Virtual-Care Company Omada Files IPO Papers

May 20, 2025

The 14-year-old company finished March with 679,000 people enrolled in at least one of its plans, a 47 percent increase from a year earlier.

Geert De Lombaerde

Virtual-care venture Omada Health Inc. has filed papers to sell its shares to the public for the first time and fund its growth plans.

San Francisco-based Omada was founded in 2011 and today markets services focused on prediabetes, diabetes, obesity, hypertension and musculoskeletal conditions. The company partners with insurers and pharmacy benefit managers to run its care programs and has amassed a client base of more than 2,000 employers, health systems and other entities.

In the prospectus for the company’s initial public offering, co-founder and CEO Sean Duffy wrote that he and co-founders Adrian James and Andrew DiMichele started Omada “to be the anti-pamphlet,” complementing primary care systems and focusing on what patients do between trips to physician offices.

“Doctors do their best in the narrow window of a visit to inspire change and improve health, but they are unable to do much for patients between visits—which is where most of life happens,” Duffy wrote.

At the end of March, more than 679,000 people were enrolled in one or more Omada programs. That was up 47 percent year over year and more than double the company’s count at the end of 2022.

Omada grew to nearly $170 million in revenues last year—with about 70 percent of that coming from or through its top five insurer and PBM partners—versus $123 million in 2023 and narrowed its net loss to $47.1 million from more than $67 million. In the first three months of this year, its bottom line improved further to a net loss of $9.4 million, half that of the same period in 2024, as sales grew to $55.0 million from $35.1 million.

Duffy and his team have a tight relationship with The Cigna Group and its Evernorth arm: Via a series of contracts, Cigna made payments worth nearly $90 million to Omada in 2024. Cigna’s corporate venture capital group also owns 7.2 percent of Omada.

Other notable investors in Omada include Revelation Partners, U.S. Venture Partners, Andreesen Horowitz and FMR, the parent company of Fidelity Investments. Those firms all own between 9 percent and 11 percent of the company.

Word of Omada’s plans to go public comes as Hinge Health Inc., a competitor in the market for virtual-care programs for musculoskeletal conditions, is preparing to put a bow on an IPO that is aiming to raise about $400 million for the company.

Details of Omada’s planned IPO, such as the number of shares it aims to sell and the amount of funding it hopes to raise, haven’t yet been finalized. The cadre of investment banks bringing Omada to market is led by Morgan Stanley, Goldman Sachs and J.P. Morgan.