Explosive Growth Despite Lack of Profit
Omada’s trajectory has been steep. Its revenue climbed 38% year-over-year to $169.8 million, according to its SEC registration statement. Despite strong growth, the company remains unprofitable—a common trait among health tech firms leveraging massive upfront investments to capture long-term market share.
Its backers include venture titans U.S. Venture Partners, Andreessen Horowitz, and Revelation Partners. The company last raised capital in a $192 million Series E round in 2022.
Now, with over 2,000 enterprise clients—from boutique health plans to Fortune 500 behemoths—Omada is poised to leverage IPO proceeds to fuel expansion. Plans include working capital infusion, debt repayment, and potential acquisitions in a rapidly consolidating health tech market.
IPO Structure and Legal Teams
Underwriters, led by Morgan Stanley, Goldman Sachs, and J.P. Morgan, hold a 30-day option to purchase an additional 1.185 million shares, potentially raising total proceeds to $172.6 million.
Omada’s legal firepower includes Latham partners Kathleen Wells and Richard Kim, while underwriters rely on Davis Polk partners Alan Denenberg and Emily Roberts.
An Omada spokesperson declined to comment on the IPO Thursday.
