Digital health Startup Omada Health targets $1.1B valuation in IPO as virtual care rebounds

Just two weeks after virtual care provider Omada Health filed to go public in a bid to test the shaky IPO market, the company now plans to raise up to $158 million in its offering, potentially reaching a $1.1 billion valuation at the high end of its price range, according to an updated filing on Thursday.

The San Francisco–based startup, known for its digital programs for chronic conditions like prediabetes, diabetes, and hypertension, is pricing shares between $18 and $20. It plans to offer 7.9 million shares on the Nasdaq under the ticker “OMDA.” The total valuation could end up higher depending on final pricing and share dilution.

This marks a notable moment for the digital health space, which has been relatively quiet on the IPO front. Hinge Health, a digital physical therapy startup, broke the silence with its debut earlier this month. Omada’s IPO now follows closely behind, signaling renewed interest in tech-enabled care models.

Omada isn’t new to the scene. The company was founded in 2012 by Sean Duffy, Andrew DiMichele, and Adrian James — the latter two have since moved on. Duffy remains CEO and pitched the company’s IPO as a chance for new investors to join the next phase of growth. “To our prospective shareholders, thank you for learning more about Omada,” he wrote in the filing. “I invite you to join our journey.”

The company offers virtual care programs for chronic conditions like diabetes, hypertension, and prediabetes. It positions itself as a “between-visit care model,” supporting patients outside the traditional clinic structure and working alongside primary care. Omada delivers its programs through employers, health plans, and health systems, claiming over 2,000 customers and more than 679,000 members as of the end of Q1.

The startup describes its model as “between-visit care,” positioning itself as a layer that complements rather than replaces traditional healthcare providers.

Financially, Omada’s been growing steadily. First-quarter revenue jumped 57% year-over-year to $55 million, up from $35.1 million. The company generated $169.8 million in revenue in 2024, representing a 38% increase from the previous year, CNBC reported.

In the first quarter of this year alone, revenue jumped 57% to $55 million. Losses are narrowing too, down to $9.4 million in Q1 from $19 million at the same time last year. For 2024 overall, Omada reported a $47.1 million net loss, compared to $67.5 million in 2023.

The IPO is being led by Morgan Stanley, Goldman Sachs, and JPMorgan Chase. Backers include heavyweights like Andreessen Horowitz, Fidelity, and U.S. Venture Partners.

With more than 156 million Americans living with at least one chronic condition, Omada is betting that demand for scalable, virtual care will grow, especially among employers under pressure to cut healthcare costs. The startup offers personalized care plans that combine clinical support with behavioral health programs. It was the first virtual provider to join the Institute for Healthcare Improvement’s Leadership Alliance, a signal that it wants to be seen as part of—not a replacement for—the traditional healthcare system.

Omada’s backers include big-name investors like Andreessen Horowitz, Fidelity’s FMR LLC, and U.S. Venture Partners, each of whom owns close to 10% of the company.

The IPO filing comes at a strange time. Klarna and StubHub have put their plans on ice. Tariff policy changes and inflation concerns have made public debuts even riskier. Still, Omada isn’t alone in moving forward. In March, Hinge Health—another digital health player focused on physical therapy—filed to go public and just updated investors with fresh earnings, a sign it’s still on track.

Whether this offering will draw the same investor enthusiasm seen during the digital health boom remains to be seen. But for now, Omada is betting there’s still appetite for tech-driven care — and it’s stepping up to find out.