Shares in Omada Health (NASDAQ:OMDA) rose 21% in their Nasdaq debut on Friday, closing at US$23 after pricing at US$19 in the company’s initial public offering. The IPO raised approximately US$150 million and gave the virtual chronic care provider a valuation just over US$1bn on a non-diluted basis.
Founded in 2012, Omada offers digital care programs for chronic conditions including diabetes, hypertension, and prediabetes, and has recently expanded into weight management. Unlike many health tech competitors, Omada does not sell GLP-1 drugs but instead focuses on digital guidance and lifestyle support—a model CEO Sean Duffy says capital markets are rewarding for its differentiation and long-term sustainability.
Strong debut amid renewed tech IPO interest
Omada’s IPO comes amid renewed enthusiasm in the US tech listing space, following recent high-profile debuts including Hinge Health (NYSE:HNGE) and Circle Internet. Shares of Circle soared 168% in their own NYSE debut this week, suggesting a broad reopening of capital markets for growth-stage tech firms.
Omada sold 7.9 million shares in the offering, with shares trading as high as US$28.40 intraday before settling at US$23. The company is backed by major investors including US Venture Partners, Andreessen Horowitz, and Fidelity’s FMR LLC, each holding roughly 9–10% of outstanding shares.
Growth accelerates, losses narrow
Omada reported strong financial growth leading into its IPO. First-quarter 2025 revenue climbed 57% year-on-year to US$55m, while full-year 2024 revenue rose 38% to US$169.8m. Losses are narrowing: the company reported a US$9.4m net loss for Q1 2025, down from US$19m the prior year.
Still, the company remains unprofitable, with cumulative net losses of US$67.5m in 2023 and US$47.1m in 2024. Omada attributed this to substantial investment in its platform and clinical programs.
Strategic partnerships and market focus
Omada’s growth has been supported by partnerships with large employers and pharmacy benefit managers, including CVS Health (NYSE:CVS) and Cigna (NYSE:CI), the latter of which is also an investor. The company also works with Abbott (NYSE:ABT), integrating its digital platform with Abbott’s Freestyle Libre glucose monitors.
While some competitors have leaned heavily on GLP-1 drugs, Duffy has emphasised that Omada’s strength lies in its ability to deliver scalable clinical coaching and behavioural support—an approach he argues is more resilient and cost-effective in the long term.
