Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Bottom-Up

<ul>
<li>San Francisco-based Omada Health reported stronger than expected 2Q’FY25 revenues of $61.4M as a public company. Management provided FY25 revenue and adj. EBITDA guidance.</li>
<li>In May, Omada Health announced a new AI-agent, OmadaSpark. A member-facing AI agent directly works with Omada members. It was trained on ~3M foods and dishes.  </li>
<li>The company expects adj. EBITDA loss in the range of $9M to $5M in FY25. I forecast FCF losses to steadily dissipate until Omada Health becomes FCF positive in FY26.</li>
</ul>


San Francisco-based Omada Health reported stronger than expected 2Q’FY25 revenues of $61.4M as a public company. Management provided FY25 revenue and adj. EBITDA guidance.
In May, Omada Health announced a new AI-agent, OmadaSpark. A member-facing AI agent directly works with Omada members. It was trained on ~3M foods and dishes.  
The company expects adj. EBITDA loss in the range of $9M to $5M in FY25. I forecast FCF losses to steadily dissipate until Omada Health becomes FCF positive in FY26.


Omada Health: 2Q’FY25 Net Loss Narrowed, Strong Progress Towards Adj. EBITDA Profitability

US IPOs and Secondary Offerings, IPO Boutique

IPO Boutique

US IPOs and Secondary Offerings

For more than 20 years, we have been providing research, analysis, commentary and ratings on US Equity Capital Markets to institutional investors (US IPOs and Secondary Offerings). Our vast network of contacts across the Equity Capital Markets and attention-to-detail sets us apart from our competitors.

Since 2012, we have achieved a successful hit rating on 89% of Buy-rated IPOs. The collective “Buy” ratings averaged a first trade of 16.3% above issue.Our Neutral Rated Deals averaged just 2% above the issue price at first trade.

Our written research includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

In addition, we provide a high-touch premium desk access which includes analyst access, as well as real time insights on US IPOs as well as secondary offerings.

IPOs and Secondary Offerings

Equity Capital Markets

<ul>
<li>`Omada Health, Inc. (OMDA) priced a full-size deal of 7.9mm shares at $19.00 (midpoint of the range) and opened at $19.00 for a gain of 21% at first trade.</li>
<li>Omada finished north of 15-times oversubscribed with allocations highly concentrated and skewed to long-only investors.</li>
<li>Our sources stated that the top ten accounts took greater than 50% of the deal and the top 25 took 80% of the transaction.</li>
</ul>


`Omada Health, Inc. (OMDA) priced a full-size deal of 7.9mm shares at $19.00 (midpoint of the range) and opened at $19.00 for a gain of 21% at first trade.
Omada finished north of 15-times oversubscribed with allocations highly concentrated and skewed to long-only investors.
Our sources stated that the top ten accounts took greater than 50% of the deal and the top 25 took 80% of the transaction.


Omada Health (OMDA): Virtual Healthcare Provider Pops 20% After Midpoint Pricing

<ul>
<li>Omada Health is expected to IPO this week. The company’s amended prospectus puts the expected price range per share at $18 to $20, implying a market cap of ~$1.1B.</li>
<li>Omada Health is a virtual-first healthcare provider, supporting people with chronic conditions: prediabetes, diabetes (T2D), hypertension, obesity and musculoskeletal.</li>
<li>A digital care provider stayed private for longer. Its direct competitor, Livongo Health, went public in 2019 and was acquired by Teladoc Health for ~$18.5B in 2020.</li>
</ul>


Omada Health is expected to IPO this week. The company’s amended prospectus puts the expected price range per share at $18 to $20, implying a market cap of ~$1.1B.
Omada Health is a virtual-first healthcare provider, supporting people with chronic conditions: prediabetes, diabetes (T2D), hypertension, obesity and musculoskeletal.
A digital care provider stayed private for longer. Its direct competitor, Livongo Health, went public in 2019 and was acquired by Teladoc Health for ~$18.5B in 2020.


Omada Health IPO: Stayed Private For Longer, Modest Upside Potential

<ul>
<li>The valuation of the company based on Q1 2025 revenues is between 5-6x sales which we find attractive versus peers.</li>
<li>Revenue increased  by 57% from $35.1 million to $55.0 million for the three months ended March 31, 2024 and 2025, respectively. </li>
<li>After a handful of days of marketing the IPO, we are hearing from our sources that the books are multiple-times oversubscribed.</li>
</ul>


The valuation of the company based on Q1 2025 revenues is between 5-6x sales which we find attractive versus peers.
Revenue increased  by 57% from $35.1 million to $55.0 million for the three months ended March 31, 2024 and 2025, respectively. 
After a handful of days of marketing the IPO, we are hearing from our sources that the books are multiple-times oversubscribed.


Omada Health (OMDA): Virtual Healthcare Provider Gains IPO Momentum Behind Success of Peer

<ul>
<li>After the success of Hinge Health, Omada Health is now testing the IPO waters. </li>
<li>Omada Health set terms with the SEC on Thursday morning for its IPO and will offer 7.9mm shares at $18-$20 with a debut date of Friday, June 6th. </li>
<li>The size of the transaction is manageable and the company is backed by major VC players in the industry. </li>
</ul>


After the success of Hinge Health, Omada Health is now testing the IPO waters. 
Omada Health set terms with the SEC on Thursday morning for its IPO and will offer 7.9mm shares at $18-$20 with a debut date of Friday, June 6th. 
The size of the transaction is manageable and the company is backed by major VC players in the industry. 


Omada Health (OMDA): Second Virtual Healthcare Provider Ready to Test the IPO Market

United States

Hinge Health, Inc. develops health care software. The Company offers remote monitoring and digital care solutions to improve patient education, monitor physical and behavioral therapy, and address a broad spectrum of MSK care. Hinge Health serves customers in the United States.

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Hinge Health (HNGE US)

Omada Health: 2Q’FY25 Net Loss Narrowed, Strong Progress Towards Adj. EBITDA Profitability

Omada Health, a next-gen digital health provider, announced strong 2Q'FY25 results. Revenue grew 49% y/y, total members increased to ~752,000...

Andrei Zakharov

Omada Health (OMDA): Virtual Healthcare Provider Pops 20% After Midpoint Pricing

Omada Health's IPO priced at $19 per share, opening at the same price with a 21% gain. Allocation was highly concentrated, with top ten accounts...

IPO Boutique

Omada Health IPO: Stayed Private For Longer, Modest Upside Potential

Omada Health, a virtual healthcare provider for chronic conditions, set to IPO with expected price range of $18 to $20 per share, aiming for a...

Andrei Zakharov

Omada Health (OMDA): Virtual Healthcare Provider Gains IPO Momentum Behind Success of Peer

Company's valuation based on Q1 2025 revenues is attractive at 5-6x sales, with revenue increasing by 57% and IPO books reported as oversubscribed.

IPO Boutique

Omada Health (OMDA): Second Virtual Healthcare Provider Ready to Test the IPO Market

Omada Health, backed by some highly notable VCs, set terms for IPO offering 7.9mm shares at $18-$20, debuting on June 6th.

IPO Boutique

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Omada Health: 2Q’FY25 Net Loss Narrowed, Strong Progress Towards Adj. EBITDA Profitability

Omada Health, a next-gen digital health provider, announced strong 2Q'FY25 results. Revenue grew 49% y/y, total members increased to ~752,000...

Andrei Zakharov

Omada Health (OMDA): Virtual Healthcare Provider Pops 20% After Midpoint Pricing

​Omada Health's IPO priced at $19 per share, opening at the same price with a 21% gain. Allocation was highly concentrated, with top ten accounts...

IPO Boutique

Omada Health IPO: Stayed Private For Longer, Modest Upside Potential

​Omada Health, a virtual healthcare provider for chronic conditions, set to IPO with expected price range of $18 to $20 per share, aiming for a...

Andrei Zakharov

Omada Health (OMDA): Virtual Healthcare Provider Gains IPO Momentum Behind Success of Peer

​Company's valuation based on Q1 2025 revenues is attractive at 5-6x sales, with revenue increasing by 57% and IPO books reported as oversubscribed.

IPO Boutique

Omada Health (OMDA): Second Virtual Healthcare Provider Ready to Test the IPO Market

​Omada Health, backed by some highly notable VCs, set terms for IPO offering 7.9mm shares at $18-$20, debuting on June 6th.

IPO Boutique

Omada Health's IPO priced at $19 per share, opening at the same price with a 21% gain. Allocation was highly concentrated, with top ten accounts...

Omada Health, a virtual healthcare provider for chronic conditions, set to IPO with expected price range of $18 to $20 per share, aiming for a...

Company's valuation based on Q1 2025 revenues is attractive at 5-6x sales, with revenue increasing by 57% and IPO books reported as oversubscribed.

Omada Health, backed by some highly notable VCs, set terms for IPO offering 7.9mm shares at $18-$20, debuting on June 6th.