OneMedNet Faces Challenges with Non-Competitive Product and High Valuation

OneMedNet Corporation, a medical records data management company, delivers anonymized medical records to healthcare treatment developers and providers. Its main products include anonymized real-world medical records and imaging data. The company's financial performance may not justify its 200x sales multiple, as its products may not be competitive in the market.

OneMedNet Corporation (NASDAQ: ONMD), a medical records data management company, delivers anonymized real-world medical records and imaging data to healthcare treatment developers and providers. The company's primary products include iRWD (Real World Data) and BEAM, which facilitate the exchange of medical records for research purposes. Despite its growing iRWD revenues, the company's financial performance may not justify its 200x sales multiple due to potential competitive challenges and operational inefficiencies.

OneMedNet's iRWD product, which stores product developer data, has shown significant growth. In the first half of 2025, iRWD revenues grew by 39% year-over-year, reaching $108,000. However, the company's overall revenues have been decreasing on a trailing twelve-month basis due to the phase-out of the BEAM product, which was a marketplace for healthcare record owners to share or sell data. As of 2Q25, iRWD generated only $450,000 in annualized revenues, highlighting the product's small scale and potential lack of competitive advantages.

The company's operational losses have been substantial, with over $100 million in accumulated losses as of 2Q25. In the first half of 2025, operational losses were between $2 and $3 million per quarter. The majority of these losses are attributed to General and Administrative (G&A) expenses, which accounted for approximately 75% of operating expenses in FY24. This indicates that the company's expenses are not primarily invested in product development or sales, but rather in administrative functions.

OneMedNet's financial performance is further complicated by its reliance on equity financing. The company has issued a significant number of shares to finance its operations, resulting in a dilution of approximately 50% for original investors. As of 2Q25, the company's market capitalization was $136 million, with revenues of $600,000 per year. This results in a 225x sales multiple, which may be overvalued given the company's history of losses and lack of cost control.

The absence of significant M&A activity involving OneMedNet and the company's lack of traction in the market raise questions about its competitive advantages. The healthcare and medical imaging AI market is substantial, with a value of over $7 billion yearly. However, OneMedNet has not been acquired by larger competitors, suggesting that its product may not have significant competitive advantages.

In conclusion, OneMedNet's financial performance may not justify its 200x sales multiple. The company's operational losses, high G&A expenses, and reliance on equity financing raise concerns about its sustainability and potential for growth. Additionally, the lack of competitive advantages and M&A activity suggests that the company's products may not be as compelling as they appear. Investors should exercise caution when considering OneMedNet as an investment opportunity.