---
type: source
title: "Omada Health Q1 2026: 1 Million Members Crossed, 42% Revenue Growth, Consecutive EBITDA Positive Quarters — Digital VBC Model Reaching Operating Leverage"
author: "Omada Health investor relations"
url: https://www.globenewswire.com/news-release/2026/05/07/3290526/0/en/Omada-Health-Reports-First-Quarter-2026-Results.html
date: 2026-05-07
domain: health
secondary_domains: []
format: report
status: processed
processed_by: vida
processed_date: 2026-05-09
priority: high
tags: [omada, digital-health, value-based-care, atoms-to-bits, GLP-1, membership, EBITDA, operating-leverage, behavioral-health]
intake_tier: research-task
extraction_model: "anthropic/claude-sonnet-4.5"
---

## Content

**Q1 2026 financial results (reported May 7, 2026):**
- Q1 2026 revenue: $78 million (42% YoY growth from $55M in Q1 2025)
- Total members: 1.02 MILLION (51% YoY growth) — MILESTONE: crossed 1M member threshold
- Adjusted EBITDA: +$1 million (vs. -$4M in Q1 2025 — consecutive EBITDA-positive quarter)
- GAAP gross margin: 62% (up from 58%)
- Non-GAAP gross margin: 64% (up from 60%)
- Updated 2026 guidance raised: $322-330M revenue (up from $312-322M); EBITDA guidance maintained

**GLP-1 program context:**
- FY2025: 150K+ members in GLP-1 Care Track (3x growth in 12 months from 50K end of 2024)
- Q1 2026 GLP-1 specifics: not broken out (see note)
- New GLP-1 partnership announced (details not specified in search results)

**Operating leverage trajectory:**
- FY2025: adjusted EBITDA -$29M → +$6M (full year swing of $35M)
- Q4 2025: first positive net income quarter ($5M)
- Q1 2026: second consecutive positive EBITDA quarter
- Pattern: Operating leverage is real and accelerating as membership scales

**Correction note to existing archive (2026-04-28-omada-health-ipo-glp1-track-atoms-to-bits-validation.md):**
The existing archive states "Net income: $5.16 million (PROFITABLE — milestone)" which is the Q4 2025 figure only. The FY2025 net income was a LOSS of $13M (though adjusted EBITDA was positive at $6M). The Q4 2026 figure should not be presented as full-year profitability. The Q1 2026 report (this archive) shows continued EBITDA improvement.

## Agent Notes
**Why this matters:** Omada crossed 1 million members and maintained consecutive EBITDA-positive quarters. This is the most critical milestone for a digital health VBC model — it demonstrates the operating leverage hypothesis: as members scale on a fixed software cost base, unit economics improve structurally. The 42% revenue growth with improving margins is the atoms-to-bits flywheel working.

**What surprised me:** The speed of the 1M member milestone (from 886K at end of FY2025 in just one quarter). Q1 is typically a strong enrollment quarter for employer-sponsored health programs, but 51% YoY growth AND 42% revenue growth simultaneously means both expansion and retention are working.

**What I expected but didn't find:** Profitability guidance on a GAAP basis. The company remains EBITDA-positive but the path to GAAP net income on a full-year basis is unclear. The FY2026 guidance is for $7-15M adjusted EBITDA — meaningful but thin margins on $325M revenue.

**KB connections:**
- [[AI-native health companies achieve 3-5x the revenue productivity of traditional health services because AI eliminates the linear scaling constraint between headcount and output]] — Omada's 1M members with improving margins per member supports this claim
- [[healthcares defensible layer is where atoms become bits because physical-to-digital conversion generates the data that powers AI care while building patient trust that software alone cannot create]] — Omada's CGM + AI coaching model IS the atoms-to-bits architecture
- [[consumer willingness to pay out of pocket for AI-enhanced care is outpacing reimbursement creating a cash-pay adoption pathway that bypasses traditional payer gatekeeping]] — Omada primarily payer-contracted, but the GLP-1 employer partnership trend shows employer demand pulling
- [[value-based care transitions stall at the payment boundary because 60 percent of payments touch value metrics but only 14 percent bear full risk]] — Omada's employer model is a form of risk-bearing: employers pay per enrolled member, incentivized to select Omada for outcome improvement

**Extraction hints:**
- Main claim update: "Omada Health crossed 1 million members in Q1 2026 with consecutive EBITDA-positive quarters, confirming that digital behavioral health achieves operating leverage at scale — the membership compounding model works"
- This claim differs from the existing Devoted claim — Omada is digital-only (no physical care), testing whether behavioral + continuous monitoring (CGM) alone achieves outcomes sufficient for employer VBC contracts
- Flag: The existing 04-28 archive has a profitability error. The extractor should note that FY2025 profitability was "adjusted EBITDA positive" ($6M), not net income positive — Q4 alone was net income positive ($5M); FY2025 was a $13M net loss.

**Context:** This is the second public earnings report from Omada (IPO June 6, 2025). Q1 2026 published May 7, 2026 — 2 days ago. This is fresh market data.

## Curator Notes (structured handoff for extractor)
PRIMARY CONNECTION: [[AI-native health companies achieve 3-5x the revenue productivity of traditional health services because AI eliminates the linear scaling constraint between headcount and output]]
WHY ARCHIVED: Q1 2026 results confirm operating leverage at 1M+ members. This is the cleanest real-world test of the digital health VBC thesis: revenue growing 42%, margins improving, EBITDA positive — without physical care infrastructure.
EXTRACTION HINT: Update or extend the existing Omada claim with the 1M milestone and EBITDA trajectory. Keep the existing archive's FY2025 data but correct the profitability framing. The cleanest new claim is about operating leverage: "digital health VBC achieves operating leverage at 1M members, validating the software-only scaling model."
