After a prolonged IPO hiatus in the digital health sector, companies like Hinge Health and Omada Health have successfully gone public this year. This resurgence follows a disappointing wave of IPOs in 2021. Panel discussions at AHIP 2025 highlighted that while investor enthusiasm has returned, the focus remains on sustainable business models balancing growth and profitability. Investors caution that past performance issues in the sector have raised the bar for new IPOs, emphasizing the importance of solid financials for success in the public markets.
You still need to come out with a solid business and [profit and loss], and there's always that kind of trade off between growth and profitability that public markets are looking at.
Many of these companies have since underperformed. This made it difficult for other companies to go public in the years following.
I think it's hugely positive now that we have Hinge and Omada that just went out. That being said, the bar is super high.
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