Omada Health 2025 Q2 Earnings Losses Narrow Sharply, 50% Year-Over-Year Reduction in Net Loss

Omada Health (OMDA) reported its fiscal 2025 Q2 earnings on Aug 08th, 2025. The company beat expectations with a 48.9% year-over-year revenue increase and significantly narrowed its net loss. Omada also raised its revenue guidance for the full year, indicating strong momentum in its strategic initiatives and product offerings.

Revenue for Omada Health in the second quarter surged by 48.9% year-over-year to $61.37 million. The majority of this growth came from its Services segment, which accounted for $56.96 million of total revenue. The Hardware segment contributed $4.41 million, rounding out the company’s total revenue for the quarter.

The company reported a significant improvement in its bottom line, with net losses narrowing by 50.3% year-over-year to $-5.31 million in 2025 Q2, down from $-10.69 million in the same period the previous year. On a per-share basis, the loss fell to $0.24 from $1.40, representing an 82.9% reduction. The narrowing of losses reflects strong operational progress and marks a new record for the company’s highest net income in two years.

The stock price of Omada Health declined 4.90% during the latest trading day but showed stronger performance over the short term, with a 9.44% gain for the week and a 12.88% increase month-to-date.

Investors who purchased OMDA following its earnings beat and held for 30 days saw a 35.82% return, though this underperformed the broader market’s 75.56% benchmark return. The strategy’s negative excess return of -39.74% suggests the stock lagged behind the market’s performance. Despite the underperformance, the move was generally in line with market trends.

CEO Sean Duffy expressed confidence in Omada’s strategic execution, citing strong demand for cardiometabolic care and the successful commercialization of GLP-1 Care Track. He also highlighted the integration of AI tools like OmadaSpark to improve member engagement and support. The leadership’s tone remained optimistic, emphasizing continued progress toward profitability and operational efficiency.

For the full fiscal year ending December 31, 2025, Omada expects total revenue in the range of $235 million to $241 million and an Adjusted EBITDA loss between $9 million and $5 million. While the company did not provide a GAAP net loss forecast, it cited the complexity of projecting certain financial items like interest, taxes, and share-based compensation.

No major M&A activity or C-level changes were reported by Omada Health in the three weeks following its earnings release. Additionally, the company has not announced any dividend or share repurchase programs. Investors remain focused on the company’s ability to maintain its revenue growth trajectory and continue narrowing its net losses as it moves toward profitability.