Great. Good morning, everyone. Thanks for attending the Canaccord Genuity Growth Conference this year. We really appreciate it. I am Richard Close in equity research here at Canaccord, covering digital and tech-enabled health. We are excited to have Omada Health here. First time at the conference. From management, we have Steve Cook, CFO, and the rest of the finance team here to discuss Omada. I think I first met Omada back in 2018. It was shortly after the company rolled out diabetes and hypertension. It has really been pretty remarkable to see how the company has evolved since then and last year's IPO. Steve, maybe first, thanks for coming, but just for investors that are maybe newer to the Omada story, just walk through us the journey real quick and where the company has come from to what it is today, including maybe the programs that you guys currently address. Yeah, absolutely. Good morning, everyone. So yeah, back in 2010, Sean and Adrian founded the business with the explicit intent to bend the curve on cardiometabolic disease. Their future state vision is a day where the epidemiologists can actually see the bending of the curve because Omada itself is actually making an impact on everyone in the country. At the beginning, Sean and Adrian, they literally sat in the homes of people struggling with obesity, struggling with a lot of these disease states, and just wanted to understand how we could best serve them. As of today, we are now at 1.1 million members. We are partnered with all three of the major PBMs, multiple of the largest health plans across the world. Per your point, a big part of our strategy was up until 2018, we just had a single product. It was Prevention & Weight Health. In the 2018, 2019 timeframe, we entered diabetes, we entered hypertension, then we acquired into MSK through our Physera acquisition in 2020. Now we have recently released our cholesterol program as well as our GLP-1 product offering. Our intent and the way we have been really just realizing a lot of economic benefit is selling across the entire condition type. We listen to our customers. Costco is probably our most brand name example. We started with them in 2013. They work with us across all of our product categories, and every time we have released a new product, we have gone back to them and they have picked it up, or they have asked us to go into some of the categories sometimes. We always start with listening to our customers, and if they want us to go into a specific area, then we really take that seriously. We underwrite an investment protocol and then determine if we want to go in there. The future is bright right now. Excellent. We're lucky enough, or maybe unlucky, but we're just exiting second quarter reporting season. Last week was crazy to say the least for us. You just reported results last Thursday. Before we go deeper into the story, it would be good to just level set in terms of what maybe you think the big takeaways are from the quarter you just reported. You also had a management change, which comes pretty quickly after the IPO last year. Just sort of talk a little bit about that as well. Yeah. Maybe I'll start there and then we can go back into the quarterly performance. Sean, our Co-Founder CEO, announced a transition last week. He's going to become our Executive Chairman. Wei-Li, who's been his predecessor for some time. He's been with the company for the better part of seven years. He became President four years ago, is going to take the CEO mantle. Wei-Li is a very seasoned operator, was at Eli Lilly and Company for two-plus decades, and just an amazing execution vehicle through him. Sean's still going to be super actively involved in the business. He's going to be the rainmaker, so to speak. He wants to be out there really going and talking to all the big health plans, making sure he's just on the front face and really building up the Omada story externally. I think this has been a natural progression evolution in our business. I'm really excited about that. From Q2, a record quarter for us. Highest-ever revenue, $88 million, 43% growth on a year-over-year basis. Highest ever gross margin, 74%. We then printed $10.8 million of adjusted EBITDA. We've really been, especially in this digital healthcare category, trying to demonstrate the durability of these assets. I think a lot of investors got burned in that 2021 time frame with false promises. We've just been quarter in, quarter out, trying to keep the growth high, but then also really display margin expansion across both gross margin and EBITDA. Q2 was a really good proof point there. I think Q2, most notably, it wasn't any single thing that carried the day. It was a broad-based win across all product types. Diabetes and hypertension, which are our highest priced products, and they actually have the strongest LTV. We're the fastest-growing. I think a lot of investors, they think it's like we're just riding this GLP-1 tailwind oftentimes, and that's really not the case. The GLP-1 conversation is acting as a tip of the spear, and then we can go and cross-sell across our entire product suite, which is really how we've been winning in market for the past couple of years. Yeah, just awesome quarter overall. Excellent. We will dive deeper into GLP-1s later on. One of the things that is interesting about Omada is how the revenue model changed over time from maybe your first cohorts of contracts back in the day with pre-diabetes, and I think even with some of the diabetes. Can you just tell us how you make money essentially on the top line? Yeah, look, I think we have had a couple different pricing models through time, but the most important thing, and the way Sean envisioned billing when we started this business, was to always make our revenue connected to some sort of economic outcome. Either it be clinical or activity, something that is actually driving health change. I think the billing models of past were like PEPMs. Ryan and I dealt with this at One Medical for years, where you have this weird incentive kind of conflict where your incentive as the provider of that benefit is actually to lower your performance as much as possible to then increase margin. Our flavor of billing is we only charge people when they are actively engaged in our program. It is very simple. It is very simple to contract with plans and employers. If they stop using the program, we stop charging for it. We have a direct incentive to make our product experience as compelling as possible so that folks are staying actively engaged with that. That is the most common flavor that we have sold exclusively for the past six or seven years is, that could be engaging with your coach, it could be utilizing your devices, it could be joining a community. These are all logged as activities, and then if you trip that billing threshold, we then in turn file a claim and recognize revenue for that. You bill as a medical provider essentially? Yeah. We bill as a full-covered entity. Sean took our trials to the American Medical Association, I think this is early teens, and was issued the first ever digital specific CPT code. It is a Category III code. That is what allows us to bill on fee-for-service rails just like we are a provider. That is really how the entire business model works. The end cost to our end users is zero. We bypass HDHP, bypass deductible, and do everything through the plans and then through the employers. That is right. Okay. That is really helpful. That sort of feathers into the next question, which there were several questions in the analyst follow-up from the second quarter. I guess my headline raised some questions with respect to the guidance, t he forward guidance. In terms of the second half of the year, you mentioned the strong revenue you posted in the second quarter, but if you look at the rest of the year guidance, it implies a step down in terms of revenue for third and fourth quarter off of that second quarter levels. Can you explain that a little bit? Yeah. Because I think it factors into what we just talked about in terms of the revenue model. Yeah, 100%. Our typical seasonality pattern is such that we spend H2 building a pipeline, closing new employer clients, and then we really see the biggest influx of new members in the first quarter. That's associated with, you guys are all part of employers, you're launching the new benefits cycle, you get these new benefits, and typically employers bias launching new benefits in that first quarter. That's been our typical pattern. You'll see Q1 spike in terms of net new member adds. That is the dynamic that actually presses gross margin down because we have higher care delivery costs, we have higher device costs in the first quarter, and then as you go throughout the year, you see gross margin climb. What you will typically observe in our business is a stronger H1, and the back half tends to taper a little bit as there is just less net adds throughout the course of the year. Now we are focused this year, especially just on building a pipeline with Optum, with CVS, to make sure that we start strong again in 2027. 2024 and 2025 were slightly atypical. We were building into a new channel relationship across multiple business lines, and we actually saw acceleration in the back half of both of those years. We grew 53% last year, so it is a little bit of a tough comp on a year-over-year basis, but having a year that is still with the midpoint of the guide at 30%, we feel that is well above what we committed, which was 20% at the beginning. Is it a little bit where maybe these new members onboard and they are engaged for three or four months, five months in the first half of the year, and then since you bill on an engagement perspective, they might not engage in July or August, but do come back at some point. Is that a factor in it at all? Not as much. Billing is kind of a function of a couple things. It is what channel you came through, what product you are on, and then your tenure in the program. What we observed, especially in the first quarter, is we were actually seeing members in their fifth year with Omada staying engaged. But when you are five years out in your journey with Omada, you are not billing like you were in year one. In year one, you are probably billing 10, 11 months on average. In the fifth year, you are probably billing two or three months. So you are still in the member count because you are an active billable member, but you are driving overall less revenue. But what is most important is if you get in that fifth year of the curve, those are some of our most profitable members. There is very little incremental associated cost with continuing to build that revenue because all the cost was front-loaded. You have already spent the money on the devices. A lot of the care delivery cost was upfront. So those are some of our highest gross margin members, but they can have a dilutive effect on a trailing 12-month revenue per member. Yeah. And that's what you brought up. I think some people thought that was a red flag last quarter. In terms of maybe the average revenue per member decreasing a little bit. And that's just the different cohorts. Can you talk a little bit more about the different cohorts and then the lifetime value of a member in diabetes and hypertension, and just dive a little bit more deeper into that. Yeah, sure. We actually saw trailing 12-month revenue per member increase 2% year-over-year, so we're at $284. This is mostly a function of mix. Diabetes and hypertensive members are their highest priced products, roughly $100 list price. And then for the chronic conditions like diabetes and hypertension, they actually stay in program the longest. So we've actually motioned our team where we give the sales team incremental kickers if they're able to close more diabetic and hypertensive deals out there. And so that's what we've been working on, is making sure that we have a bigger portion of our total member base in those conditions because they're able to drive higher LTV and better unit economics for the business overall. Okay. You had mentioned the growth acceleration the last couple of years. Then obviously there's some normalization. Talk a little bit about that normalization. Is it just law of large numbers, or how are you thinking about that w hen investors ask you? Our commitment during the IPO was threefold, is to grow 20%+ for the foreseeable future, 70% gross margin, and then 20%+ adjusted EBITDA margin. We backed that up with 53% last year. The midpoint of the guide is now 30%. We really like the setup for next year. Again, we announced our CVS relationship just over a year ago. We just announced our Optum relationship about six months ago. We just announced a massive expansion with Health Care Service Corporation. We are expanding into three additional states going into next year, another 1.5 million covered lives. Now our sales teams, they are really excited because they get to go open these new channels, these new greenfield opportunities. We are going to stay with our 20%+ commitment for the foreseeable future and then increment up from there as we get more intel. But what is most important on these newer channels, especially relative to some of our older business with The Cigna Group, is that we are in there with typically slightly more favorable price points, and we are also in there with more products. In Optum, notably, we are in there with our prescribing product. That is going to be our highest priced product. It is roughly 2.5x more than our older prevention line item. As our reps are able to start closing these deals in 2027, 2028, you are going to see that start to materialize in the P&L. Can you talk a little bit about, obviously the growth has been huge over the last couple of years. You just mentioned channel partnerships. How you think about the channel partnerships versus direct sales and organization. Maybe give some color in terms of how the direct organization has changed over the last couple of years. Yeah. The direct versus channel distinction is usually a procurement decision on behalf of the employer. Sometimes they just want it on their own paper. Economically speaking, it is agnostic. It does not really matter from a pricing perspective. We like going through the channels because what we are able to do is keep a pretty small sales team. Our direct sales force is 25 people across a channel sales team specifically and then an employer sales team. These are just high-end kind of SWAT and Navy SEAL type folks, very senior salespeople that go in and close these big channel relationships. Then we go work with Optum, and then we go work with CVS, and we work with their sales team, and then they sell Omada on our behalf. We have extracted a ton of sales leverage because of that dynamic. More recently, the majority of our business now flows through that center line where we are going through the PBMs or through the channel partners and less through from a direct perspective. The channel partnerships see Omada as adding value to their customer. Yeah, sometimes you're in these books of business with more competitors, so you need to stand out amongst the other competition, these books of business. But that's on us, and we think we, especially in some of the more recent books, in the Optum book, I think we stand to really benefit from the competitiveness in that channel. Is there anything we should really take into account in terms of economics of channel versus direct? Yeah, direction, no. There's really no distinction channel versus direct. But I do think channel-wise, as we've gone through time, we have got in there with more products. We're in both CVS and Optum across multiple products, across multiple lines of business. Then as we displayed in The Cigna Group book, when you demonstrate success in a self-insured ASO book, they have a higher willingness to write you into their fully insured books. That pattern has played out really beneficially for us over time. All right. With respect to the opportunity going forward, where do you think we are in terms of penetration, in terms of self-insured employers, health plans, and whatnot? How do you look at the TAM opportunity and where you are penetrated? Yeah, I still think it's early innings. We have 25 million covered lives today. We're still very early days with both CVS and with Optum. We have our investor day next month on September 10th. What we're planning to do there is actually spend quite a bit of time articulating how we built into both The Cigna Group and the Express Scripts book over time and then help folks, investors, really from an illustrative perspective, start to think through, hey, how is CVS? How do we expect CVS and Optum and Health Care Service Corporation to also build through time? These are massive lines of business, and we're just literally not even at first base in terms of what we can do in those lines of business. Okay. To end maybe the sales and marketing or market opportunity, probably a question more for Wei-Li on this. That's okay. Yeah. Just any thoughts on the commentary of last week and pipeline and the opportunity for the rest of the year in terms of new business? We are entering the season when new business closes, really. Yeah, no, we have been looking at our pipeline reports, and I think what you are seeing is a really healthy distribution across a lot of the new channel opportunities. Especially compared to years past, we are seeing obviously a lot of new pipeline build with The Cigna Group and Express Scripts, and now you are seeing some of the other channel partners become a bigger portion of that mix. One of the questions we get from investors a lot, or it just comes up on X and other things, is just the customer concentration across these two channels, because we have disclosed it is like 60%+ of our revenues through The Cigna Group and through Evernorth. Like, "Hey, when does that kind of normalize? Do you have concentration risk there?" We really like how the pipeline is building across these new opportunities. CVS Health is about a year ahead compared to Optum. But we are in there with favorable economics. I think through time, you will see that start to normalize. But yeah, no, sales teams are feeling really good about the overall pipeline. Great. Let us move on to the exciting part and the CFO part of our discussion. You have to be really proud of the margins that you guys are posting. You mentioned a record level here in the second quarter, gross margin. I think when I first started talking with Sean back in 2017 or 2018, margins were 40% or something like that. Yeah. Talk about the journey from that to where we are today. I do not want to steal your thunder for the investor day coming up in September, but just think about that progression and maybe thoughts going forward. Yeah, I think a couple of thoughts here. Again, during the IPO, our commitment was 70%+ gross margin on an annualized basis and then 20%+ on adjusted EBITDA. We are going to be revisiting those targets at Investor Day next month. I think a couple of things have happened. The first is just top line. As we have added more products with higher revenue per member, the mix is improving. You are just actually carrying forward more revenue at better gross margin profiles. On the cost of revenue side, our cost of revenue is kind of two main things. It is our care teams. These are typically health coaches. They are W2 hourly employees. They work 35 to 45 hours a week, and then the devices that we ship. On a year-over-year basis, our health coach count is actually down. That is kind of threefold. That is just extracting more core efficiencies from a staffing perspective. So we have experimented with dozens of staffing models. We structured them hourly because when Q1 spikes, we can work them towards, like they work towards the higher end of that range. When Q2 and the rest of the year start to taper a little bit, we can lower that and then match the supply and demand. What you do not want to have happen is where you are just carrying sunk labor costs, where there is actually not enough demand to meet the supply. That model, which we have experimented with over multiple years, we finally got that really dialed in. Through time, across our devices or across our supply chain, we have been able to negotiate a lot of volume-based discounts across our shipping partners, across our entire device ecosystem, across scales and continuous glucose monitors and our blood pressure cuffs. As you do more volume, they are going to give you more volume-based discounts, and so that has benefited us all tremendously. AI is obviously the third lever. When we thought through AI, we wanted to attack it from a perspective like stack ranking it. Go across the biggest population with the most consistent workflows where we could start to create automation. We have done that with our care delivery teams. They're using this daily where we just released contact summarization, which could take an entire member's life cycle in our portal, in our homegrown EHR, where it shows their nutritional patterns, their behavior patterns, their exercise patterns, and then distill that down into a quick recommendation, where usually previously that was extremely manual. They have to read it all and then distill it down, and now that's happening in a matter of seconds versus what used to take quite a bit of time. That's really leading to the margin expansion. On OpEx, there's kind of three levers: sales, marketing, and then our EHR. Our sales team, we talked about, very small sales footprint. That's because we're leveraging the channels to sell our product. On marketing, the main way we get folks in the door, you don't see Omada billboards out there. That's not what we do. We do email marketing. We did 100+ million emails last year, 5,000 different campaigns. We've got really good at this. We A/B test these things through and through. We have a playbook for every type of employer, and we really know what's working and we've been able to see over 20%+ increases last year and this year in enrollment rate conversion within our employers. Email's extremely cost-effective. We will use direct mail for targeted populations if we like the CAC LTV. Lastly is our EHR, which is our homegrown platform that our coaches use every day. We've spent tens of millions of dollars standing this thing up over the past 15 years. When we want to add a new product, it's very seamless. We stood up our GLP-1 Care Track on our existing tech stack in three months, and we didn't have to pour in incremental millions of dollars to standing that up. Feeling really good across the entire dimension there. Okay. Why don't we just close out? We have a couple of minutes here left. Just go a little bit deeper on the GLP-1, maybe the programs that you are offering. Obviously, you saw a lot of intra-year membership last year. I assume a bunch of that was GLP-1s, and since it was so new to everyone and employers grappling. What do you offer, and how do you sit in this GLP-1 ecosystem? Yeah. I think what's most important is we are not a GLP-1 play. When we last announced our GLP-1 membership, we had 150,000 members on GLP-1s across 886,000 total, so 15%. I think the most important takeaway for folks is, again, GLP-1s are this tip-of-the-spear conversation where employers are really focused on cost mitigation and how to have a GLP-1 program, whether they agnostic if they actually cover it or not. Now with our current offerings, we have our core GLP-1 Care Track, we have our Enhanced GLP-1 Care Track, and then we have our GLP-1 Flex Care. So we can partner with any employer if they are covering the GLP-1 or if they are not covering the GLP-1. Even if they are not covering it is actually creating more pressure for them to have some sort of solution for their employee population. We are seeing a lot of wins where an employer will elect not to cover a GLP-1, and then we will go in there and actually just close them with our core cardiometabolic offering. That has been the design intent is to have a really flexible suite of products, where if folks are off covering it, we can support them. If they are not covering it, we can also support them there. Now more recently, we mentioned our intent to go into prescribing, which we will start to see roll out through the Optum book next year. You mentioned you have a new client you are launching on that? Yeah. We just closed a pretty big jumbo client on that. We did not expect any wins in 2026. Folks are typically biased launching in the following year, but someone wanted to start early. So that was a nice surprise, yeah. But again, the GLP-1 efforts have fostered increased interest in the core products. 100%. Yeah. That is the entire intent. We can get in there with any product. This used to be Prevention & Weight Health, just because that is where we got our start, and then you cross-sell the diabetes, cross-sell the hypertension. Now it is folks want to have a GLP-1 conversation, then you can have a broader conversation across the entire cardiometabolic suite, across cholesterol. That has been really cool. Awesome. Yeah. Thanks for joining us today and giving us your time. Of course. Thank you. All right. Thank you.