So, you know those GLP-1 weight-loss drugs that everyone's talking about? Well, it turns out they're not just a social media phenomenon—they're also a pretty good business for digital health companies. Case in point: Omada Health Inc. (OMDA) shares are having a very good Friday morning after the company reported strong quarterly results and launched a new program specifically designed to help employers navigate the GLP-1 craze.

The stock was up more than 10% in premarket trading, which is the kind of move that makes you sit up and pay attention. And when you look at the numbers, it's not hard to see why investors are excited.

The GLP-1 Employer Play

Let's start with the new program, because it's actually pretty clever. Omada announced something called GLP-1 Flex Care, which is essentially a way for employers to offer these popular medications to their employees without getting completely crushed by the cost.

Here's the problem employers face: GLP-1 drugs like Ozempic and Wegovy are incredibly effective for weight loss, but they're also incredibly expensive. And once employees start on them, they tend to stick with them—Omada's data shows 67% of users are still on the medication after one year, compared to 47-49% in similar studies. That's great for health outcomes, but potentially terrible for a company's healthcare budget.

Omada's solution? Let employees purchase the medications themselves through cash-pay channels (think GoodRx or manufacturer savings programs), while Omada provides the clinical oversight and support. It's a way for employers to say "yes, we support your health journey" without having to foot the entire bill. And given that Omada now supports more than 150,000 members on GLP-1s (up from just over 50,000 at the end of 2024), there's clearly demand for this kind of approach.

The Numbers That Matter

Now, about those quarterly results. Omada reported fourth-quarter earnings of 8 cents per share. That might not sound like much, but when analysts were expecting a loss of 3 cents per share, it's actually quite impressive. Sales came in at $75.85 million, which is up 58% from the same period last year and comfortably beat the consensus estimate of $69.67 million.

CEO Sean Duffy put it this way: "We demonstrated GLP‑1 companion support innovation, advanced our member‑facing AI capabilities, and introduced meaningful program expansions—all designed to support our members in achieving durable health improvements..."

Translation: We're not just riding the GLP-1 wave—we're building tools and services around it that actually help people stick with their treatment and get better results.

Looking ahead, the company is feeling pretty optimistic. They're forecasting fiscal 2026 sales of $312 million to $322 million, which is above the consensus estimate of $311.41 million. When a company beats expectations for the current quarter AND gives guidance that's better than expected for the future, that's usually a recipe for a stock price pop.

What the Charts Are Saying

From a technical perspective, the stock is showing some interesting signals. It's currently trading 31.6% above its 20-day simple moving average and 11.5% above its 50-day average, which suggests short-term strength. However, it's still 9.1% below its 100-day average, indicating there might be some longer-term weakness to work through.

The RSI (Relative Strength Index) is sitting at 56.70, which is right in that neutral zone—not overbought, not oversold. Meanwhile, the MACD (Moving Average Convergence Divergence) is showing bullish momentum, with the MACD line above the signal line.

For those who care about these things, key resistance sits at $17.00, while support is around $14.50. The stock was trading at $15.03 in premarket action, so it's right in the middle of that range.

What the Analysts Think

The analyst community seems generally positive on Omada, with an average price target of $24.18 and a Buy rating consensus. But as always, there are some differences of opinion:

• Barclays has an Overweight rating but lowered their target to $17.00 on March 3
• Needham maintains a Buy rating with a $28.00 target (set on January 22)
• Wells Fargo initiated coverage with an Equal-Weight rating and $17.00 target on January 9

So you've got one firm that's bullish but cautious (Barclays), one that's very bullish (Needham), and one that's basically saying "meh, it's fairly valued" (Wells Fargo). That mixed bag of opinions is pretty typical for a growth stock in a hot sector.

The bottom line here is that Omada is executing well in a market that's clearly hungry for digital health solutions, particularly around weight management. The GLP-1 Flex Care program addresses a real pain point for employers, and the financial results suggest the business model is working. Whether the stock has more room to run will depend on whether they can continue to grow that member base and turn those members into sustainable revenue.