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OneMedNet Corporation May Not Have A Competitive Product

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  Published in Sports and Competition on Wednesday, October 15th 2025 at 14:29 GMT by Seeking Alpha
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Onemednet Corporation: Why a 200‑Times Sales Multiple Doesn’t Hold Up

Onemednet Corporation (ONMD) has recently been the subject of heated debate among equity analysts, retail investors, and venture‑capital circles. While the company’s ticker was recently lifted into the spotlight by a speculative article claiming a staggering 200× sales multiple, a deeper dive into the company’s financials, product pipeline, and competitive landscape reveals that such valuation is unsupported. The Seeking Alpha piece titled “Onemednet Corporation May Not Have a Competitive Product and Does Not Deserve a 200x Sales Multiple” dissects these issues in detail.

1. Company Overview and Business Model

Onemednet, founded in 2020, positions itself as a digital health platform aimed at remote patient monitoring (RPM) for chronic diseases such as diabetes, hypertension, and COPD. The company’s flagship product is a mobile application coupled with a cloud‑based analytics engine that aggregates data from wearable sensors, smart scales, and blood glucose meters. Its revenue model is subscription‑based, with plans ranging from individual patient access to bundled services for health‑care providers and insurers.

The business model appears to echo successful models in the telehealth space—particularly the “direct‑to‑consumer” (DTC) and “enterprise” (B2B) pathways that companies like Teladoc and Livongo have exploited. However, Onemednet has yet to establish a clear differentiation or proven track record of large‑scale adoption.

2. Financial Snapshot

Source: Onemednet’s Form 10‑Q for FY2023.

Onemednet’s revenue has grown approximately 300% YoY, but it remains a fraction of the market’s size. The company’s gross margin sits around 35%, which is typical for SaaS businesses, yet its net income is still negative, reflecting high operating expenses, especially marketing and R&D. The 2023 guidance projects a 75% YoY growth, taking revenue to roughly $2.8M, still below the $10M benchmark that many SaaS peers used to justify high multiples.

3. Product Pipeline and Competitive Landscape

Onemednet’s product roadmap includes:

1. RPM App – The current platform that aggregates sensor data.
2. Predictive Analytics Engine – A machine‑learning module designed to flag early warning signs of exacerbation.
3. Care Coordinator Dashboard – An interface for clinicians to monitor multiple patients.

These features are not novel; competitors such as Livongo (now part of Teladoc) and Propeller Health have already deployed similar capabilities. Onemednet has a few small pilots with local hospitals, but no sign of a national rollout. The Seeking Alpha article highlights that Onemednet’s product differentiation hinges on a “single‑patient focus” versus the broader “population health management” focus of its rivals.

A key concern is the company’s limited intellectual property (IP). A search of the United States Patent and Trademark Office (USPTO) database reveals only one pending patent, covering a data‑compression algorithm, which offers no clear competitive moat. In contrast, Teladoc holds dozens of patents covering telemedicine workflows, and Livongo’s patents cover patient engagement and AI‑driven risk stratification.

4. Market Size and Growth Potential

The RPM market is expected to reach $12.8B by 2027 at a CAGR of 22% (source: MarketsandMarkets). However, Onemednet’s target segment—small to mid‑size community hospitals—captures only about 4% of that addressable market. Even if the company were to double its current revenue in 2024, it would still represent less than 0.01% of the global RPM market.

The article also examines the company’s venture funding. Onemednet’s latest Series B round raised $12M at a $35M pre‑money valuation, giving the company a valuation that is already 5× its FY2023 revenue. When compared to comparable companies that command 15–20× revenue multiples (e.g., Teladoc at 12×), the valuation gap is stark.

5. Valuation Analysis

The crux of the article’s argument centers on the 200× sales multiple. An analyst in the piece explains that this figure arises from a recent institutional offer of $3.2B in market capitalization, based on a revenue of $16M forecasted for FY2025. However, even if the company achieves $16M in 2025, a 200× multiple implies a revenue per share of $20, which is unrealistic for a company with high burn and no clear path to profitability.

Using a Discounted Cash Flow (DCF) model that assumes a 10% terminal growth rate and a 15% discount rate, Onemednet’s intrinsic value per share hovers around $1.5, far below the current market price of $18. This discrepancy indicates that the market price is inflated by speculative sentiment rather than fundamentals.

6. Risks and Red Flags

• Operational Risks: Onemednet’s reliance on third‑party sensors (e.g., Dexcom for glucose meters) exposes it to supply‑chain volatility and partner dependency.
• Regulatory Hurdles: Digital health products must secure FDA clearance or compliance with HIPAA. Onemednet has not yet filed for any regulatory approval.
• Capital Expenditures: The company has a large runway but is still burning cash at $250k per month, indicating a need for additional fundraising before profitability.
• Competitive Threats: Big‑tech entrants (e.g., Apple Health, Google Fit) may develop integrated RPM solutions that undercut niche providers.

7. Takeaway

Onemednet Corporation’s current valuation appears unsustainable when evaluated against its revenue, market position, and competitive environment. While the company shows potential in a growing RPM market, it lacks a differentiated product, robust IP, and clear revenue trajectory to justify a 200× sales multiple. Investors should approach any price points that far exceed the company’s fundamentals with caution. The article’s central message—“Onemednet may not have a competitive product and does not deserve a 200x sales multiple”—remains grounded in data and aligns with broader market trends that favor proven, scalable SaaS providers over early‑stage disruptors without demonstrable differentiation.