Omada Health, Inc.

Good day, and thank you for standing by. Welcome to the Omada Health Fourth Quarter 2025 Earnings 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 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Alan Kells, Vice President, Investor Relations. Please go ahead.

Thank you. Good afternoon. Welcome to Omada Health's fourth quarter and full year 2025 earnings call. Joining me today are Sean Duffy, our co-founder and CEO, Wei-Li Hsiao, president, and Steve Cook, CFO. Before we begin, I'd like to note that we'll 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 available on our website. We'll also be making 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. 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.

Good afternoon, everyone, and thank you, Ellen. 2025 was a milestone year for Amada. We became a public company, delivered 53% revenue growth for the year, and achieved GAAP profitability for the first time in Q4. We also significantly outperformed initial expectations from the time of our IPO, and we believe we're entering 2026 with momentum, with ambition, and with a clear plan for what's next. Here are the highlights from Q4 and the full year. Total members reached 886,000 at year end, up 55% compared to 2024. Revenue grew 58% in Q4 and 53% for the full year to 260 million. Gross margins expanded to record levels. We achieved our first quarter of positive gap net income in Q4 at 5 million, and we delivered positive full year adjusted EBITDA of 6 million. We believe these results reflect the impact of strong market tailwinds combined with a decade of investments. Omada's technology and operational platform, our clinical programs, our peer-reviewed research, productive distribution channels, and more than a decade of rich and unique data are strongly suited for this exact moment, for when customer demand for chronic care solutions, a rapidly evolving GLP-1 marketplace, and AI-driven innovation converge. We believe that 2025 demonstrated how we can capture that momentum. But the real story is at the level of the person we're supporting. As a GLP-1 care track member recently told us, the OMADA program in collaboration with my doctor and the use of GLP-1 meds has been life-changing. I learned real skills needed to lose weight and be healthy for a lifetime. The beauty of the OMADA plan was that I did not just jump in with all of these changes on day one. The plan guided me to focus on different lessons each week and then select a goal for the coming week. When I was stuck, my coaches were there to make suggestions and help guide me along the way. Knowing that someone cared and took the time to check my meal log and comment about a recipe or a new meal idea I put together that looks good helped me feel that I was not doing it alone. Stories like that get to the heart of what we do. OMADA is on a mission to bend the curve of obesity-related disease. Forty percent of adults have obesity, and nearly two-thirds have at least one cardiometabolic risk factor, such as obesity, diabetes, hypertension, or cardiovascular disease. We believe the healthcare system is structurally unable to address this at scale without a fundamentally different care model. A person's disease trajectory is determined largely outside the doctor's office through nutrition, movement, sleep, medications, and care plan adherence. Yet the broader healthcare system still organizes around infrequent 15-minute visits. Omada puts the space between those visits at the center of care through an integrated multi-conditioned care model refined over more than a decade. We've built a member experience that brings together care teams, AI, connected devices, and a custom care platform designed for quality at scale. We've expanded into a multi-conditioned platform spanning weight health, diabetes, hypertension, musculoskeletal care, GLP-1 companion care, GLP-1 prescribing, and our newly launched cholesterol program, giving employers the convenience of a single partner for multiple highly prevalent conditions. We've accumulated a large and growing body of peer-reviewed evidence and accreditations, which we believe is a key reason employers and health plans choose OMADA. We helped the market understand that Omada delivers true clinical quality healthcare, which enables us to contract and bill as a healthcare provider, allowing our fees to be treated as medical spend. We've established thousands of customer relationships across a broad web of distribution channels, spanning an estimated more than 25 million covered lives. And in operating for over a decade, we've amassed a robust and unique data set tens of millions of care team messages and billions of data points that underpin our product strengthen our ai capabilities and allow us to innovate more quickly on the back of significant scale these investments form the foundation of everything ahead they allow us to look through the windshield with optimism ambition and excitement 2025 served as a significant launch pad for our next chapter and i want to touch on three areas where we're particularly proud First, we believe 2025 was the year we solidified our position as a leader in enterprise GLP-1 companion care, while reinforcing that our opportunity expands well beyond GLP-1s. Employer demand to maximize the value of their GLP-1 investment and reduce waste drove significant adoption of our GLP-1 care track. As we've scaled to over 150,000 members on GLP-1s, we've seen what we believe these members need most, support to stay on therapy, manage side effects, build sustainable habits, and maintain results if and when they discontinue. Our results have shown that GLP-1 care track members on average achieved greater weight loss compared with published real-world evidence and critically largely maintained their weight on average one year after discontinuing GLP-1 therapy. These outcomes challenge the narrative of inevitable weight rebound and underscore the power of behavior change layered on top of medication. In November, we announced our GLP-1 prescribing capability. As the landscape grows more complex with oral and injectable options, varying doses, and emerging maintenance therapies, employers are asking us to help them navigate it all. Adding prescribing strengthens our position by helping ensure that the right member is on the right medication at the right time, while also delivering lifestyle support designed to improve outcomes and minimize waste. At the same time, the broader spotlight on GLP-1s has increased attention on cardiometabolic disease overall. Because OMADA supports weight health with or without GLP-1s, and helps members manage diabetes, hypertension, and now cholesterol, we've also seen strong growth among members not on GLP-1s. For customers that choose not to cover GLP-1s, our weight health programs support their employees, and new options like our GLP-1 FlexCare create flexible paths for employers to offer meaningful support even when they are not in a position to afford the medicines. Second, we made meaningful progress with AI in 2025. And I am particularly excited about our potential for AI innovation going forward. We've embedded AI throughout Omada. For members, we launched Omada Spark, our AI-powered assistant that works alongside human coaches for real-time nutritional support, motivational challenges, and habit building. We launched that in Q2 of last year and followed with enhancements in Q4 with Meal Map, an AI-driven experience focused on food quality, not just calories. For our care teams, AI enabled tools like context summarization let coaches spend less time on administration and more time on personalization. And 100% of our engineers are equipped with AI assisted coding tools to improve development speed and output. What makes AI at Omada different from a typical software business is what sits underneath. In caring for members, we've received tens of millions of care team messages, billions of data points, and more than a decade of specific clinical outcomes comprising what we believe is one of the most exciting cardiometabolic data sets in digital health. That data can improve our AI tools and overall member experience such that interactions with today's members make the experience better for tomorrow's. The last area I'm proud of in 2025 is our commercial success. As Raylee will share, in 2025, we closed significant additional covered lives, which we believe positions us well going forward. Our between visit care model and multi-condition platform continue to resonate as we closed contracts in the second half of 2025. Employers and health plans increasingly see the advantage of working with a single, scaled, evidence-based partner, and our year-end results reflect buyers leaning into that vision. In 2026, we plan to maintain our focus on the pillars that power or model the growth, expanding covered lives through new customers and channel partnerships, increasing enrollment effectiveness so that more eligible people become active members, and driving deeper engagement and retention through AI in a continually improving member experience. Across these pillars, we're expanding capabilities, GLP-1 prescribing, cholesterol, and GLP-1 FlexCare, greater personalization and content through AI, and the use of AI to drive efficiency across engineering, operations, and care delivery. These investments are intentionally designed to balance growth and profitability as we continue to move toward our long-term ambition of 20% plus percent adjusted EBITDA margins. We accomplished a great deal in 2025 for Ramada's mission, and we are entering 2026 with bold ambitions to bend the curve of disease. That's what we're here for, and that's why we do what we do. With that, I'll hand things over to Wei Li.