Virtual Care Firm Omada Health Leverages GLP-1 Trend For $150 Million NASDAQ Debut

Omada Health, Inc. (NASDAQ:OMDA) closed its first day of trading at $23 per share on Friday, a 21% jump from the IPO price of $19 per share.

On Thursday, Omada Health priced its initial public offering of 7.9 million at $19/share. The company filed its initial prospectus in May and updated the document with an expected pricing range of $18 to $20 per share. 

The company raised $150 million in its IPO. Reuters reported Omada Health’s valuation hit $1.28 billion.

Omada’s revenue increased 57% in the first quarter of 2025 to $55 million from $35.1 million a year earlier, according to its prospectus. For 2024, revenue rose 38% to $169.8 million from $122.8 million the previous year.

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The company’s net loss narrowed to $9.4 million in the first quarter from $19 million a year ago.

Omada launched its initial virtual program in diabetes prevention and weight health in 2012.

The company delivers virtual care between doctor visits, providing an engaging, personalized, and integrated experience for members designed to improve their health while delivering value for employers, health plans, health systems, pharmacy benefit managers (PBMs), and other entities that cover the cost of programs.

According to its S-1 filing, the company had 2,000 customers and more than 679,000 members enrolled in one or more programs as of 31 March. Omada says it has supported more than 1 million members since its launch.

The company expanded its virtual care programs to target prediabetes, hypertension, and musculoskeletal conditions.

The company estimates that about 20 million people have benefits coverage for one or more Omada programs. According to the company’s S-1 filing, this represents about 14% of the self-insured insurance market, 9% of the fully insured market, 1% of the Medicare Advantage market, and 1% of the PBM market.

Wall Street Journal, citing President Wei-Li Shao, writes that Omada leadership sees the current moment as the perfect time for an IPO, as GLP-1 drugs such as Ozempic, Wegovy, and Mounjaro have sparked a renewed focus on health problems that can stem from obesity.

GLP-1s are expected to be a significant tailwind as more employers are rolling out reimbursement plans for the drugs, CEO Sean Duffy told WSJ. Omada, which signs contracts with employers to offer as a benefit to their workers, aims to be a complementary service that helps patients navigate taking GLP-1s.

Omada’s IPO is the second digital health IPO in weeks following an extended drought for the industry.

In May, digital physical therapy startup Hinge Health Inc. (NYSE:HNGE) debuted on the New York Stock Exchange. Hinge Health priced its IPO of 13.7 million shares at $32 per share.

Price Action: OMDA stock is trading lower by 0.43% to $22.90 premarket at last check Monday.

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