Omada Health, a virtual care provider focused on chronic condition management, filed for an initial public offering on Friday, becoming one of the few digital health companies to move toward public markets during a challenging economic climate. Founded in 2012, Omada offers programs for conditions such as prediabetes, diabetes, and hypertension, positioning itself as a “between-visit” solution that complements traditional healthcare systems.
The company has demonstrated solid growth, with revenue reaching $55 million in the first quarter of this year, a 57% increase from the $35.1 million reported during the same period last year. Full-year revenue for 2024 rose to $169.8 million, up 38% from $122.8 million in 2023. Losses have narrowed as well; Omada reported a net loss of $9.4 million in Q1, down from $19 million the prior year, and a 2024 net loss of $47.1 million compared to $67.5 million in 2023.
Despite a largely inactive IPO market for tech and digital health firms in recent years, Omada’s filing indicates renewed optimism. The environment remains uncertain, particularly following the latest policy shifts under President Trump that have disrupted market stability. Nonetheless, Omada is not alone in pursuing a public debut. Hinge Health, a digital physical therapy company, filed its own prospectus earlier this year and continues to signal plans for a listing.
Omada’s business model relies heavily on employer partnerships. As of March 31, the company counted over 2,000 employer customers and supported 679,000 active members. With more than 156 million Americans living with at least one chronic condition, the potential for growth remains substantial.
The company reached unicorn status in 2022 after a $192 million funding round. Major investors include U.S. Venture Partners, Andreessen Horowitz, and Fidelity’s FMR LLC, each holding stakes of 9% to 10%. These backers reflect strong institutional confidence in Omada’s long-term potential.
In a message to prospective shareholders, CEO and co-founder Sean Duffy expressed enthusiasm about the company’s mission and future. He highlighted the rare opportunity to grow a financially successful business that also makes a real impact on people’s health. With the IPO, Omada aims to scale its offerings while reinforcing its place in the evolving landscape of virtual care.
READ MORE: