Omada Health, a digital chronic care provider, submits IPO application.
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Omada Health smart devices in use.
Courtesy: Omada Health
Virtual care company Omada Health filed for an IPO on Friday, becoming the latest digital health company to signal its intent to enter the public markets despite a turbulent economy. Founded in 2012, Omada offers virtual care programs that support patients with chronic conditions like prediabetes, diabetes, and hypertension. The company describes its approach as a "between-visit care model" that complements the broader health-care ecosystem, according to its prospectus.
Revenue increased 57% in the first quarter to $55 million, up from $35.1 million during the same period last year, the filing noted. The San Francisco-based company generated $169.8 million in revenue during 2024, a 38% increase from $122.8 million the previous year.
Omada's net loss narrowed to $9.4 million in its first quarter, down from $19 million during the same period last year. It reported a net loss of $47.1 million in 2024, compared to a $67.5 million net loss in 2023.
The IPO market has largely stagnated across the tech sector for the past three years, and within digital health, it has been almost entirely inactive. Following a tumultuous month triggered by significant tariff policy announcements, taking a company public has become an even riskier endeavor.
However, Omada Health is not the only digital health company seeking public market debut this year. Virtual physical therapy startup Hinge Health filed its prospectus in March, signaling to investors its intention to move forward.
Omada contracts with employers and reports that it collaborates with over 2,000 customers, supporting 679,000 members as of March 31. With more than 156 million Americans living with at least one chronic condition, there exists a substantial market opportunity, as outlined in the company's filing.
In 2022, Omada announced a $192 million funding round that raised its valuation above $1 billion. U.S. Venture Partners, Andreessen Horowitz, and Fidelity's FMR LLC are the largest outside shareholders in the company, each holding between 9% and 10% of the stock. "To our prospective shareholders, thank you for learning more about Omada. I invite you to join our journey," said Omada co-founder and CEO Sean Duffy in the filing. "In front of us is a unique chance to build a promising and successful business while truly changing lives."
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