IO Health, a startup building workflow tools for home healthcare providers, wrapped up 2025 with impressive growth metrics that position the company for a major expansion in 2026. The company hit $1 million in annual recurring revenue, grew its customer base from 2 to 13 organizations, and secured $2 million in seed funding led by Nina Capital.
Breaking Through the Documentation Bottleneck
Healthcare workers spend enormous amounts of time on paperwork. This is especially true in home health and hospice care, where nurses and therapists visit patients in their homes and must document everything to comply with Medicare rules. IO Health CEO recognized this problem during his decade running home health companies and saw an opportunity to build something better.
The company's approach differs from many AI healthcare startups. Rather than trying to replace human workers with automation, IO Health creates a layer of software that sits on top of existing electronic medical record systems. This software provides real time help to clinicians as they work, suggesting documentation improvements and catching compliance issues before they become problems. The system works without requiring expensive integrations with backend systems, which means healthcare organizations can start using it within days rather than months.
The Numbers Tell the Story
Looking at IO Health's Q4 2025 performance reveals strong momentum across multiple metrics. The company ended the year with 532 active clinician users managing care for 6,902 patients. Revenue hit $216,304 for the quarter, representing 42% growth compared to Q3. While the company posted a net loss of $352,192, this aligns with typical early stage growth investing patterns.
Monthly revenue grew steadily throughout 2025, climbing from around $6,000 in January to $85,000 in December. Patient census expanded from under 2,000 at the start of the year to nearly 7,000 by year end. Revenue per patient stabilized around $11 to $12 monthly, suggesting a consistent pricing model that scales with usage.
The company achieved several notable milestones: 100% conversion rate from pilot programs to paying customers, 100% customer retention, and 181% revenue retention (meaning existing customers expanded their usage significantly). These metrics suggest strong product market fit and customer satisfaction.
Product Evolution and Market Expansion
Throughout Q4, IO Health rolled out several new features based on customer feedback. The End of Visit Compliance Check helps ensure documentation meets regulatory requirements before clinicians finish their visits. An improved electronic documentation solution eliminates paper processes, saving approximately 30 minutes per patient admission and $7 in printing costs.
