Omada, a Virtual Chronic Care Provider, Goes Public

Omada Health went public on June 6, 2025 (Nasdaq), one of the few recent IPOs to achieve a valuation above its last private funding round.

As of 2022, over 156M Americans were living with one or more chronic conditions, such as obesity, prediabetes, diabetes, hypertension, and musculoskeletal disorders. Nearly 40% of US adults suffered from two or more.

But it doesn’t have to be this way.

Many chronic conditions are preventable or manageable at a more reasonable cost. Yet the US healthcare system, built around encounter-based reimbursement, primarily pays for isolated services as problems arise — leaving patients to navigate their conditions alone between brief, infrequent doctor visits.

Lifestyle change is difficult. Sustained behavior change is even harder.

Omada was built to make it easier — to bend the curve of chronic disease by helping people change habits and manage conditions like obesity, diabetes, hypertension, and musculoskeletal issues more effectively.

Omada’s virtual care programs are grounded in clinical evidence and blend relationship-based, human-led care with purpose-built technology. Omada sells its solutions to employers, who cover the cost for eligible employees.

Its first program, focused on diabetes prevention and weight management, was launched in 2012. Fabrica Ventures invested in the company in 2021.

The numbers are impressive: over 20M covered lives, more than 2K customers, and 1M enrolled members. The company boasts a 118% net dollar retention rate, with 9.7M pounds lost, 149M meals tracked, 738B steps counted, 78M blood glucose readings, and 5.4M “thank you”s.

Revenue grew 38%, from $123M in 2023 to $170M in 2024. However, the company remains unprofitable, posting a net loss of $47M in 2024. Gross margins stand at 61%.

Conclusion

It seems the IPO window is reopening, despite current interest rates still weighing on valuations and healthcare enthusiasm staying low.

More importantly, Omada Health’s IPO reinforces that fast-growing startups with $200M+ in revenue are indeed IPO-material.