Omada Health, a virtual chronic care provider, filed to go public Friday, marking the second digital health company making plans for an initial public offering in 2025.
The company has not specified the number of shares to be offered or the price range for the proposed offering.
It intends to list on the Nasdaq Global Market under the ticker symbol “OMDA.”
Omada filed a draft registration statement with the U.S. Securities and Exchange Commission last June, according to SEC filings. The SEC allows companies to submit a draft registration statement for non-public review, which means the filing is kept confidential until it’s publicly filed.
Omada’s IPO plans follows closely on the heels of digital physical therapy company Hinge Health’s S-1 filing back in March.
Omada launched its initial virtual program in diabetes prevention and weight health in 2012. The company now has 2,000 customers and over 679,000 total members enrolled in one or more programs, according to its S-1 filing. Omada has it has supported over one million members since launch.
The company expanded its virtual care programs to target prediabetes, hypertension and musculoskeletal conditions. It also offers an enhanced care track program for GLP-1 drugs that seeks to make it easier for employers to cover and provide these medications. The offering pairs GLP-1 medications with clinical oversight and lifestyle change to drive weight loss and better manage obesity and its related conditions.
Omada has raised over $500 million in funding, according to CB Insights. It banked $192 million in a series E funding in February 2022, propelling it to unicorn status.
Omada sells primarily to employers, who either contract with Omada directly or obtain access to our programs through a channel partner, such as a health plan or PBM. The remainder of is revenue is derived from inclusion as a benefit in fully insured health plans, primarily in the commercial market, from PBMs through specific therapeutic programs, or via health systems that assume the cost of care for their patients.
“Increasingly, customers and channel partners are looking for solutions that can address the multiple conditions impacting their members or employees, demonstrate proven clinical outcomes and economic value, and be easily implemented and seamlessly integrated with their existing benefits ecosystem,” Omada said.
Omada said it launched a new model of care, called “between-visit care” to bring together different healthcare professionals, connected devices and personalized software experiences to fill gaps in medical care when patients aren’t seeing their doctors.
The company says its virtual care programs are rooted in evidence and combine relationship-based, human-led clinical care with purpose-built technology. “We call this approach Compassionate Intelligence. We work to develop trust with each member and use technology to help us personalize their experience, enabling us to unlock results at scale,” Omada said in the S-1 filing.
In early 2024, Amazon rolled out a service to connect customers with virtual care benefits for managing conditions like diabetes and hypertension and tapped Omada as its first partner.
Omada’s revenue grew 38% from $123 million in 2023 to $170 million in 2024. In the first quarter of this year, the company brought in $55 million revenue, up 57% from Q1 2024 ($35 million).
The digital health company has history of net losses, due in part to the “significant investments we have made in the design and development of our programs and platform enhancements, and have not yet achieved profitability on an annual basis,” Omada said in the S-1 filing.
In 2023, Omada reported a net loss of $67.5 million and that shrank to $47 million in 2024. The company reported a net loss of $9.4 million in Q1 2025, narrower than its loss of $19 million in the same quarter of 2024.
The company is going after a massive market. As of 2022, more than 156 million Americans suffered from one or more chronic conditions, such as obesity, prediabetes, diabetes, hypertension, and musculoskeletal conditions, and approximately 40% of U.S. adults suffered from two or more chronic conditions, based on data published in the Annals of Bioethics & Clinical Applications.
The company’s business is highly concentrated among a handful of customers. Sales from or through its top five health plan and PBM partners represented 69% of its revenue in 2024, according to the S-1.
For the first three months of 2025, one health plan or PBM accounted for 31% of Omada’s revenue, and a second health plan or PBM accounted for 29% of its revenue. Each of these health plans or PBMs are affiliates of The Cigna Group, Omada Health wrote.
“The loss of any of our key customers or channel partners could negatively impact our revenue as we work to obtain new customers or establish replacement channel partner relationships,” the company wrote.
Omada is looking to grow its business by acquiring more covered lives across multiple buyer categories: selling to new customers and channel partners as well as expanding within our existing channel partners to new lines of business, the company said in its S-1 filing.
“Our diverse go-to-market strategy affords us flexibility to pursue growth via multiple distinct channels, including through new channels and in lines of business where we have yet to place significant focus, such as Medicare Advantage” and “fully insured lines of business,” Omada said.
There also is potential for growth in its more nascent channels including health systems and government programs, such as the Department of Defense and Veterans Affairs. “We believe our proven outcomes and value proposition will resonate with these buyers similar to how they have resonated within our core markets,” Omada wrote.
The company estimates about 20 million people have benefits coverage for one or more Omada programs. This represents about 14% of the self-insured insurance market, 9% of the fully insured market, 1% of the Medicare Advantage market and 1% of the PBM market. So, Omada sees plenty of runway to grow.
Omada also boasts a 90% three-year average customer retention rate. The digital health company also touts its clinical and economic outcomes, supported by 29 peer-reviewed publications.
Studies have shown reductions in hemoglobin A1c, total cholesterol, and blood pressure, alongside improved medication adherence and satisfaction rates.
It also touts cost savings for employers by lowering medical costs. Omada’s diabetes program, as one example, can lead to $3,900 in gross healthcare cost savings per member at three years of using the program, according to S-1 filing.
The Peterson Health Technology Institute has been critical in its evaluations of the digital health tools and their effectiveness.
In a report on hypertension solutions, PHTI concluded that companies focused on behavior change—Teladoc, Omada, DarioHealth, Hello Heart and Lark—had little to no effect on systolic blood pressure compared to usual care.
In an earlier report, PHTI poured cold water on the effectiveness of widely used digital diabetes management solutions, stirring up discussion about how best to evaluate the growing market of digital health tools.
Last year, there were several healthcare and health tech IPOs. Healthcare payment software maker Waystar debuted on the public market in June, raising $967.5 million and marking the biggest health tech IPO since 2022. Tempus AI, a precision medicine company, also went public in June and raised $410.7 million.
BrightSpring Health, a home- and community-based healthcare services provider, went public in January.
Hospital operator Ardent Health raised $192 million in an IPO in July. And KindlyMD, which provides telemedicine services and digital health solutions, completed its IPO in May raising $6.8 million.
J.P.Morgan, Goldman Sachs, Morgan Stanley and Barclays are among the underwriters for Omada’s offering.
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