Omada Health, a virtual chronic care provider, plans to raise $158 million through its IPO, potentially valuing the company at $1.1 billion.

In an updated IPO prospectus filed Thursday, Omada announced it will offer 7.9 million shares at a price range of $18 to $20 each. The company filed to go public on May 9, becoming the second digital health IPO of 2025, following Hinge Health. It will trade on the Nasdaq under the ticker “OMDA.”

Founded in 2012, Omada started with a virtual diabetes prevention and weight health program. It now serves over 2,000 customers and has enrolled more than 679,000 members. Its programs have expanded to cover prediabetes, hypertension, musculoskeletal conditions, and GLP-1-based obesity care.

Omada combines clinical care with proprietary technology in what it calls “Compassionate Intelligence,” aiming to personalize virtual care at scale. It also recently partnered with Amazon to provide virtual chronic condition management services.

Revenue grew 38% year-over-year, from $123 million in 2023 to $170 million in 2024. Q1 2025 revenue hit $55 million, up 57% from Q1 2024. Losses narrowed from $67.5 million in 2023 to $47 million in 2024, and to $9.4 million in Q1 2025.

Omada’s go-to-market strategy targets employers, health plans, PBMs, and increasingly, Medicare Advantage and government buyers. It estimates around 20 million people have access to its programs—just a fraction of the total addressable market.

Despite clinical and cost-saving claims, the company and peers have faced scrutiny. The Peterson Health Technology Institute has questioned the impact of some digital tools, including Omada’s, on outcomes like blood pressure.

Still, Omada touts a 90% average three-year customer retention rate and 29 peer-reviewed publications supporting its outcomes. It says its diabetes program can save employers up to $3,900 per member over three years.

The IPO is being underwritten by J.P. Morgan, Goldman Sachs, Morgan Stanley, and Barclays.

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