Q4 of 2025.

Moving to operating expenses, we drove significant, operating leverages quarter on a gap basis. Operating expenses, fell approximately 4 percentage points as a percentage of revenue from 73% to 69% on a non-gaap basis. They fell approximately 6 percentage points from 68% to 62%

Speaker #5: Now, let me turn to our outlook. Our extraordinary second quarter performance and continued visibility into the second half give us the confidence to raise our full year 2026 outlook on both revenue and adjusted EBITDA.

that leverage reflects the drivers. We have consistently pointed to scaling through Channel Partnerships getting more from our existing sales, force, and tight, spending discipline across the rest of the business.

Speaker #5: We are raising full-year revenue guidance to $334 million to $340 million, up from the prior guidance of $322 million to $330 million. At the midpoint, this represents approximately 30 percentage point revenue growth compared with 2025.

Speaker #5: We are raising full-year adjusted EBITDA guidance to $21 million to $27 million, up from prior guidance of $14 million to $20 million. At the midpoint, this represents an improvement of approximately $18 million compared with 2025, or roughly four times our 2025 results.

AI continued to be an increasingly important driver of our operating leverage as well. As we shared last quarter, we are evaluating AI tooling across every function of the company, not just any one area. As AI adoption deepens, we believe that it can continue to support operating leverage as we look toward 2027 and beyond.

Cabin for Q2 was more than 5 million compared with a gap. Net loss of approximately 5 million in Q2 of last year. Representing an improvement of approximately 11 million year-over-year

Steven Cook: Adjusted EBITDA for Q2 was approximately $11 million, an improvement of approximately $11 million year over year and a quarterly record for Omada. We believe this level of adjusted EBITDA in the Q2 reflected the structural profitability of our model playing out at scale, and it is a meaningful contributor to the improved full-year adjusted EBITDA outlook I will discuss in a moment. Our strength and profitability profile has continued to contribute to a strong balance sheet as well. We ended Q2 with cash and cash equivalents of approximately $222 million and continue to carry no debt. Let me turn to our outlook. Our extraordinary Q2 performance and continued visibility into the H2 give us the confidence to raise our full year 2026 outlook on both revenue and adjusted EBITDA.

in the fourth quarter of 2025.

Speaker #5: Our raised outlook reflects both the extraordinary strength of Q2 and a more measured second-half growth trajectory based on the historic seasonality and contracted visibility.

Speaker #5: As Wei-Li described earlier, our business has historically followed a typical seasonal pattern, where typically Q1 is our strongest, new enrollment period. Followed by continued revenue contribution from that member base through the balance of the year.

Adjusted. EBA for Q2 is approximately 11 million. An improvement of approximately 11 million year-over-year and a quarterly record for Ada. We believe this level of adjusted Eva, dog? The second quarter reflected the structural profitability of our model playing out at scale.

And it is a meaningful contributor to the improved full-year adjusted EVA outlook. I will discuss that in a moment.

Speaker #5: Consistent with that pattern, our year-over-year growth rate is expected to moderate in the second half as we follow an exceptionally strong first-half enrollment period.

Speaker #5: We expect those first-half enrollments to continue to generate revenue at healthy per-member economics to sustain a strong margin profile through the rest of 2026.

Our strength and profitability profile has continued to contribute to a strong balance sheet as well. We ended Q2 with cash and cash equivalents of approximately 222 million and continue to carry no debt.

Speaker #5: Q1 remains our strongest enrollment period each year, as employers launch new benefit programs. And the next significant enrollment inflection point comes with the 2027 benefit cycle.

Steven Cook: We are raising full year revenue guidance to $334 million to $340 million, up from the prior guidance of $322 million to $330 million. At the midpoint, this represents approximately 30 percentage point revenue growth compared with 2025. We are raising full year adjusted EBITDA guidance to $21 million to $27 million, up from prior guidance of $14 million to $20 million. At the midpoint, this represents an improvement of approximately $18 million compared with 2025, or roughly four times our 2025 result. Our raised outlook reflects both the extraordinary strength of Q2 and a more measured H2 growth trajectory based on the historic seasonality and contracted visibility. As Wei-Li described earlier, our business has historically followed a typical seasonal pattern where typically Q1 is our strongest new enrollment period, followed by continued revenue contribution from that member base through the balance of the year.

Ordinary second quarter performance and continued visibility into the second half. Give us the confidence to raise our full year 2026 outlook on both revenue and adjusted Eva do

Speaker #5: At our Investor Day on September 10th, we will lay out an updated long-term financial framework, including the growth, gross margin, and operating leverage trajectories that will inform how we manage this business over the next several years.

We are raising full-year revenue guidance to $334 million to $340 million, up from the prior guidance of $322 million to $330 million. At the midpoint, this represents approximately 30 percentage points revenue growth compared with 2025.

Speaker #5: With that, we will open it up for questions.

Speaker #1: Thank you very much. At this time, we will conduct the question-and-answer session. As a reminder, to ask a question, you will need to press star 11 on your telephone.

Speaker #1: And wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster.

Steven Cook: Our raised outlook reflects both the extraordinary strength of Q2 and a more measured H2 growth trajectory based on the historic seasonality and contracted visibility. As Wei-Li described earlier, our business has historically followed a typical seasonal pattern where typically Q1 is our strongest new enrollment period, followed by continued revenue contribution from that member base through the balance of the year.

We're raising full year adjusted EBITDA guidance to $21 million to $27 million, up from prior guidance of $14 million to $20 million at the midpoint. This represents an improvement of approximately $18 million compared with 2025, or roughly four times our 2025 results.

Speaker #1: Our first question comes from the line of Craig Hettenbach of Morgan Stanley. Craig, your line is open.

Our race outlook for Flex, both the extraordinary strength of Q2 and a more measured second half growth trajectory based on the historic seasonality and contracted visibility.

Speaker #4: Yeah. Thank you. And congrats, Wei-Li. And Sean, on this transition here. I wanted to start with just the AI efficiencies. I mean, very strong gross margin performance year over year.

Steven Cook: Consistent with that pattern, our year-over-year growth rate is expected to moderate in the H2 as we follow an exceptionally strong H1 enrollment period. We expect those H1 enrollments to continue to generate revenue at healthy per member economics to sustain a strong margin profile through the rest of 2026. Q1 remains our strongest enrollment period each year as employers launch new benefit programs, and the next significant enrollment inflection point comes with the 2027 benefit cycle. At our Investor Day on 10 September, we will lay out an updated long-term financial framework, including the growth, gross margin, and operating leverage trajectories that will inform how we manage this business over the next several years. With that, we will open it up for questions.

As we described earlier, our business has historically followed a typical seasonal pattern, where Q1 is typically our strongest new enrollment period, followed by continued revenue contribution from that member base through the balance of the year.

Speaker #4: Steve, as you mentioned, kind of gives you confidence into the longer-term outlook. But anything else you can share in terms of how that's kind of flowing through, whether it's shaping your headcount decisions as the business continues to scale?

Consistent with that pattern are year-over-year growth rates. Growth rate is expected to moderate in the second half, following the exceptionally strong first-half enrollment period.

Speaker #3: Yeah. Hey, Craig. This is Sean here. Yeah. Thanks for the congratulations. Yeah. Thrilled for Wei-Li here. Yeah. So on AI, as we've shared in prior calls, it continues to be a source of leverage and important driver.

We expect those first half enrollments to continue to generate Revenue at healthy per member economics, to sustain a strong margin profile, through the rest of 2026.

If you want to, remains our strongest enrollment period each year, as employers launch new benefit programs, and the next significant enrollment inflection point comes with the 2027 benefit cycle.

Speaker #3: And this is both how we support our care teams and the member experience as well. Ranging from smarter tooling to our coaches, better prediction of member demand, more standardized ways of working across our member-facing teams, as well as the whole palette of solutions we've launched for members, including MuleMap and Omada Spark.

Operator: Thank you very much. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Craig Hettenbach of Morgan Stanley. Craig, your line is open.

At our investor day. In September 10th, we will lay out an updated, long-term Financial framework, including the growth, gross, margin and operating leverage to trajectories that will inform how we manage this business over the next several years with that. We will open it up for questions.

Speaker #3: And just to punctuate some of the results we shared, highlighting that the cost of revenue per member is down over 10%, and per Wei-Li's remarks, members have stayed active in Omada nearly 10% longer than a year ago.

Speaker #3: So this is an area where we'll continue to press forward, and we believe it's starting to show up in the numbers.

Thank you very much. This time, we will conduct the question and answer session as a reminder, to ask a question, you will need to press star 1 1 on your telephone and wait for your name to be announced to withdraw your question. Please, press star, 1 1 1, again please, stand by while we compile the Q&A roster,

Speaker #4: Great. And then just as my follow-up question, Wei-Li, you alluded to the second PBM partner tracking ahead of expectations. Anything you could share in terms of what you learned through the first partner and how that evolved?

Craig Hettenbach: Yeah, thank you. Congrats, Wei-Li and Sean, on this transition here. I wanted to start with just the AI efficiencies. I mean, very strong gross margin performance year-over-year. Steve, as you mentioned, kind of gives you confidence into the longer term outlook. Anything else you can share in terms of how that's kind of flowing through, whether it's shaping your headcount decisions as the business continues to scale?

Our first question comes from the line of Craig Hettenbach of Morgan Stanley. Craig, your line is open.

Speaker #4: And is that shaping that, or is there anything else influencing kind of the strong uptake on the second one?

Speaker #5: Yeah. Hi, Craig. Thanks for the question. Yeah. I mean, we've been working successfully with some of the top PBMs in the country now for years.

Speaker #5: And so I'd like to think that we've got in the industry a pretty strong playbook as to how that should happen. The learnings are consistent, whether it be with one of them, two of them, or three of them.

Yeah, thank you. Uh, in in congrats Wei Li, um, and Sean on on, on this transition here. Um, I want to start with just the AI efficiencies. I mean, very strong gross, margin performance year-over-year, um, Steve as you mentioned, kind of gives you confidence until a longer term Outlook, but anything else you can share in terms of how that's kind of flowing through. Um, whether it's shaping your head count decisions. As

Steven Cook: Yeah, hey, Craig. This is Sean here. Yeah, thanks for the congratulations. I thrilled for Wei-Li here. Yeah, on AI, as we've shared in prior calls, it continues to be a source of leverage and an important driver. This is both how we support our care teams and the member experience as well, ranging from smarter tooling to our coaches, better prediction of member demand, more standardized ways of working across our member facing teams, as well as the whole palette of solutions we've launched for members including MealMap and OmadaSpark. Just to punctuate some of the results we shared, highlighting that the cost of revenue per member is down over 10%, and per Wei-Li's remarks, members have stayed active

The business continues to scale.

Speaker #5: And they fall along the following lines. One of which, of course, is partnering very, very closely with their sales teams. As you all know, our sales team footprint is mighty in its capability, but small in its footprint, because we partner very, very closely with the sales teams of the PBMs and also for the health plans.

Speaker #5: And that helps to really raise the share of voice of Omada across an outsized number of potential prospects that are now showing up in our pipeline.

Speaker #5: The second thing that I think is important is also the product-market fit of our products. I mean, we sit squarely in the center of almost every benefit health benefits discussion because of our presence in GLP-1s and, of course, in the broader conversation around cardiometabolic disease.

Sean Duffy: in Omada, nearly 10% longer than a year ago. This is an area where we'll continue to press forward, and we believe it's starting to show up in the numbers.

Yeah. Hey Craig, this is Sean here. Yeah, thanks for the uh, the congratulations. A thrilled thrilled for a wayley here. Yes. On AI. Uh, as we've shared in Prior calls, uh, it continues to be a source of Leverage and important driver. And this is both how we support our care teams and the member experience as well. Ranging from smarter tooling to our coaches, uh, you know, better prediction of member demand more standardized ways of working across our member facing teams as well as the whole, uh, you know, pallet of solutions. We've launched from members uh, you know, including meal map spark and just just a punctuated, some of the results we shared, um, highlighting the cost of Revenue per member is down over 10%. And pireway Lees, remarks members of State active, in omada, nearly 10% longer than a year ago. So this is an area where we'll continue to press forward, and we believe it's a starting to show up in the numbers.

Craig Hettenbach: Great. Just as my follow-up question, Wei-Li, you alluded to the second PBM partner tracking ahead of expectations. Anything you could share in terms of what you learned through the first partner and how that evolved, and is that shaping that, or is there anything else influencing kind of the strong uptake on the second one?

Speaker #5: Still being a major, major cost driver for almost every employer in America. So the product-market fit helps a ton. And that also garners a lot of interest and excitement back personnel from the PBMs that we deal with.

Great. And then just as my follow-up question, will you alluded to the second PBM, partner tracking ahead of expectations?

Wei-Li Shao: Yeah. Hi, Craig. Thanks for the question. Yeah, we've been working successfully with some of the top PBMs in the country now for years. I'd like to think that we've got, in the industry, a pretty strong playbook as to how that should happen. The learnings are consistent, whether it be with one of them, two of them, or three of them. They fall along the following lines, one of which, of course, is partnering very closely with their sales teams. As you all know, our sales team footprint is mighty in its capability, but small in its footprint, because we partner very closely with the sales teams of the PBMs and also for the health plans. That helps to really raise the share of voice of Omada across an outsized number of potential prospects that are now showing up in our pipeline.

Anything you could share in terms of what you learned through the first partner and how that evolved and is that shaping that or is there anything else influencing kind of the strong uptake on the second 1?

Speaker #5: I would say the last thing, that is materializing, is we have a suite of products that are pretty comprehensive across the cardiometabolic spectrum. And because of that partnership, we're seeing fairly healthy build in our pipeline.

Yeah. Hi Greg. Thanks for the question. Um, yeah, I mean, we, um, you know, we've been, uh, working successfully with, um, you know, some of the top pvms in the country now for years. And so, I'd like to think that we've got, um, in the industry. A pretty strong Playbook as to how that should happen. The, the longings um, are consistent whether it be

Speaker #5: From a diversity standpoint across the cardiometabolic programs that we have, so we're excited coming into the closing season which we're just now opening up right now.

Wei-Li Shao: They fall along the following lines, one of which, of course, is partnering very closely with their sales teams. As you all know, our sales team footprint is mighty in its capability, but small in its footprint, because we partner very closely with the sales teams of the PBMs and also for the health plans. That helps to really raise the share of voice of Omada across an outsized number of potential prospects that are now showing up in our pipeline.

Speaker #4: Great. Thanks so much.

Speaker #1: Thank you. One moment for our next question. Our next question comes from the line of Ryan MacDonald of Morgan or Nathan & Company. Ryan, your line is open.

Speaker #3: Hi. Thanks for taking my questions and congrats on a great quarter and congrats, Wei-Li, as well. Sean, obviously, best of luck and well-deserved in being able to take a little bit of a step back here.

Wei-Li Shao: The second thing that I think is important is also the product market fit of our products. We sit squarely in the center of almost every health benefits discussion because of our presence in GLP-1s and, of course, in the broader conversation around cardiometabolic disease still being a major cost driver for almost every employer in America. The product market fit helps a ton, and that also garners a lot of interest and excitement back to the AEs or the sales personnel from the PBMs that we deal with. I would say the last thing that is materializing is we have a suite of products that are pretty comprehensive across the cardiometabolic spectrum. Because of that partnership, we're seeing fairly healthy build in our pipeline from a diversity standpoint across the cardiometabolic programs that we have.

Speaker #3: Maybe just want to double down on that last point, Wei-Li, about sort of the diversity of your pipeline. Because I think sometimes within the investment community, Omada gets just bucketed into sort of, "Hey, it's just a GLP-1 beneficiary, and this is a temporary sort of decision-making process." But can you just talk about sort of clearly, there's a broad discussion across multiple programs and this isn't just GLP-1s.

Speaker #3: But what do you think is resonating within your customer base and your partners that's making sort of a broader cardiometabolic health discussion sort of top of mind right now?

Speaker #5: Yeah. I mean, it's a great question. We've long said strategically, as we entered into the GLP-1 marketplace a few years ago, that it's a bit of a bridge to a broader cardiometabolic condition.

Wei-Li Shao: We're excited coming into the closing season which we're just now opening up right now.

Speaker #5: If you talk to employers, and this bears out in the Mercer surveys, the AON surveys, every year, when they ask employers, "What are the areas that you care about most and what do you care about most that are tied to what is driving the most cost in your organization?" Year after year, consistently, cardiovascular disease, metabolic disease, obesity, diabetes, heart attacks, and stroke are always within the top five, dominating a number of those positions.

Craig Hettenbach: Great. Thanks so much.

It's squarely in the center of almost every benefit uh health benefits discussion uh because of our presence in in glp ones and of course in the broader uh conversation around cardiometabolic, um you know disease uh, still being a major major cost driver for almost every employer in America. So, the product Market fit helps a ton, um, and that also Garners a lot of interest and excitement back to the AES or the sales Personnel from the pbms, uh, that, uh, that we deal with. Uh, I would say the last thing, um, that is materializing is, um, you know, we, we, we, we, we have a suite of products that are pretty comprehensive across the cardio metabolic spectrum. And, um, and because of that partnership, we're seeing fairly healthy build in our pipeline, um, from A diversity standpoint across, you know, the, the cardi metabolic programs that we have. Uh, so we're excited coming into the the closing season which we're just now opening up right now.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Ryan MacDonald of Morgan Stanley or Needham and Company. Ryan, your line is open.

Great. Thanks so much.

Thank you. 1 moment for our next question.

Ryan MacDonald: Hi, thanks for taking my questions, and congrats on a great quarter, and congrats, Wei-Li, as well. Sean, obviously, best of luck and well deserved in being able to take a little bit of a step back here. Maybe just to want to double down on that last point, Wei-Li, about sort of the diversity of your pipeline, because I think sometimes within the investment community, Omada gets just bucketed into sort of, Hey, it's just a GLP-1 beneficiary, and, This is a temporary sort of decision-making process. Can you just talk about sort of, clearly there's a broad discussion across multiple programs, and this isn't just GLP-1s. What do you think is resonating within your customer base and your partners that's making sort of a broader cardiometabolic health discussion sort of top of mind right now?

Our next question comes from the line of Ryan McDonald of Oregon or native & Company. Ryan. Your line is open.

Speaker #5: And so it's always top of mind. Then you overlay, obviously, the demand in the pool around GLP-1s. It's just amplifying the front-of-mind conversation around cardiometabolic.

Speaker #5: And we have the benefit of actually being able to play in both those spaces in the sense that we've got a full suite of cardiometabolic options across diabetes prevention, hypertension, diabetes management, of course, most recently, we announced our cholesterol program, which is doing quite well in the marketplace.

Speaker #5: And then the full suite and complement of GLP-1 care programs with the most recent launch and announcement of our prescribing program to complement our wraparound support service.

Wei-Li Shao: Yeah. It's a great question. We've long said strategically as we entered into the GLP-1 marketplace a few years ago, that it's a bit of a bridge to a broader cardiometabolic condition. If you talk to employers, this bears out in the Mercer surveys, the Aon surveys every year. When they ask employers, "What are the areas that you care about most?" What you care about most are tied to what is driving the most cost in your organization. Year after year, consistently, cardiovascular disease, metabolic disease, obesity, diabetes, heart attacks, and stroke are always within the top 5, dominating a number of those positions. It's always top of mind. You overlay, obviously, the demand and the pull around GLP-1s. It's just amplifying the front of mind conversation around cardiometabolic.

Hi, thanks for taking my questions and congrats on a great quarter and, uh, congrats way as well. Sean, uh, obviously best of luck in well-deserved and being able to take a little bit of step back here. Um, you know, maybe just to want to double down on, on that last point wely about sort of the diversity, um, of your pipeline because I think sometimes, uh, within the investment Community, you know, em gets just bucketed into sort of, hey, it's just a glp1 beneficiary. And, and, you know, this is a temporary sort of decision-making process. But, but can you just talk about sort of clearly? There's a broad discussion across multiple programs. And this isn't just glp1, but what do you think is resonating within your customer base and your partners? Uh, that's making sort of a broader cardio. Metabolic Health discussion, sort of top of mind right now.

Speaker #5: And we really tailored a number of those solutions to meet the number of different needs that are out there in the GLP-1 marketplace. So when you step back into the marketplace and you take a look and employers take a look at, "Okay.

Speaker #5: How do I address those top areas of concern?" What they usually find is the deepest and broadest cardiometabolic offering and solution out there is front and center with Omada.

Speaker #5: That in combination with our channel penetration and diversification across the top three PBMs and dozens and dozens of health plans, makes it easy for Omada to be installed.

Speaker #5: So it's a combination of the breadth and depth of our program, the outcomes. As well as the relatively easy way to contract and bring us into the organization.

Yeah, I mean it's it's a great question. Um, we've long said strategically, as we entered into the glp1 marketplace, uh, you know, a few years ago um, that it's uh a bit of a bridge to a broader cardio, metabolic condition. Um, if you talk to employers, uh, and this is Bears out in the Mercer, surveys the Aeon surveys every year, uh, when they asked employers, what are the areas that you care about most, and what you care about most are tied to what is driving the most costs in your organization year after year, consistently cardiovascular disease, metabolic disease, obesity, diabetes, um, heart attacks and stroke are all

Speaker #5: And so that's resonating among our customer base quite a bit. So there's diversity of the pipeline in that regard. I think it's probably worth mentioning too as well that we're also seeing greater channel diversification also.

Wei-Li Shao: We have the benefit of actually being able to play in both those spaces in the sense that we've got a full suite of cardiometabolic options across diabetes prevention, hypertension, diabetes management. Of course, most recently, we announced our cholesterol program, which is doing quite well in the marketplace. The full suite and complement of GLP-1 care programs with the most recent launch and announcement of our prescribing program to complement our wraparound support service. We've really tailored a number of those solutions to meet the number of different needs that are out there in the GLP-1 marketplace.

Speaker #5: We've been working quite diligently over the last few years we've brought in CVS, Optum Rx, the full complement of our cardiometabolic programs as well as our GLP-1 programs.

Speaker #5: And then most recently, as we announced in our earnings press release, the expansion with HCSC. And so channel diversification also has been important. And that's a lead indicator for revenue diversification in all of that is materializing in our pipeline that we're going to be converting in H2.

Wei-Li Shao: When you step back into the marketplace and you take a look and employers take a look at, "Okay, how do I address those top areas of concern?" What they usually find is the deepest and broadest cardiometabolic offering and solution out there is front and center with Omada. That, in combination with our channel penetration and diversification across the top 3 PBMs and dozens and dozens of health plans makes it easy for Omada to be installed. It's a combination of the breadth and depth of our program, the outcomes, as well as the relatively easy way to contract and bring us into the organization. That's resonating among our customer base quite a bit. There's diversity of the pipeline in that regard. I think it's probably worth mentioning, too, as well, that we're also seeing a greater channel diversification also.

Speaker #5: So we're feeling good about how that sets us up for 2027.

Speaker #2: And look, Ryan, I would just add yeah. Just one last comment there. Per some of the prepared remarks, we did see our diabetes and hypertension books being the two fastest-growing books on a year-over-year basis in the second quarter.

Always within the top 5, dominating a number of those positions and so it's always top of mind. Then you overlay obviously, um, the the, the demand in the pool around glp owns, uh, it's just amplifying, uh, the front of Mind conversation around cardio metabolic and we have the benefit of actually being able to play in both, those spaces in the sense that we've got a full Suite of cardiometabolic options across, uh, you know, diabetes, prevention, hypertension, uh, diabetes management, of course. Most recently, we announced our cholesterol program, which is doing quite well in the marketplace, uh, and then the full suite and complement of glp1 care. Programs with the most recent launch and announcement of our prescribing program, to complement our, our wraparound support service, and we really tailored a number of those solutions to meet. The number of different needs are out there in the glp1 marketplace. So when you step back into the into the marketplace and you take a look and employers, take a look at, okay, how do I address?

Speaker #2: Both over 50%. This is really important to us. There are some of our highest-priced products. These numbers stay in program the longest. They have the longest duration.

Speaker #2: So GLPs have really been acting as that initial conversation that we've been able to go back and then sell across the entire product suite, which has been very beneficial for us economically.

Speaker #3: I appreciate that important call out there, Steven. And maybe as a follow-up for you. So obviously, things going extremely well in the business, we can see it in the numbers.

Those top areas of concern. Uh what they usually find is is the the deepest and broadest cardiometabolic offering in solution out there uh is front and center with Alma that in combination with our Channel penetration um in diversification across the top 3 pbms and dozens and dozens of Health Plans, makes it easy for omada to uh to be installed. So it's a combination of the breadth and depth of our program the outcomes, as well as the, uh, relatively, uh,

Speaker #3: Can you just help unpack the guidance assumptions a little bit for the back half of the year? I think if as we were looking through sort of to guide, if you essentially are just flat on revenues from Q2 into third quarter and fourth quarter, you actually come in at sort of the high end of the range.

Wei-Li Shao: There's diversity of the pipeline in that regard. I think it's probably worth mentioning, too, as well, that we're also seeing a greater channel diversification also.

Wei-Li Shao: We've been working quite diligently over the last few years

An easy way to contract and bring us into the organization. And so that's resonating among our customer base, uh, quite a bit. Um, so, um, you know, there's diversity, um, of the pipeline in that regard. Um, I think it's probably worth mentioning to as well that we're also seeing a greater Channel diversification also.

Wei-Li Shao: We brought in CVS, Optum Rx, the full complement of our cardiometabolic programs, as well as our GLP-1 programs. Most recently, as we announced in our earnings press release, the expansion with HCSC. Channel diversification also has been important, and that's a lead indicator for revenue diversification. All of that is materializing in our pipeline that we're going to be converting in H2. We're feeling good about how that sets us up for 2027.

Speaker #3: And so is there anything you would call out there? Or is there member counts where they start to decline in the back half? It just want to understand sort of what's built into the guide for the top line here.

Speaker #3: Thanks.

Speaker #2: Yeah. No. Absolutely happy to provide some color there. And Q2 is obviously a fantastic quarter for us. Per some of the prepared remarks and what Wei-Li said this, we expect 2026 to be a more normalized year for us.

Steven Cook: Look, Ryan, I would just add.

Steven Cook: Appreciate that.

Indicator for Revenue diversification. In all of that is materializing uh in our pipeline that we're going to be converting in H2. So we're feeling good about how that sets us up for 2027.

Speaker #2: Our typical pattern is to spend H2 building up new pipeline, closing new employer clients. And then we launch in the first half of the next year, which is what you saw transpire in the first half of 2026.

Steven Cook: Just one last comment there. Per some of the prepared remarks, we did see our diabetes and hypertension books being the two fastest growing books on a year-over-year basis in Q2, both over 50%. This is really important to us. These are some of our highest priced products. These members stay in program the longest. They have the longest duration. For GLPs, have really been acting as that initial conversation that we'll be able to go back and then sell across the entire product suite, which has been very beneficial for us economically.

Speaker #2: We had a really strong selling season in the back half of '25. And then we had north of 40% member growth in Q1 and Q2.

Speaker #2: And this year as well as north of 40% revenue growth in both quarters as well. And so it is important to note that we are comping off what was a very strong 2025 revenue growth last year was 54% in the back half.

Ryan MacDonald: I appreciate that important call out there, Steve. Maybe as a follow-up for you, obviously things going extremely well in the business. We can see it in the numbers. Can you just help unpack the guidance assumptions a little bit for the H2 of the year? I think as we were looking through to get for the top line guide, if you essentially are just flat on revenues from Q2 into Q3 and Q4, you actually come in at the high end of the range. Is there anything you would call out there or is there member counts where they start to decline in the H2? Just want to understand what's built into the guide for the top line here. Thanks.

Speaker #2: We were ramping into one of our largest channel partners across several lines of business during that period. And so 2026 represents a more normal cadence for us from a seasonality perspective.

And look Ryan. I just, yeah, just 1 last comment there. You know, person of the prepared remarks. We did see our diabetes and hypertension books being the 2 fastest growing books on a, on a, on a year-over-year basis. In the second quarter, both over 50%, this is really important to us. There's are some of our highest priced products. These members stay in program. The longest they have the longest duration, so for glps have really been acting as that initial conversation that we be able to go back and then sell the entire product Suite, which has been very beneficial for us economically.

Speaker #3: Thank you very much. One moment for our next question. Our next question comes from the line of Saket Kalia of Barclays. Saket, your line is open.

Speaker #6: Hi. You have Carly on for Saket. Thanks for taking our question here. And congrats to both Sean and Wei-Li. I think one of the important parts of the story here is how the prevalence of chronic conditions in the US creates a meaningful TAM for Omada to go after, particularly given the multi-condition approach.

Steven Cook: Yeah, no, absolutely happy to provide some color there. Q2 is obviously a fantastic quarter for us. Per some of the prepared remarks, Wei-Li said this, we expect 2026 to be a more normalized year for us. Our typical pattern is to spend H2 building up new pipeline, closing new employer clients. Then we launch in the H1 of the next year, which is what you saw transpire in the H1 of 2026. We had a really strong selling season in the H2 of 2025. Then we had north of 40% member growth in Q1 and Q2 in this year, as well as north of 40% revenue growth in both quarters as well. It is important to note that we are comping off what was a very strong 2025 revenue growth. Last year was 54% in the H2.

Speaker #6: As we look into 2026 and beyond now, Omada has an even bigger platform to sell with GLP-1 prescription, FlexCare, and the new cholesterol program.

I appreciate that important call out there. Stephen, and maybe as a follow-up for you. So, obviously things going extremely well in the business. We can see it in the numbers. Can you just help unpack the guidance assumptions a little bit, uh, for the back half of the year? I think if as we were looking through sort of to get, you know, for the for the Topline guide, um, you know, if you essentially are just flat on revenues from 2 Q into third quarter, and fourth quarter, you actually come in at sort of the high end of the range. And so, is there anything, uh, you know, you would call out there or is there, you know, uh, member counts where they, they start to decline in the back half. It just, um, want to understand sort of, uh, you know, what's, what's built into the guide for the top line here? Thanks. Yeah, I know. Absolutely happy to provide some color there. And Q2 is obviously a fantastic quarter for us. For some of the prepared remarks.

Speaker #6: So can you help us understand how these additional solutions are expanding the TAM for Omada and how that could play into the growth formula here at longer term?

Speaker #4: Yeah. This is Sean. I mean, one of the things that we're so excited about is how really early the markets are here, not just for Omada, but for the next class of digital health companies.

Speaker #4: I mean, if you look at our progress as of the end of last year, roughly 8% of the ASO market, 10% of the full insured market, around 1% of MA.

Speaker #4: So plenty of white space. And the expansions that we've announced as we've shared before are really customer-driven. And what's happening is as the existing traditional healthcare system every year just disappoints patients, disappoints clients who are paying for it.

Steven Cook: We were ramping into one of our largest channel partners across several lines of business during that period. 2026 represents a more normal cadence for us from a seasonality perspective.

Parks in my wheelie said this, uh, you know, we expect 2026 to be a more normalized year for us. You know, our typical pattern is to spend H2 building up new pipeline, closing, new employer clients, and then we launched in the, the first half of the next year, which is what you saw, transpire in the first half of 2026. We had a really strong selling season in the back half of the 25% member growth in q1 and Q2, and this year, as well as north of 40%, uh, Revenue growth in both coders as well. And so, it is important to note that we are comping off what was a very strong 2025 Revenue growth. Last year was 54% in the back half, we were ramping into 1 of our largest channel Partners across several lines of business during that period. And so 2026, represents a more normal, uh, normal Cadence for us from a seasonality perspective.

Speaker #4: They're asking for change. I mean, it changes what we've created in the form of between-visit care that leverages technology, efficient care services, unique experiences.

Operator: Thank you very much. One moment for our next question. Our next question comes from the line of Saket Kalia of Barclays. Saket, your line is open.

Thank you very much. 1 moment for our next question.

Speaker #4: And so that's led to the expansions. And as I shared on the first earnings call this year, I mean, we have launched more new program capabilities in market this year.

[Analyst] (Barclays): Hi, you have Kalya on for Saket. Thanks for taking our question here, and congrats to both Sean and Wei-Li. I think one of the important parts of the story here is how the prevalence of chronic conditions in the US creates a meaningful TAM for Omada to go after, particularly given the multi-condition approach. As we look into 2026 and beyond now, Omada has an even bigger platform to sell with GLP-1 prescription, GLP-1 Flex Care, and the new cholesterol program. Can you help us understand how these additional solutions are expanding the TAM for Omada and how that could play into the growth formula here longer term?

Our next question comes from the line of sakat. Kalia of Berkeley sakat. Your line is open.

Speaker #4: Than ever in Omada's history. And we're blessed with the most robust channel landscape and selling landscape we've ever had in Omada's history. And so all sites are, of course, on laying the foundations to capitalize that.

Congrats to both Sean and Ley.

One of the important parts of the story—here is how the prevalence of chronic conditions in the US creates a meaningful tangent for us to talk about it, particularly given the multi-condition approach.

Speaker #4: Not only in the back half of this year, but over the course of the next year.

Speaker #6: Awesome. Thanks so much.

Speaker #3: Thank you. One moment for our next question. Our next question comes from the line of Richard Close of Concordia Genuity. Richard, your line is open.

Sean Duffy: Yeah, this is Sean. One of the things that we're so excited about is how really early the markets are here, not just for Omada, but for the next class of digital health companies. If you look at our progress as of the end of last year, roughly 8% of the ASO market, 10% of the fully insured market, around 1% MA. Plenty of white space. The expansions that we've announced, as we've shared before, are really customer driven. What's happening is as the existing traditional healthcare system every year just disappoints patients, disappoints clients who are paying for it, they're asking for change. The change is what we've created, in the form of between visit care that leverages technology, efficient care services, unique experiences. That's led to the expansions.

Speaker #5: Yes. Thanks for the questions. As Sean, congratulations. Wei-Li, congratulations as well. Sean, I hope we see you around in the future.

Speaker #3: We can't get rid of you, Richard.

Speaker #5: I appreciate the comments. On the enrollments and seasonality, just thinking about it a little more last year, you had some pretty big jumps quarter to quarter.

If you look into 2026 and Beyond. Now, omada hasn't even bigger platform to sell with glp1 prescription Flex care, in the new cholesterol program. So, can you help us understand how these additional Solutions are expanding The Tam from a and how that could play into the growth formula here at longer term? Yeah, this is this is Sean. I mean, 1 of the 1 of the things that we're so excited about is how really early the markets are, you know, here not just for Ramada but for the next class of digital Health companies, I mean if you look at our progress as of the end of last year, you know, roughly 8% of the ASO Market. 10% of the fully insured Market, you know, around 1% Mas. So, um, plenty of white space, uh, and and, um, the expansions that we've, um, you know, announced as we've shared before are really customer-driven

Speaker #5: And obviously, it sounds like you're not going to have as maybe as pronounced jumps here this year. And then with diabetes and hypertension, programs growing the fastest.

Speaker #5: I'm just curious, is this any indication on the GLP-1 front that employers are maybe saying, "Hey, we're not going to cover these for weight loss and let employees go direct to consumer"?

Sean Duffy: As I shared on our first earnings call this year, we have launched more new program capabilities in market this year than ever in Omada's history, and we're blessed with the most robust channel landscape and selling landscape we've ever had in Omada's history. All sights are of course on laying the foundations to capitalize that, not only in the H2 of this year, but over the course of next year.

Speaker #5: So maybe the GLP-1 suite for you guys is taking a little bit of a breather in terms of compared to last year in terms of growth.

[Analyst] (Barclays): Awesome. Thanks so much.

And what's happening is as the existing traditional Health Care System. You know, every year just disappoints patients, just disappoints clients, who are paying for it? They're asking for change. Um, and it changes what we've created uh, in the form of between visit care, that leverages technology efficient care services, unique experiences. And so that's that's led to the expansions. And, you know, as I shared on the uh or first earnings call this year, I mean we we have launched more new program capabilities in Market this year, um, than ever in a modest history and we're blessed with the most robust Channel, landscape, and selling landscape, we've ever had, uh, in our modus history. And so, you know, all sites are, of course, on, uh, laying the foundations to capitalize that. Not only in the back after this year, but over the course of the next year,

Speaker #2: Yeah. Hi, Richard. This is Wei-Li. Let me address that from a market standpoint and what we're hearing. I mean, look, we're in the middle of the time period during the year where employers are evaluating what they're going to cover and what they're not going to cover.

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

Awesome. Thanks so much.

Thank you. 1 moment for our next question.

Richard Close: Yes. Thanks for the questions. Sean, congratulations. Wei-Li, congratulations as well. Sean, I hope we see you around in the future.

Our next question comes from the line of Richard close of Concordia, genuity, Richard? Your line is open.

Speaker #2: I think it's probably intuitive and safe to assume that there are a number of employers that are considering expanding coverage for GLP-1s for weight loss and some that are walking away.

Sean Duffy: Thank you very much, Richard.

Richard Close: Appreciate the comments on the enrollments and seasonality. Just thinking about it a little more, last year you had some pretty big jumps quarter to quarter. Obviously sounds like you're not going to have as pronounced jumps here this year. Then with diabetes and hypertension programs growing the fastest, I'm just curious, is this any indication on the GLP-1 front that employers are maybe saying, "Hey, we're not going to cover these for weight loss," and let employees go direct to consumer? Maybe the GLP-1 suite for you guys has taken a little bit of a breather compared to last year in terms of growth?

Uh, yes. Thanks for the questions, Sean. Congratulations. Wei-Li, congratulations as well. Um, Sean, I hope we see you around in the future.

Speaker #2: We see the headlines in things like that on both sides of those coverage decisions. So across our book of business, we're seeing both those situations occurring.

Speaker #2: But it's hard to predict. And probably not the right thing to do because everybody is just making their decisions right now. So we'll have to see where that falls by the end of the year.

Speaker #2: What I will say is the most important for folks to remember is that whether you are an employer, that is currently covering GLP-1s or will coming the 2027 year, we have a host of prescribing plus wraparound GLP-1 support, lifestyle services.

About it a little more last year. You had some pretty big jumps quarter to quarter. Um and you know, obviously sounds like you're not going to have as maybe as pronounced jumps, uh, here this year and then with diabetes and hypertension.

Speaker #2: That can increase the outcomes in ROI of that particular investment. So we feel very, very well positioned from a product-market fit there, especially because of the channel penetration and diversification we have with the PBM as well as the health plan level covering those benefits.

Uh, programs growing the fastest, I'm just curious. Is this any indication um, on the glp1 front that, you know, employers or maybe saying, hey, we're not going to cover these uh for weight loss. And you know, let employees go direct to consumer.

Wei-Li Shao: Yeah. Hi, Richard. This is Wei-Li. Let me address that from a market standpoint and what we're hearing. Look, we're in the middle of the time period during the year where employers are evaluating what they're going to cover and what they're not going to cover. I think it's probably intuitive and safe to assume that there are a number of employers that are considering expanding coverage for GLP-1s for weight loss and some that are walking away. We see the headlines, and things like that, on both sides of those coverage decisions. Across our book of business, we're seeing both those situations occurring. It's hard to predict and probably not the right thing to do because everybody's just making their decisions right now, so we'll have to see where that falls by the end of the year.

so, maybe the glp, uh, glp 1 suite for you guys is taking a little bit of a breather in terms of last compared to last year, in terms of growth,

Speaker #2: On the other side, for those employers that are maintaining a non-GLP-1 coverage situation going into next year for weight loss or stopping their coverage, it's easy to erroneously think that maybe we don't have opportunity there.

Yeah, hi, Richard. This is wayley. Let me, let me address that from a, a market standpoint. And and what we're hearing. I mean, look, we're we're in the middle of, um,

Speaker #2: And nothing could be further from the truth. And that's really in two ways. The first one is that with the launch of our GLP-1 FlexCare program as well as our partnership with the Lilly employer enterprise connect program, we have the ability to appeal to the employers who oftentimes care about providing good clinical support, that clinical layer.

A, you know, the the time period during the year where employers are evaluating, what they're going to cover, and what they're not going to cover. I think it's uh probably uh, intuitive and safe to assume that there are a number of employers, uh, that are considering, uh, expanding coverage for glp ones for weight loss and some that are walking away. Uh, we see the headlines, um, in in things like that on, on both sides of, of those coverage decisions. So we across our book of business, uh, we're seeing both those situations, uh, occurring,

Speaker #2: Regardless of whether or not their covering for GLP-1s, knowing that their employees are going direct to consumer or other direct channels and doing cash pay.

Wei-Li Shao: What I will say is the most important for folks to remember is that, whether you are an employer that is currently covering GLP-1s or will coming the 2027 year, we have a host of prescribing plus wraparound GLP-1 support lifestyle services that can increase the outcomes and ROI of that particular investment. We feel very well-positioned from a product market fit there, especially because of the channel penetration and diversification we have at the PBM as well as the health plan level, covering those benefits. On the other side, for those employers that are maintaining a non-GLP-1 coverage situation going into next year for weight loss or stopping their coverage, it's easy to erroneously think that maybe we don't have opportunity there, and nothing could be further from the truth. That's really in two ways.

Speaker #2: And we're seeing quite a bit of interest in that particular area. Because there's an opportunity by supporting them clinically, the employer supporting them with a clinical layer like Omada, that they can actually still get ROI from their employees choosing to pay cash out of pocket through direct channels for GLP-1s.

Um but it's hard to predict and and probably not the right thing to do because everybody's just making their decisions right now. So we'll have to see where that that falls by the end of the year.

Speaker #2: So we're really in this situation. Omada is where we've got product-market fit in either situation. So we feel like we're hedged from an opportunity standpoint.

Speaker #2: And that feels right also. The second thing that is worthy to note for those employers that have decided not to cover GLP-1s is they are still experiencing high levels of healthcare resource utilization in cardiometabolic in general.

Speaker #2: And so we remind them, of course, that we have a whole host of cardiometabolic programs that Richard, you're familiar with, that oftentimes they're considering in those cases because their employees still need support regardless of their coverage decision on GLP-1s.

Wei-Li Shao: The first one is that with the launch of our GLP-1 Flex Care program, as well as our partnership with the Lilly Employer Connect program, we have the ability to appeal to the employers who oftentimes care about providing good clinical support, that clinical layer, regardless of whether or not they're covering for GLP-1s, knowing that their employees are going direct to consumer or other direct channels and doing cash pay. We're seeing quite a bit of interest in that particular area because there's an opportunity by supporting them clinically, the employer supporting them with a clinical layer like Omada, that they can actually still get ROI from their employees choosing to pay cash out of pocket through direct channels for GLP-1s.

What I will say um, is is the most important for folks to remember is that, you know, whether you are an employer that is currently covering goons or will coming the 2027 year. We have a host to prescribing plus wraparound glp1, support lifestyle, uh, Services, um, that can, um, increase the outcomes in Roi of that particular investment. So we feel very, very well positioned from a product Market fit there especially because of the channel. Um, penetration inversion we have at the PBM as well as the health plan level, uh, covering those benefits on the other side for those employers that are maintaining a non-GMO, uh, situation going into next year for weight loss or stopping their coverage. You know, it's easy to erroneously think that maybe we don't have opportunity there, um, and nothing could be further from the truth. And and that's really in in in 2 ways. Uh, the first 1 is that, you know, with the launch of our glp1 Flex

Speaker #5: Okay. Thanks. And maybe as a follow-up, I'm curious in terms of new program opportunities, you've obviously rolled out the prescribing pretty quickly and then cholesterol and you're integrating AI.

Speaker #5: I'm just curious in terms of new product or new program roadmap and is it more internal development or M&A like we saw with another company earlier this week?

CARE program, as well as our partnership with the Lilly Employer Enterprise Connect program, we have the ability to appeal to the employers who oftentimes care about providing good clinical support—uh, that clinical layer—regardless of whether or not they're covering for GLP-1s, knowing that their employees are going directly.

Speaker #4: Yeah. Richard, so we've shared before in this is consistent, but we'll share today. We love our platform. We think it's resonating with the market.

Wei-Li Shao: We're really in this situation, Omada is, where we've got product market fit in either situation, so we feel like we're hedged from an opportunity standpoint, and that feels right also. The second thing that is worthy to note for those employers that have decided not to cover GLP-1s is they are still experiencing high levels of healthcare resource utilization in cardiometabolic in general. We remind them, of course, that we have a whole host of cardiometabolic programs that, Richard, you're familiar with, that oftentimes they're considering those cases because their employees still need support regardless of their coverage decision on GLP-1s.

Speaker #4: Every year, as part of our consultations with accounts, we ask them where should we go next? And every year they have ideas for us.

Speaker #4: Now, whether we seize those ideas or stay consistent, it's kind of our choice. But critically, the way we've built the technology, the infrastructure, the operations of Omada, as evidenced by our success, it evidenced by the success beyond prevention in a way that Steve highlighted in diabetes and hypertension, etc., we have the capabilities to go multi-product.

Speaker #4: So I think in the long arc of our journey here, we'll continue to keep an open mind. Listen to our customers and take it from there.

Speaker #4: But we're addressing, as it stands, enormous populations at a critical moment of need for the market.

Speaker #5: Thank you. Congrats.

To consumer or other direct channels and doing cash pay and we're seeing quite a bit of interest in that particular area because there's an opportunity by supporting them clinically employer supporting them with a clinical layer like Alma um that they can actually still get Roi from their employees choosing to pay cash out of pocket through direct channels for glp ones. So we're really in this situation omada is where we've got product Market fit in either situation. So we feel like we're hedged uh from an opportunity standpoint and and that feels uh that feels right? Also, the second thing uh that is worthy to note for those employers that have decided not to cover glp ones is they are still experiencing um you know, high levels of healthcare resource, utilization in cardio, metabolic in general. And so we remind them of course that we have a whole host of a cardio. Metabolic programs that Richard. You're familiar with that oftentimes. They're considering those cases because their employees still need support regarding

Speaker #2: Thanks, Richard. Maybe I'd just tag on to that. You asked a little bit about our roadmap. And what I would say is what we can expect is continued investment in AI and scaling that into our application experience and making sure that that is enabling a human-centered empathetic experience.

Richard Close: Okay, thanks. Maybe as a follow-up, I'm curious in terms of new program opportunities, you've obviously rolled out the prescribing pretty quickly and then cholesterol, and you're integrating AI. I'm just curious in terms of new product or new program roadmap and is it more internal development or M&A, like we saw with another company earlier this week?

Regardless of their coverage decision on glp ones.

Okay. Thanks and maybe as a follow-up. Um,

Speaker #2: We're going to continue to move on that and expand on what we're doing with Omada Spark as well as AI in the application. The second thing is it relates to the GLP-1 landscape.

You know, I'm—I'm curious in terms of new program opportunities. You've obviously rolled out the prescribing pretty quickly, and then cholesterol, um, you know, and you're integrating AI. I'm just curious in terms of new product or new program roadmap. And, you know, do you—is it more internal de—

Speaker #2: I mean, look, things have definitely not settled. It's still dynamic out there. I think we all know that. In rest assured, our customers, as well as others on this call, can be assured that we'll continue to invest and innovating our GLP-1 offerings as the needs arise.

Sean Duffy: Yeah, Richard, we've shared before. This is consistent with what we'll share today, we love our platform. We think it's resonating with the market. Every year as part of our consultations with accounts, we ask them, "Where should we go next?" Every year they have ideas for us. Now, whether we seize those ideas or stay consistent is kind of our choice. Critically, the way we've built the technology, the infrastructure, the operations of Omada, as evidenced by our success, and evidenced by the success beyond prevention in a way that Steve highlighted in diabetes and hypertension, et cetera, we have the capabilities to go multi-product. I think in the long arc of our journey here, we'll continue to keep an open mind, listen to our customers and take it from there.

Development or m&a, um, like we saw with another company earlier this week.

Speaker #5: All right. Thank you very much.

Speaker #1: Thank you. One moment for our next question. Our next question comes from the line of Sean Dodge, a BMO capital markets. Sean, your line is open.

Speaker #6: Hi. This is Chris Charlton on for Sean here. Thanks for taking our questions and congrats to both Wei-Li and Sean. Can you maybe walk us through some of the dynamics with the updated EBITDA guidance?

Sean Duffy: We're addressing, as it stands, enormous populations at a critical moment of need for the market.

Speaker #6: The margin for the quarter was around 12%, but the midpoints of guidance would apply around a 7% margin for back half of the year.

Richard Close: Thank you. Congrats.

Choice. But critically the way we've built the technology, the infrastructure, the operations of a as evidenced by our success, uh, and evidenced by the success Beyond prevention in a way that's deep highlighted in diabetes and hypertension, Etc. Um, we have the capabilities to go multi-product. So um you know I think in the long Arc of our journey here, we'll continue to keep an open mind um listen to our customers and uh you know, and take it from there but uh we're addressing as it stands enormous populations at a critical moment of need for the market.

Wei-Li Shao: Thanks. Richard, maybe I just tag on to that. You asked a little bit about our roadmap. What I would say is, what we can expect is continued investment in AI and scaling that into our application experience and making sure that is enabling a human-centered, empathetic experience. We're going to continue to move on that, and expand on what we're doing with OmadaSpark, as well as AI in the application. The second thing as it relates to the GLP-1 landscape, look, things have definitely not settled. It's still dynamic out there. I think we all know that. Rest assured, our customers, as well as others on this call, can be assured that we'll continue to invest in innovating our GLP-1 offerings, as the needs arise.

Thank you, congrats.

Speaker #6: Some moderation there. And I appreciate the color on the seasonality on the revenue line with how that plays out with member enrollment being strongest start of the year.

Speaker #6: But is there any EBITDA seasonality we should be considering, whether in terms of investing to support in advance of member enrollment at the start of the year or does this kind of relate to other dynamics, whether it be a moderation in gross margin or additional AI or marketing investments things?

Speaker #6: No, you're spot on. There's kind of two main things happening. So as we kind of laid out on our Q1 call, we had a lot of investments that we wanted to front-load at the beginning of this year, namely in Q1.

Speaker #6: So we hired roughly 50 people across the first quarter, across go-to-market, across R&D. And those folks generally started with a mid-quarter convention the first quarter.

Richard Close: All right. Thank you very much.

Thanks, uh, in Richard. Maybe I, I just tag on to that, um, you know, you asked a little bit about our road map. Um, and and what I would say is, um, what we can expect is continued investment in, uh, Ai and scaling that into our application experience and making sure that, uh, that is enabling a human centered empathetic experience. Uh, we're going to continue to move on that, um, and expand on what we're doing with a lot of spark as well as Ai and the application. Um, the second thing is it relates to the glp1, uh, landscape. I mean, look, you know, things have definitely not settled. It's still Dynamic out there. Uh, I think we all know that, uh, in rest assured, our customers, as well as others on this call. Uh, can be assured that we'll continue to invest in innovating our glp1 offerings uh as as the needs arise.

Speaker #6: Now they're annualizing at full run rate Q2 through the rest of the year. We'll do a little bit of incremental hiring through the back half of the year, but you can expect OpEx to roughly hold flat, if not tick up slightly.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Sean Dodge of BMO Capital Markets. Sean, your line is open.

All right. Thank you very much.

Thank you. 1 moment for our next question.

Speaker #6: In H2. And then per some of the seasonality comments with revenue, we do have that implied stepping down slightly, which is where you're getting to a slight step back in overall EBITDA margin.

Chris Charlton: Hi. This is Chris Charlton on for Sean here. Thanks for taking our questions. Congrats to both Wei-Li and Sean. Can you maybe walk us through some of the dynamics with the updated EBITDA guidance? Your margin for the quarter was around 12%, but the midpoints of guidance would apply around a 7% margin for H2, some moderation there. I appreciate the color on the seasonality on the revenue line with how that plays out with member enrollment being strongest to start the year. Is there any EBITDA seasonality we should be considering, whether in terms of investing to support in advance of member enrollment at the start of the year, or does this kind of relate to other dynamics, whether it be a moderation in gross margin or additional AI or marketing investments? Thanks.

Our next question comes from the line of Shaun Dodge a BMO Capital markets, showing your line is open.

Speaker #6: But overall, this is expected. This is part of our normal business cadence, and we're really working to set ourselves up for a strong start to 2027.

Speaker #6: And drive ROI on those investments. Great. That's super helpful. And then on the cholesterol program, with that now being deployed, is there anything else you can share on the pricing for that and how that compares to other offerings and any more detail on how the demand for that is kind of shaping up next?

Hi, this is Chris Charlton on for Sean here. Thanks for taking our questions, and congrats to both Wei-Li and Sean. Can you maybe walk us through some of the dynamics with the updated guidance? Even the margin for the quarter was around 12%, but the midpoints of guidance would apply.

Around a 7% margin for back, half of the year of some moderation there, and I appreciate the caller, on the seasonality, on the revenue line with how, how that plays out with member enrollment being.

Speaker #2: Yeah. Hi. This is Wei-Li. In terms of the pricing and kind of for cholesterol, it's a creative goer revenue in gross margin. We've long said, "Hey, listen, if you want to earmark a range for our programs, between 50, 60 dollars on the low end to 90 dollars on the high end, cholesterol sits well within that range." Probably more similar to our prevention product.

Steven Cook: No, you're spot on. There's kind of two main things happening. As we laid out on our Q1 call, we had a lot of investments that we wanted to front-load at the beginning of this year, namely in Q1. We hired roughly 50 people across the Q1, across go-to-market, across R&D. Those folks generally started with a mid-quarter convention the Q1. Now they're annualizing at full run rate through Q2, through the rest of the year. We'll do a little bit of incremental hiring through the H2, but you can expect OpEx to roughly hold flat, if not tick up slightly in H2. Per some of the seasonality comments with revenue, we do have that implied stepping down slightly, which is where you're getting to a slight step back in overall EBITDA margin. Overall, this is expected.

Speaker #2: And so that's kind of how it's positioned. I think the most important thing to consider about cholesterol in terms of the opportunity I mean, there's the price and the ARPU of it, but then there's the demand and the volume side of it.

Speaker #2: If you step back and take a look at the cardiometabolic profile of a lot of people, oftentimes, cholesterol is one of those things that is quite silent.

Strongest historic of the year. But is there any evidence seasonality we should be considering whether in terms of investing, uh, to support in advance of member enrollment at the start of the year, or does this kind of relate to other Dynamics, whether it be a moderation, and gross margin or an additional AI or marketing Investments. Thanks know your spot on. Uh, there's kind of 2 main things happening. So, you know, as we kind of laid out on our our q1 call, uh, we had a lot of Investments that we want the front load at the beginning of this year, namely in q1, so we hired roughly 50, people across the first quarter across, go to market across R&D, um, and those, those folks generally started with a mid-quarter convention, the first quarter, now they're annualizing at full run rate, Q2 through the rest of the year. We'll do a little bit of

Speaker #2: And is undertreated kind of at the primary care level. And so there's a huge opportunity there as we work with people with diabetes and hypertension.

Speaker #2: Then to obviously upsell or cross-sell into the cholesterol program and just take a more holistic care approach thereby improving their outcomes. So the cholesterol program is as much about selling more in terms of more products into our client bases as it is to synergize with the rest of the cardiometabolic products we have thereby confirming more total ROI for that particular patient profile for a company.

Steven Cook: This is part of our normal business cadence, and we're really working to set ourselves up for a strong start to 2027 and derive ROI on those investments.

Chris Charlton: Great. That's super helpful. On the cholesterol program, with that now being deployed, is there anything else you can share on the pricing for that and how that compares to other offerings? Any more detail on how the demand for that's shaping up? Thanks.

Incremental hiring through the back half of the year but you can expect Opex to roughly hold flat if not tick up slightly in H2 and then P some of the seasonality comments with Revenue. We do have that implied stepping down slightly, which is where you're getting to a slight step back and overall ibido margin. Uh, but overall, this is expected. This is part of our normal business, Cadence. We're really working to set ourselves up for a strong start to, to 2027 and drive Roi on those Investments.

Wei-Li Shao: Yeah. Hi, this is Wei-Li. In terms of the pricing and kind of for cholesterol, it's accretive to our revenue and gross margin. We've long said, Hey, listen, if you want to earmark a range for our programs between $50, $60 on the low end to $90 on the high end, cholesterol sits well within that range. Probably more similar to our prevention product. That's kind of how it's positioned. I think the most important thing to consider about cholesterol in terms of the opportunity, there's the price and the ARPU of it, there's the demand and the volume side of it. If you step back and take a look at the cardiometabolic profile of a lot of people, oftentimes, cholesterol is one of those things that is quite silent, and is undertreated kind of at the primary care level.

Right, that's super helpful. And then on the cholesterol program with that now being deployed, is there anything else you can share on the pricing for that and how that compares to other offerings and any more details on how the demand for that kind of shaping up, thanks.

Speaker #6: Okay. Great. Thanks again. And congrats on the quarter.

Speaker #1: Thank you very much. One moment for our next question. Our next question comes from the line of David Larsen of BTIG. David, your line is open.

Speaker #7: Hi. Congratulations on the good quarter. Can you maybe talk a little bit more about your relationships with the big PBMs? And also, what portion of your members now would you consider to be GLP-1 members?

Speaker #7: I think it's something like less than 20% of total, which I view as good because there's plenty of incel opportunity. And then with respect to the PBM relationships, can you touch on the reporting back to the self-insured employer-client?

Yeah, hi. This is whey in terms of the, um, uh, pricing and kind of, uh, for cholesterol. Um, you know, it's a creative door, revenue and gross margin. Uh, We've long said, Hey listen, if you want to hear Mark arranged for our programs between, you know 50 60 dollars on the low end to the 90 dollars on the high end, uh, cholesterol sits, well within that range, uh, probably more similar to our, our prevention product. And uh, and so, um, that's kind of how it's positioned. I think the most important thing to, to consider about cholesterol in terms of the opportunity, I mean there's the price and the rpu of it. But then there's the demand and the volume side of it. Um, if you step back and take a look at the cardiometabolic profile of a lot of people, um, oftentimes, you know, cholesterol is 1 of those things that is um, you know, quite silent.

Speaker #7: Can they see who's using the program, how much weight each member has lost, the impact of total claims trend, and so forth? Thanks very much.

Wei-Li Shao: There's a huge opportunity there as we work with people with diabetes and hypertension, then to obviously upsell or cross-sell into the cholesterol program and just take a more holistic care approach, thereby improving their outcomes. The cholesterol program is as much about selling more in terms of more products into our client bases as it is to synergize with the rest of the cardiometabolic products we have, thereby confirming more total ROI for that particular patient profile for a company.

Speaker #2: Yeah, sure. This is Wei-Li. Let me comment on kind of the relationships with the large PBMs and kind of the reporting details. So on and so forth.

Speaker #2: And I'll kick it on over to Steve to talk about kind of the percent of revenue of the GLP-1s and so on and so forth contribution there.

Speaker #2: In general, our relationships with our PBMs are similar to the relationships that we have when in health plans insofar as we contract with them.

Total Roi for that particular patient profile for a company.

Chris Charlton: Okay, great. Thanks again, and congrats on the quarter.

Speaker #2: For provider services, in this particular case, across the three PBMs, all of our cardiometabolic programs like diabetes, diabetes prevention, hypertension, and MSK. Cholesterol, since we launched it earlier this year, is often not in those contracts, but certainly we're seeking to upsell that in.

Okay, great. Thanks again, and congrats on the quarter.

Operator: Thank you very much. One moment for our next question. Our next question comes from the line of David Larsen of BTIG. David, your line is open.

David Larsen: Hi, congratulations on the good quarter. Can you maybe talk a little bit more about your relationships with the big PBMs? What portion of your members now would you consider to be GLP-1 members? I think it's something like less than 20% of total, which I view as good because there's plenty of in-sell opportunity. With respect to the PBM relationships, can you touch on the reporting back to the self-insured employer client? Can they see who's using the program, how much weight each member has lost, the impact of total claims trend, and so forth? Thanks very much.

Thank you very much. 1 moment for our next question. Our next question comes from the line of David Larsen of btig, David. Your line is open,

Speaker #2: And so that's how the contractual nature of it. Now, the actual sales motion, if you were wondering about it, is similar to as we do with health plans.

And a good quarter. Can you maybe talk a little bit more about your relationship relationships with the big pbms.

Speaker #2: So we partner with the account executives at the PBM level. To raise awareness within their client books of business. And then we go to market with them.

Um, and also, what portion of your members now are, would you consider to be gp1 members? I think it's something like less than 20% of total, which I view as good because there's plenty of incel opportunity.

Speaker #2: We create outreach to them. And then we close deals together much like we would in other relationships we have. And then we do the deployments.

Speaker #2: Deployment meaning is that we launch the program with the employers into their employee base, do all the enrollment outreach in most of the cases, and then that's generally how we create membership through those channels.

Wei-Li Shao: Yeah, sure. This is Wei-Li. Let me comment on kind of the relationships with the large PBMs and kind of the reporting details, so on and so forth. I'll kick it on over to Steve to talk about the % of revenue of the GLP-1s and so on and so forth, contribution there. In general, our relationships with our PBMs are similar to the relationships that we have in health plans insofar as we contract with them for provider services. In this particular case, across the three PBMs, all of our cardiometabolic programs, like diabetes prevention, hypertension, MSK, cholesterol, since we launched it earlier this year, is often not in those contracts, but certainly we're seeking to upsell that in. That's how the contractual nature of it.

And then, with respect to the PBM relationships, can you touch on the reporting back to the self-insured employer client? Can they see who's using the program, how much weight each member has lost, the impact on total claims trend, and so forth? Thanks very much.

Speaker #2: As it relates to reporting, the answer is yes to your question. So it doesn't matter whether you have a direct contract with us or you're contracting us through a health plan or any of the big three PBMs.

Yeah, sure this is Wei Li. Let me let me comment. Um, on kind of the relationships with the large pbms and kind of the reporting details uh, uh, so on and so forth. And I'll, I'll kick it on over to Steve to talk about, um, um, you know, kind of the percent of Revenue of the glp ones, and so on and so forth. Contribution there,

Speaker #2: What you can expect from us is a number of reports that characterize for instance, how is the deployment going? What's the penetration? The enrollment rate?

Speaker #2: What are members doing inside the application? How are they engaging with their care teams? And then as the business builds, obviously, the number of employees we're helping grows, and then we naturally begin reporting out on not just utilization engagement, but also outcomes.

Speaker #2: Was their blood glucose controlled? Was their weight controlled? Was their blood pressure controlled? So on and so forth. Such that our customers then can be convinced that we're confirming the value to their employees and to their business that we talked about during the selling process.

Wei-Li Shao: Now, the actual sales motion, if you were wondering about it, is similar to as we do with health plans. We partner with the account executives at the PBM level, to raise awareness within their client books of business. We go to market with them, we create outreach to them, and then we close deals together, much like we would in other relationships we have. We do the deployment. Deployment meaning is that we launch the program with the employers into their employee base, do all the enrollment outreach, in most of the cases, and then that's generally how we create membership through those channels. As it relates to reporting, the answer is yes to your question. It doesn't matter whether you have a direct contract with us or you're contracting us through a health plan or any of the big three PBMs.

Wei-Li Shao: We go to market with them, we create outreach to them, and then we close deals together, much like we would in other relationships we have. We do the deployment. Deployment meaning is that we launch the program with the employers into their employee base, do all the enrollment outreach, in most of the cases, and then that's generally how we create membership through those channels. As it relates to reporting, the answer is yes to your question. It doesn't matter whether you have a direct contract with us or you're contracting us through a health plan or any of the big three PBMs.

Speaker #2: So that's a little bit how we work. With the PBMs and how we report.

Speaker #6: Yeah. And then just add some precision on the GLP-1 mix comment. During our Q4 disclosure of last year, we had 150,000 members on our GLP-1 program against 887,000 total.

Um, in general, um, our relationships with our, our pbms, um, are similar to the relationships that we have when and, and health plans in so far as, uh, we contract with them. Um, you know, for Provider Services, uh, in this particular case across the 33 pbms, all of our cardio metabolic programs, uh, like diabetes, diabetes, prevention, hypertension, uh, and msk, uh, cholesterol since we launched it earlier this year is, is often not in those contracts. But certainly, we're, we're seeking the upsell that in. Um, and so, that's, um, how the, the contractual nature of it. Now, the actual sales motion. If you were wondering about it is similar to it as we do with health plan. So we partner with the account Executives at the PBM level, uh, to raise awareness with in their client books of business. Um, and then we go to market with them. We create Outreach to them, and then we close deals together. Um, much like we would in other relationships, we have. Uh, and then, um, we, we do the deployments,

Speaker #6: That ratio is roughly held constant now that we've gone into Q2. So we continue to see broad-based traction across all of our product set.

Speaker #6: With GLP-1s being a key driver of that growth.

Uh, deployment meeting is that we launched the program with the employers into their employee base, do all the enrollment Outreach uh in most of the cases. Um and um, and then that's generally how we we we create membership through those channels.

Speaker #1: Thank you very much. One moment for our next question. Last question comes from Elizabeth Anderson of Evercore ISI. Elizabeth, your line is open.

Wei-Li Shao: What you can expect from us is a number of reports that characterize, for instance, how is the deployment going? What's the penetration, the enrollment rate? What are members doing inside the application? How are they engaging with their care teams? As the business builds, obviously the number of employees we're helping grows, and then we naturally begin reporting out on not just utilization engagement, but also outcomes. Was their blood glucose controlled? Was their weight controlled? Was their blood pressure controlled? So on and so forth. Such that our customers then can be convinced that we're conferring the value to their employees and to their business that we talked about during the selling process. That's a little bit how we work with the PBMs and how we report.

Speaker #4: Hey, guys. This is Ayush for Elizabeth. Thanks for taking my question. On the HCSC expansion, adding about those one and a half million covered lives across the fully insured book, do those fully insured lives convert to enrolled members at the same rate as self-insured?

Speaker #4: And when do when should we see those lives start enrolling? And then on the retailer cholesterol deployment, is that account new to Omada entirely, or is that an existing multi-condition client adding cholesterol?

Speaker #2: Hi, Ayush. This is Wei-Li. Let me take both those for you. With the HCSC expansion, we've had a longstanding relationship with them. Both in their ASO book and a couple of states for their fully insured book.

Uh, as it relates to reporting, um, the answer is yes to your question. Um, so, um, it doesn't matter whether you have a direct contract with us or you're Contracting us through a health plan or any of the Big 3 pbms, what you can expect from us is a number of reports, uh, that, um, you know, characterize, for instance, um, you know, how is the employment going? What's the penetration, the enrollment rate, what are, uh members doing inside the application? How are they engaging with their care teams? And then, as as as the as the business builds? Obviously, the number of employees were helping growth and then we naturally begin reporting out on not just utilization engagement but also outcomes was their blood glucose controlled was their weight controlled? Was their blood pressure controlled so on and so forth. Such that, you know, our customers then, um, you know, can be convinced that we're confirming. Conferring the value to their employees into their business that we talked about during the selling process. Um, so that's a little bit how we work. Um, you know,

Steven Cook: Yeah, just to add some precision on the GLP-1 mix comment. During our Q4 disclosure of last year, we had 150,000 members on our GLP-1 program against 887,000 total. That ratio has roughly held constant now that we've gone into Q2, we continue to see broad-based traction across all of our product sets, with GLP-1s being a key driver of that growth.

With the PBMs and how we report.

Speaker #2: The 1.5 million or so expansion references an additional three-state expansion within the HCSC book. Your the implication of your question, I would say, is correct in the sense that with the fully insured book of business, the Omada programs in this case prevention and hypertension are fully embedded in the benefit.

Yeah, let me just add some precision on the GLP-1 mix comment. You know, during our Q4 disclosure last year, we had 150,000 members on our GLP-1 program, against 887,000 total. That ratio has roughly held constant now that we've gone into Q2. So we continue to see broad-based traction across all of our product set, with GLP-1 being a key driver of that growth.

Speaker #2: So there's no downstream sales cycle that's required for employers. So it's a faster return in terms of deployment. And so what can we expect?

Operator: Thank you very much. One moment for our next question. Our last question comes from Elizabeth Anderson of Evercore ISI. Elizabeth, your line is open.

Thank you very much. 1 moment for our next question.

Speaker #2: We're working busily with HCSC to set that up and have that deployed. We should see revenue start hitting the books throughout H1 of next year and obviously ongoing from that point in time.

[Analyst] (Evercore ISI): Hey, guys. This is Ayush on for Elizabeth. Thanks for taking my question. On the HCSC expansion, adding about those 1.5 million covered lives across the fully insured book, do those fully insured lives convert to enrolled members at the same rate as self-insured? When should we see those lives start enrolling? On the retailer cholesterol deployment, is that account new to Omada entirely, or is that an existing multi-condition client adding cholesterol?

Our last question comes from Elizabeth Anderson of evercore isi, Elizabeth, your line is open.

Speaker #2: As it relates to cholesterol, cholesterol, we announced that early in the year and then quickly closed that large retailer. We have many other deals in our pipeline for cholesterol.

Speaker #2: Because of the short sales cycle, you might imagine, it was an existing customer indeed that is the case. And we're seeing meaningful enrollments from that already.

Speaker #2: I think what's important from that is that the fast upsell there for a very large client, we think, is a great lead indicator to the product market fit and traction.

Wei-Li Shao: Hi, Ayush. This is Wei-Li. Let me take both those for you. With the HCSC expansion, we've had a long-standing relationship with them, both in their ASO book and a couple of states for their fully insured book. The 1.5 million or so expansion references an additional three-state expansion within the HCSC book. The implication of your question, I would say, is correct in the sense that with the fully insured book of business, the Omada programs, in this case, prevention and hypertension, are fully embedded in the benefit, so there's no downstream sales cycle that's required for employers. It's a faster return in terms of deployment. What can we expect? We're working busily with HCSC to set that up and have that deployed. We should see revenue start hitting the books throughout H1 of next year, and obviously ongoing from that point in time.

Uh, hey guys, this is Sean for Elizabeth. Uh, thanks for taking my question. Um, on the hcsc expansion, um, adding about those, uh, 1 and a half million covered lives across the fully insured book. Um, do those fully insured lives convert to enrolled members at the same rate as a, a self-insured. And, and when do, when do, when should we see those Live? Start in rolling. And then, on the, uh, retailer cholesterol deployment, um, is that account, uh, new to omada entirely or, um, is that an existing multi-conductor?

Speaker #2: And if you were to look into our CRM, you would see inside of our pipeline a number of cholesterol deals, not only for upsells for existing clients, but also new logos.

Speaker #2: So we feel good about the momentum coming into the back half of this year for our closing season and are excited about it for 2027.

Wei-Li Shao: The implication of your question, I would say, is correct in the sense that with the fully insured book of business, the Omada programs, in this case, prevention and hypertension, are fully embedded in the benefit, so there's no downstream sales cycle that's required for employers. It's a faster return in terms of deployment. What can we expect? We're working busily with HCSC to set that up and have that deployed. We should see revenue start hitting the books throughout H1 of next year, and obviously ongoing from that point in time.

Wei-Li Shao: As it relates to cholesterol, we announced that earlier in the year, quickly closed that large retailer. We have many other deals in our pipeline for cholesterol. Because of the short sales cycle, you might imagine it was an existing customer. Indeed, that is the case. We're seeing meaningful enrollments from that already. I think what's important from that is that the fast upsell there for a very large client, we think is a great lead indicator to the product market fit and traction. If you were to look into our CRM, you would see inside of our pipeline, a number of cholesterol deals, not only for upsells for existing clients, but also new logos. We feel good about the momentum coming into H2 of this year for our closing season, and are excited about it for 2027.

The, uh, expansion. Uh, we've had a long-standing relationship with them, uh, both in their ASO book, and a couple of states for their fully insured book, the 1.5 million, or so expansion references. Uh, an additional 3 State expansion within the hcsc book, um, your um, uh, the implication of your question. I would say, is correct in the sense that, um, with the fully insured book of business, the omada programs. In this case, prevention and hypertension are fully embedded in the benefit. So there's no Downstream sales cycle, that's required for employers. So it's a faster return on return, return into terms of deployment. And so, what can we expect? Uh, we're working busily with hcsc to set that up and have that deployed. Uh, we should see, uh, Revenue start hitting the books, uh, throughout H1 of next year, and obviously ongoing from that point in time,

As it relates to cholesterol. Uh, cholesterol. You know, we we announced that um, you know, early in the year and then quickly, uh, you know, closed on that large retailer. We have many other deals in our pipeline for cholesterol, um, because of the short sales cycle, you might imagine it was an existing customer. And indeed that is the, that is the case. Uh, and we're seeing a meaningful enrollments from that already. Uh, I think, what's important from that is, is that, um, you know, um, the the fast upsell there for a very large client, we think is a, is a great lead indicator to the product Market, fit contraction. Uh, and if you were to look into our c,

RM, you would see inside of our pipeline, a number of cholesterol deals. Not only for upsells for existing clients, but also new logos. So we feel good about the momentum coming into the back half of this year for our closing season, on our excited about it from 2027.

Operator: Thank you very much. At this time, I am showing no further questions. This does conclude our program. You may now disconnect.

Thank you very much at this time. I'm showing no further questions.

Just as conclude our program, you may now disconnect

Q2 2026 Omada Health Inc Earnings Call

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