Despite concerns about valuations, the U.S. tech sector continues to remain in high demand. This is evidenced by a spate of recent IPOs that have been significantly oversubscribed, as well as the excitement surrounding some that are still to come.

After stablecoin issuer Circle Financial (CRCL), fintech company eToro (ETOR), and digital physical therapy startup Hinge Health (HNGE) have had successful debuts on the bourses in recent weeks, the latest to join this trend is Omada Health (OMDA).

About Omada Health

Founded in 2011, Omada Health is a virtual-first care platform helping users manage chronic conditions such as prediabetes, diabetes, hypertension, musculoskeletal (MSK) issues, and behavioral health through coaching, connected devices, and personalized digital tools. It has the first fully digital MSK whole-person care accredited by the nonprofit Utilization Review Accreditation Commission (URAC) and the first virtual diabetes program with formal recognition from the National Committee for Quality Assurance (NCQA) and CDC.

For its IPO, the company offered 7.9 million shares at $19 per share. As per its S-1 filing, the company intends to use the net proceeds from the IPO for general corporate purposes, including working capital, operating expenses, and capital expenditures. The company raised $150 million from the debut.

Significant backers of the company included Revelation Partners (10.9%), U.S. Venture Partners (9.9%), Andreessen Horowitz (9.6%), and FMR (9.3%).

Shares of Omada Health made their public debut on the Nasdaq Exchange on Friday, June 6, opening at $23 apiece. During the session, the stock climbed to an intraday high of $28 before retreating to close back at $23. However, the stock is currently trading below $16, down more than 12% in trading on June 11. 

Not Profitable (But on the Right Path)

Not unlike many other tech upstarts, Omada is also yet to touch the promised land of profitability. But it is on the right path. 

In 2024, Omada reported revenues of $169.8 million, which denoted growth of 38.3% from 2023’s figure of $122.8 million. This growth was primarily driven by its core Services business, which clocked revenues of $157.8 million, up from $114.5 million in the year-ago period. 

Net losses per share narrowed to $2.03 per share from $3.17 in the prior year. 

Net cash used in operating activities also dropped to $34.2 million in 2024 from $49.7 million in 2023 which is a positive development as it indicates Omada is moving toward positive cash flow from its operations, although there is still a long way to go. Overall, the company closed the March 2025 quarter with a cash balance of $59.4 million, much higher than its long-term debt levels of $29.9 million.

Meanwhile, it has steadily grown total members on its platform. From 299,000 members at the end of 2022, the end of Q1 2025 has seen Omada more than doubling its number of members to 679,000. 

Moreover, for Q1 2025, Omada’s revenues were at $55 million compared to $35.1 million in the year-ago period, and losses narrowed to $0.38 per share from $0.84 in the prior year

Making the Right Moves

The virtual healthcare market is projected to reach a value of $76.9 billion by 2030, a considerable rise from just $8.4 billion in 2022. Although the space is filled with tough competition, Omada’s unique offerings gives it an edge to capture a material share of this growing market.

With a potential patient population of more than 150 million eligible individuals in the United States, cardiovascular diseases remain one of the most widespread and persistent health challenges. While these patients often receive sound medical advice during consultations, there is a noticeable gap in consistent follow-up and ongoing support after leaving the doctor’s office. Omada seeks to address this unmet need by concentrating on the critical “between-care” period, which involves bridging patients and healthcare professionals during the intervals when traditional care systems tend to lose visibility.

To enable this, Omada offers a technology-driven wellness framework built on virtual healthcare services, a dedicated mobile application, and access to a coordinated care team. Its offerings are largely geared toward supporting workforce health, with the company distributing its solution both through direct enterprise sales and collaborations with ecosystem allies such as health insurers, pharmacy benefit managers, and platforms that provide well-being or benefits navigation services.

According to the company, it has established partnerships with more than 2,000 organizations across employers, insurers, and pharmacy benefit administrators. It reports a customer satisfaction rate exceeding 90%, with a three-year average retention rate also surpassing 90%. Noteworthy alliances include relationships with major pharmacy benefit managers like CVS (CVS) and Cigna (CI), the latter of which has also backed Omada through its corporate venture capital division.

Looking ahead, Omada’s expansion blueprint emphasizes broadening its channel relationships to incorporate government-sponsored programs, driving higher member sign-ups and sustained engagement, and continuously evolving its chronic care solutions to adapt to changing client demands in virtual health management.

Final Take

Omada is operating in a growing market and has identified a gap in that market. With over 1 million members enrolled and a customer retention rate of 90%, it would be safe to say that Omada’s platform has gained traction among its users. 

Moreover, with its integrated approach across multiple chronic conditions, recognized accreditations, extensive distribution partnerships, and ongoing advancement in artificial intelligence capabilities, Omada is well-positioned to carve out a prominent role within the digital health landscape.