Omada Health Raises $150 Million in IPO, Begins Trading Under ‘OMDA’

Omada Health, a virtual chronic care provider, priced its initial public offering at $19 per share, landing at the midpoint of its $18 to $20 per share range. The company raised $150 million through the sale of 7.9 million shares of common stock. It also granted underwriters a 30-day option to purchase up to an additional 1.185 million shares at the offering price, excluding underwriting discounts and commissions. The IPO valued Omada at roughly $1.1 billion.

Shares began trading today on the Nasdaq Global Market under the ticker symbol “OMDA.” The stock opened at $23, a 21% increase from its offer price, pushing Omada’s market value to $1.28 billion. This marks the second digital health IPO of 2025, following Hinge Health’s listing two weeks earlier.

Founded in 2012, Omada launched its first virtual care program focused on diabetes prevention and weight management. The company currently serves over 2,000 customers, with more than 679,000 active members enrolled in at least one of its programs. Since launch, Omada reports having supported more than one million members.

Its services have since expanded to include virtual care for prediabetes, hypertension, and musculoskeletal conditions. An additional program focuses on GLP-1 medications, combining clinical oversight and lifestyle interventions to support weight loss and obesity-related care. Describing its methodology, the company noted that its virtual care model is built on evidence-based practices that integrate human-led clinical care with technology: “We call this approach Compassionate Intelligence. We work to develop trust with each member and use technology to help us personalize their experience, enabling us to unlock results at scale.”

Omada submitted a draft registration statement to the U.S. Securities and Exchange Commission in June 2023. It has raised over $500 million to date, including $192 million in a February 2022 Series E funding round, which elevated the company to unicorn status.

The company generates most of its revenue through employer contracts and partnerships with health plans and PBMs. Additional income stems from fully insured health plans, PBM therapeutic programs, and health systems. In 2024, 69% of Omada’s revenue came from its top five partners. In the first quarter of 2025, two affiliates of The Cigna Group accounted for a combined 60% of its revenue.

Revenue grew from $123 million in 2023 to $170 million in 2024. In Q1 2025, the company reported $55 million in revenue, up from $35 million a year earlier. Net losses decreased from $67.5 million in 2023 to $47 million in 2024 and stood at $9.4 million for the first quarter of 2025.

Omada estimates that 20 million individuals have benefits coverage for at least one of its programs. It maintains a 90% three-year average customer retention rate and cites 29 peer-reviewed publications supporting its clinical and economic outcomes. In early 2024, Amazon partnered with Omada to offer virtual care services for managing chronic conditions.