Omada Health launches IPO, aims to raise up to $158M

Virtual chronic care provider Omada Health has launched its initial public offering, with an anticipated price of between $18 and $20 per share. 

The company is offering 7.9 million shares of its common stock, allowing it to raise $142.2 million at the low end of its intended stock price and $158 million at the high end. It further intends to grant the underwriters a 30-day option to purchase up to an additional 1.18 million shares of common stock at the IPO price. The company will trade under the ticker symbol "OMDA" on the Nasdaq Global Market.

Omada Health offers digital health programs focused on prediabetes, diabetes, hypertension and musculoskeletal issues. The programs leverage telehealth and remote patient monitoring to provide what the company terms "between-visit care." According to the filing, between-visit care combines access to various professionals, including health coaches, physical therapists, education specialists and clinical social workers, with data from RPM devices, like blood pressure cuffs, digital scales and blood glucose monitors, to manage chronic conditions between clinic visits.

In the filing, the company states that it had more than 2,000 customers and over 679,000 total members enrolled as of March 31, 2025. It also noted that its revenue increased 38% from $122.8 million in fiscal year 2023 to $169.8 million in fiscal year 2024. However, the company also incurred net losses of $67.5 million and $47.1 million in 2023 and 2024, respectively.

The company stated that its "history of net losses" is "due in part to the significant investments we have made in the design and development of our programs and platform enhancements." As a result, Omada Health has "not yet achieved profitability on an annual basis."

Still, the company's customers include health systems like OhioHealth, health plans like HealthNet and Providence Health Plan, and retailers like Costco. Additionally, it was the first to partner with Amazon on its Health Conditions Programs, an initiative aimed at making it easier for healthcare consumers to identify and enroll in digital health programs.

The filing follows Hinge Health's IPO launch earlier this month. Hinge Health, a virtual musculoskeletal care and physical therapy provider, planned to offer an aggregate of 13.6 million shares of its Class A common stock at $28 to $32 per share. It raised $273 million when the stock debuted on the New York Stock Exchange last week, selling 8.52 million shares in the offering. Its stock sold for $37.56 to $39.25 a share, according to CNBC.

The filings indicate a potential rise in digital health IPOs. Following 2021, when 23 digital health companies went public, the IPO market stalled after many companies displayed disappointing public market performances. Whether 2025 represents a turnaround in the public market for digital healthcare remains to be seen.

Anuja Vaidya has covered the healthcare industry since 2012. She currently covers the virtual healthcare landscape, including telehealth, remote patient monitoring and digital therapeutics.