Omada’s health file to be published amid a virtual care startup IPO drought

Virtual care provider Omada Health has been published and joined a small group of digital health companies willing to test the volatile IPO market.

Founded in 2012, the San Francisco-based health technology startup offers virtual care programs for chronic diseases such as diabetes, hypertension and prediabetes. It supports patients outside the traditional clinic structure and works with primary care to occupy its position as a “inter-visit care model.” Omada offers the program through its employer, health plans and health systems, and has billed more than 2,000 customers and 679,000 members at the end of the first quarter.

“Omada Health, the latest digital health company, applied for an IPO on Friday to announce its intention to make a leap during the open market turbulence period,” CNBC reported.

The company generated revenue of $169.8 million in 2024, up 38% from the previous year. In the first quarter of this year alone, revenues rose 57% to $55 million. Losses are also shrinking. It fell from $19 million at the same time last year to $9.4 million in the first quarter. Overall in 2024, Omada reported a net loss of $47.1 million compared to $67.5 million in 2023.

Omada Health IPO Filing: Digital Health Farms are making a big bet on the chronic care market

With over 156 million Americans living with at least one chronic illness, Omada bets on the growing demand for scalable, virtual care, especially among employers who are pressured to cut healthcare costs. The startup offers personalized care plans that combine clinical support with behavioral health programs. This was the first virtual provider to join Healthcare Improvement’s Leadership Alliance Institute, and would like to be seen as part of a traditional healthcare system, not as a replacement.

Omada’s supporters include well-known investors such as Andreessen Horowitz, Fidelity’s FMR LLC, and US venture partners.

Submitting an IPO comes at a strange time. Klarna and Stubhub put their plans on ice. Changes in tariff policy and concerns about inflation have made public debut even more risky. Still, Omada doesn’t just move forward. In March, Hinge Health (another digital health player focusing on physiotherapy) was published and updated investors with fresh revenue.

“Thank you to our future shareholders for learning more about Omada and encourage us to take part in our journey,” co-founder and CEO Sean Duffy said in a submission. “In front of you is a unique opportunity to build a promising and successful business while truly changing your life.”