New analysis increases our conviction in 20%+ LT margins

Research evidence excerpt

New analysis increases our conviction in 20%+ LT margins

Idea

June 22, 2026 04:00 AM GMT

Morgan Stanley & Co. LLCMOmada Health Inc | North America Craig Hettenbach

Equity Analyst

New analysis increases our Craig.Hettenbach@morganstanley.comJialin Jin +1 212 761-6435

Research Associate

Jay.Jin@morganstanley.com +1 212 761-3913

conviction in 20%+ LT margins John Y Park

John.Park@morganstanley.com +1 212 761-4029

Overlooked fact: OMDA is significantly more profitable at their Erin Wright

current revenue than where HNGE was at similar revenue 3 Equity Analyst

Erin.Wright1@morganstanley.com +1 212 761-6137

years ago. HNGE is being rewarded for delivering the power of Linda Bolduc

Digital Health 2.0, creating a halo effect under which we see EquityLinda.Bolduc@morganstanley.comAnalyst +1 617 856-8009

catch up potential in OMDA; Reiterate OW & $30 PT. Michelle Foley

Charting Omada’s margin trajectory relative to Hinge shows the company is very Michelle.Foley@morganstanley.com +1 212 761-4056

Natasha Arya

much on the right track. One of the biggest pushbacks we hear on OMDA is the Research Associate

company’s slim margins today. A common question is how much does scale play in Natasha.Arya@morganstanley.com +1 212 761-6294

the margin differential between Omada Health and Hinge Health. We looked at how

Omada Health Inc (OMDA.O, OMDA US)

efficient the companies were running at similar revenue bases (Hinge 2023 revenue Top Pick

of $293mn vs. Omada 2025 revenue of $260mn) to shed light on this key debate – Healthcare Technology | United States of America

see Exhibit 3 . In addition to driving upside to revenue (2026 guidance calls for 25% Stock Rating Overweight

y/y growth and we estimate 23% growth in 2027E), key levers for margin expansion Industry View In-Line