Omada Health IPO: Shares of digital platform for chronic patients become available

Shares of Omada Health, which provides digital health tools for patients with chronic diseases, have become available to investors on the Freedom trading system. The securities are listed under the ticker OMDA. They will appear on the Nadsaq exchange in a few hours. This listing - in line with other recent IPOs - signals a return of capital markets activity after months of slowdown, accounts Reuters.

California-based Omada Health raised $150 million in its IPO on the Nasdaq exchange, reports CNBC. The offering was priced at $19 per share - in the middle of its previously announced price range ($18-20). The company sold 7.9 million papers as part of the listing, as planned. Based on its volume and price, the capitalization of Omada Health is now about $1.1 billion.The organizers were Morgan Stanley, Goldman Sachs, JPMorgan, Barclays and Evercore.

The company's market value is roughly in line with its valuation from its last round of investment in 2022. At that time, it raised $192 million, giving it a «unicorn» status with a valuation of more than $1 billion. Omada's top investors include U.S. Venture Partners, Andreessen Horowitz and Fidelity, each holding 9-10% of its shares, CNBC points out. 

Omada Health delivers virtual health services for patients with chronic conditions. It describes its approach as a «care model between [doctor] visits» that complements the broader health care ecosystem. It describes its approach as a «care model between [doctor] visits» that complements the broader health care ecosystem;

The company was founded in 2012 in San Francisco -at that time it launched the first program for diabetes prevention and weight management. The platform now offers programs for patients with prediabetes, diabetes and hypertension, a physical therapy program for musculoskeletal disorders, behavioral health support and other services.

As of March 31, 2025, Omada had more than 2,000 customers and nearly 680,000 members enrolled in one or more programs, it said in its application for the IPO. The company has supported more than 1 million participants since launch. It estimates its market: one or more chronic diseases affected more than 156 million U.S. adults as of 2022, including 96 million with diabetes, and about 40% had two or more of them, according to the Annals of Bioethics & Clinical Applications. According to the CDC, chronic disease therapies accounted for 90% of annual U.S. medical spending in 2023 - $3.8 trillion, Freedom Broker wrote in its review.

Omada is not turning a profit. According to financial statements filed in the prospectus, its net loss last year was $47.1 million on revenue of $169.8 million. However, the company showed strong growth before its debut on the stock exchange: in the first quarter of 2025, its net loss halved to $9.4 million, compared to $19 million in the same period of 2024. Revenue in the first quarter jumped by almost 57% to $55 million.

Freedom Broker analyst Alem Bektemirov forecasts the company's total revenue to grow to $1.68 billion by 2034. He estimates that in 2025 the growth rate of the client base will be 41% with a further slowdown to 10% by 2034. The number of customers should thus increase to 4.3 million in ten years.

Bektemirov set the target on Omada shares at $25.4 - this implies the potential for growth by one third relative to the offering price. The valuation will also be affected if the company is unable to attract new participants and retain the current ones.

Freedom analyst also highlighted competition in the market as one of the major risks for Omada Health. The company is competing for customers with such players as Hello Heart, Lark Technologies, Livongo, Hinge Health and others.

This is the second listing in the digital health sector in the past few weeks after a long pause. Hinge Health, a digital physical therapy company, successfully debuted on the New York Stock Exchange in May. Its shares soared 17% on the first day of trading, and are now trading 20% above the offering price.

Last year, healthcare listings raised a total of $7.1 billion - up from $2.8 billion in 2023. And while U.S. President Donald Trump's volatile trade policies are weighing on markets, companies in sectors considered less vulnerable to economic turbulence continue to test investor interest with IPOs, CNBC reports;

Axios describes another important shift: over the past two years, most unicorns have been delaying IPOs in hopes of «growing up» to their low-rate valuations. Among other things, the publication says, they feared, that investors in the public markets would take the lower valuations as a sign of weakness and crash the stock price even further. Now that's changing there are companies «that have decided to stop circling the target endlessly,» and they «have been rewarded,» Axios notes. The publication mentions Hinge Health, as well as fintech company eToro, which also began trading last month.

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Freedom Broker clients will be able to trade in Omada Health shares before the opening of the main exchange session. Trading will begin in the early pre-market format 2-3 hours before the opening of the US exchanges (from 15:30-16:30 Astana time). To participate, click on ticker OMDA.US.