Omada Health

OMDA

$22.19

-0.45%

N/A-$0.10

Healthcare

Medical - Healthcare Information Services

NASDAQ

Active Trading

Omada Health, Inc., together with its subsidiary, Physera, Inc., provides a range of virtual care programs in the United States. The company ...

Fundamental Analysis of OMDA

Key Strengths

Strong liquidity position with no debt and current ratio above 3.8

Proven clinical outcomes with evidence-based programs and recognition from national health authorities

Risk Factors

Extremely high valuation (P/E >350, P/S >4.5) leaves little room for error

Reliance on reimbursements and employer contracts; changes could impact revenue

Profitability

Net Margin1.39%

Operating Margin-0.15%

Valuation

P/E Ratio330.42x

Current Ratio3.91

Efficiency

ROE1.84%

ROA1.31%

Fundamental Analysis of OMDA

Omada Health is a virtual healthcare company specializing in digital chronic disease management programs for cardiometabolic, musculoskeletal, and behavioral health conditions. The company recently IPO'd in June 2025 and operates within the growing digital health sector. Financially, Omada demonstrates a robust balance sheet with a current ratio of 3.91 and a quick ratio of 3.85, indicating strong liquidity and no long-term debt (debt-to-equity of 0%). The company has achieved positive gross margins of 68.2%, reflecting a scalable business model. However, profitability remains nascent; while net margin is 1.4% and EPS is positive, the TTM price-to-earnings ratio of 351x suggests the market is pricing in significant growth expectations. Revenue per share of $5.19 and a price-to-sales ratio of 4.58 indicate a premium valuation. Revenue growth and operational efficiency are supported by a 7.6% operating cash flow margin and a 96.1% free cash flow conversion. The company's focus on evidence-based programs, partnerships with health plans and employers, and investments in R&D (12% of revenue) are key competitive advantages. However, the healthcare sector faces regulatory changes, reimbursement risks, competition from larger players, and the need to maintain member engagement. The low earnings yield (0.3%) and high enterprise value-to-EBITDA (101.7x) highlight aggressive valuation, which poses downside risk if growth slows. Analysts would likely view the stock as a speculative buy for long-term investors, given its market opportunity but early-stage profitability.

Key Strengths of OMDA

Strong liquidity position with no debt and current ratio above 3.8
Proven clinical outcomes with evidence-based programs and recognition from national health authorities
Diversified program portfolio covering diabetes, hypertension, weight, MSK, and behavioral health
High gross margin of 68.2% indicating scalable technology platform
Growing top-line with positive cash flow from operations
Recent IPO provides capital for expansion and product development
Strategic partnerships with employers, health plans, and integrated care systems
Focus on high-cost chronic conditions with strong long-term growth potential

Risk Factors of OMDA

Extremely high valuation (P/E >350, P/S >4.5) leaves little room for error
Reliance on reimbursements and employer contracts; changes could impact revenue
Intense competition from established telehealth players and new entrants
Regulatory uncertainty in digital health and privacy standards
Limited profitability history; net margin only at 1.4% and operating margin negative
Customer concentration risk with key enterprise clients
Potential for slower-than-expected adoption of virtual care services
High beta of 1.72 implies significant share price volatility

Market Cap vs Revenue & Earnings

Earnings

n/a

Revenue

n/a

Market cap

$1.32B

330.4x

P/E Ratio

4.3x

P/S Ratio

Earnings & Revenue

Last Reportedn/a

Earnings per share (EPS)n/a

Gross Margin68.19%

Net Profit Margin1.39%

Debt/Equity Ratio0.00

Profitability Bridge (Current vs YoY)

How gross, operating and net margins shifted versus last year.

Revenue / Net Income / FCF History (USD B)

Growth Signals of OMDA

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Revenue	—	—	—	—	Flat
Diluted EPS	—	—	—	—	Flat
Free Cash Flow	—	—	—	—	Flat

Profitability of OMDA

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Net Margin	—	6.03%	—	—	Flat
Operating Margin	—	4.04%	—	—	Flat
ROE	—	—	—	—	Flat

Financial Health of OMDA

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Current Ratio	—	3.907	—	—	Flat
Quick Ratio	—	3.852	—	—	Flat
Debt / Equity	—	0.000	—	—	Flat

Valuation of OMDA

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
P/E	—	60.97x	—	—	Flat
P/B	—	5.18x	—	—	Flat

Supply Chain of OMDA

RELATIONS

Upstream

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Downstream

The Cigna Group (Cigna Healthcare / Evernorth / Express Scripts)NYSE:CI CVS Health (CVS Caremark)NYSE:CVS UnitedHealth Group (Optum Rx)NYSE:UNH Humana Inc.NYSE:HUMKaiser PermanenteBlue Cross and Blue Shield of MinnesotaAmazon.com, Inc. (Amazon Health Services)NASDAQ:AMZN Eli Lilly and CompanyNYSE:LLY Costco Wholesale CorporationNASDAQ:COST Lowe's Companies, Inc.NYSE:LOW Iron Mountain IncorporatedNYSE:IRM

Proxies

Hinge Health, Inc.NYSE:HNGE Teladoc Health, Inc.NYSE:TDOC The Cigna GroupNYSE:CI CVS Health CorporationNYSE:CVS

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Plutux is not an investment adviser. Market data and AI-generated analysis are for information and education only, not investment advice. Disclaimer