Omada Health Shares Gain Momentum on Strong Preliminary Results and Strategic Shift

Omada Health US68170A1088

Preliminary figures for the 2025 fiscal year indicate Omada Health is finishing with significant momentum. The digital health company is reporting robust revenue growth exceeding 50% and is simultaneously capitalizing on the burgeoning market for new weight-loss pharmaceuticals. This raises the question of whether its model of continuous digital care can underpin the stock's long-term performance.

Market reaction reflects a growing, if cautious, optimism. A particularly striking development is the sharp decline in short interest recorded in January 2026. With short positions plummeting by over 54%, only approximately 2.6% of the company's outstanding shares are now sold short. This suggests many skeptics have closed their positions, indicating the market is increasingly accepting the firm's growth narrative.

Final clarity on the annual figures and operating margin will arrive on March 5, 2026, when Omada Health releases its audited results for both the fourth quarter and the full 2025 fiscal year.

Preliminary Financial and User Metrics

The key preliminary data points for the year are:

• Revenue Surge: Full-year revenue is anticipated to land between $256 million and $258 million, representing growth of 51% to 52%.
• Strong Finish: Fourth-quarter revenue is forecast to reach $72 million to $74 million.
• Member Expansion: The active user base grew by 55% to roughly 886,000 members.

GLP-1 Support Programs Fuel Expansion

A primary engine for this positive performance is the company's focus on companion programs for GLP-1 agonist medications, which are primarily used for weight management. The firm's recent analyses demonstrate that participants in these specialized programs achieved an average weight loss of 16.3%.

A critical finding for healthcare payers is that members maintained nearly all of their weight loss one year after discontinuing the medication, with a regain of only 0.8%. This clinical evidence supports the strategic aim of establishing digital behavioral interventions as an essential complement to pharmaceutical treatment.

Refocused Strategy Takes Hold

Omada is in a phase of strategic optimization, deliberately shifting its focus toward higher-margin partnerships. This includes a greater emphasis on Medicare Advantage plans and chronic condition management programs for diseases like diabetes and hypertension. This strategic pivot is a direct response to evolving insurance reimbursement policies and a changing regulatory landscape.

Concurrently, the company is deepening its investment in artificial intelligence. The integration of AI is designed to enable real-time data processing and to make treatment outcomes more predictable for members. The overarching goal is more efficient resource allocation to keep costs stable for its primary clients—employers and insurance providers.