What You Should Know:
– Virtual care company Omada Health filed for an initial public offering (IPO) on Friday, according to the SEC filing.
– Founded in 2012, Omada specializes in virtual care programs designed to support patients managing chronic conditions such as prediabetes, diabetes, and hypertension.
– The company describes its unique approach as a “between-visit care model,” aiming to complement the broader healthcare ecosystem by providing ongoing support to patients, according to its prospectus.
Strong Growth and Improving Financials
Omada Health’s move comes at a time when the IPO market, particularly within the technology sector, has been largely dormant for the past three years. Despite the market headwinds, Omada Health’s filing reveals significant growth and improving financial metrics. For the first quarter of 2025, revenue increased by 57% to $55 million, up from $35.1 million during the same period in the previous year. The San Francisco-based company generated $169.8 million in revenue during 2024, a 38% increase from $122.8 million in 2023.
Omada’s net losses have also narrowed. In the first quarter of 2025, the company reported a net loss of $9.4 million, a reduction from the $19 million loss in the first quarter of 2024. For the full year 2024, its net loss was $47.1 million, compared to a $67.5 million net loss in 2023.
Omada’s Model, Market Opportunity, and Backing
Omada Health primarily contracts with employers, stating it works with over 2,000 customers and supported 679,000 members as of March 31, 2025. The company’s prospectus highlights a significant market opportunity, noting that more than 156 million Americans suffer from at least one chronic condition.
