Wellness SPAC activity has evolved significantly since the 2021 boom, with public market pathways now favoring traditional IPOs and strategic acquisitions over blank check vehicles. Yet several wellness companies that went public via SPAC continue trading, while new opportunities emerge for investors seeking public market exposure to the $6.8 trillion wellness economy. Understanding the current landscape helps investors evaluate public wellness plays.
This analysis examines wellness SPAC performance, alternative public market pathways, and what the shift means for industry participants.
What Is a Wellness SPAC?
A wellness SPAC (Special Purpose Acquisition Company) is a publicly traded shell company formed to merge with a private wellness business, taking that company public without a traditional IPO. SPACs provided an alternative path to public markets during the 2020-2021 boom. Several wellness and fitness companies utilized this route, though performance has been mixed and new formations have declined sharply.
The Rise and Fall of Wellness SPACs
The SPAC market experienced extraordinary growth in 2020-2021, with blank check companies raising over $160 billion. Wellness and fitness companies were among the beneficiaries, seeing SPACs as faster, more certain paths to public markets than traditional IPOs.
Notable Wellness SPAC Transactions
| Company | SPAC Partner | Year | Valuation at Merge |
|---|---|---|---|
| Beachbody | Forest Road Acquisition Corp | 2021 | $2.9B |
| F45 Training | Traditional IPO | 2021 | $1.5B |
| Oatly | Traditional IPO | 2021 | $10B |
| Hims & Hers | Oaktree Acquisition Corp | 2021 | $1.6B |
However, post-merger performance disappointed many investors. Beachbody shares declined significantly from their SPAC merger price. F45 Training filed for bankruptcy in 2023 after aggressive expansion. The cooling of SPAC enthusiasm reflected broader market recognition that many deals were struck at inflated valuations.
Current Wellness SPAC Landscape
New wellness SPAC formations have slowed dramatically. Investors and sponsors now face heightened SEC scrutiny, reduced investor appetite, and more attractive private market alternatives. Companies with strong fundamentals increasingly prefer traditional IPOs or remaining private with growth equity backing.
Why Wellness Companies Are Choosing Private Markets
Oura exemplifies the private market alternative. Despite raising $900 million in October 2025 at an $11 billion valuation, the company has not announced IPO plans. With $1 billion in projected 2025 revenue and path to $2 billion in 2026, Oura could pursue public markets but apparently sees continued private funding as preferable.
Several factors drive this preference among wellness companies:
Valuation Flexibility: Private markets can offer higher valuations than public markets for high-growth companies, particularly in wellness technology.
Reduced Disclosure: Private companies avoid quarterly reporting pressure and public scrutiny that can distract from long-term building.
Strategic Optionality: Remaining private preserves acquisition flexibility and avoids public market constraints on deal structures.
Tracking private market valuations? Our Wellness Brand Valuation Guide breaks down current multiples.
Public Wellness Stocks: Alternative Exposure
Investors seeking public market wellness exposure can access the sector through traditionally-listed companies rather than SPAC mergers.
| Company | Ticker | Focus | Market Cap (Approx) |
|---|---|---|---|
| Hims & Hers Health | HIMS | Telehealth wellness | $6B+ |
| Planet Fitness | PLNT | Gym franchise | $7B+ |
| Peloton | PTON | Connected fitness | $3B+ |
| Xponential Fitness | XPOF | Boutique fitness | $800M+ |
| L’Oréal | OR.PA | Beauty & wellness | $200B+ |
Hims & Hers represents a success story among wellness-adjacent public companies, having recovered from its SPAC merger to achieve significant market capitalization growth. The telehealth platform expanded into weight loss, mental health, and broader wellness categories.
What Wellness SPAC Performance Reveals
The mixed track record of wellness SPACs offers lessons for investors and company operators.
Valuation Discipline Matters
Companies that merged at peak 2021 valuations faced significant stock price pressure when growth assumptions proved optimistic. Beauty M&A multiples now average 14.9x EV/EBITDA in private markets, but public markets demand profitability evidence that many growth-stage wellness companies cannot yet demonstrate.
Business Model Durability
Connected fitness companies that thrived during pandemic lockdowns faced normalization headwinds. Investors now scrutinize unit economics, customer retention, and competitive moats more carefully before providing public market valuations.
Execution Risk Amplification
Public company reporting requirements amplify the impact of execution missteps. F45’s aggressive franchise expansion strategy worked in private markets but created obligations that became unsustainable under public market pressure.
Future of Wellness Public Markets
Several trends will shape wellness company public market access in 2026 and beyond.
Traditional IPO Revival: Strong companies with proven profitability will pursue conventional IPOs rather than SPAC mergers. The IPO window for quality companies appears to be reopening.
Strategic Acquisitions: Large consumer, beauty, and healthcare companies are actively acquiring wellness assets. L’Oréal’s six 2025 transactions demonstrate appetite for private wellness brands at premium valuations.
Selective SPAC Activity: While overall SPAC formation has declined, occasional wellness-focused vehicles may emerge for specific opportunities with strong sponsor-company alignment.
How to Evaluate Wellness Public Stocks
Investors considering public wellness exposure should focus on fundamental metrics rather than SPAC origin.
Revenue Growth Sustainability: Distinguish pandemic-driven growth from durable demand expansion.
Unit Economics: Examine customer acquisition costs, lifetime value, and retention rates.
Path to Profitability: Assess realistic timelines for EBITDA positive performance.
Competitive Position: Evaluate moats against both startup disruptors and incumbent expansion.
Explore the Complete Investment Series
This analysis is part of our comprehensive Wellness Industry Investment Guide. Continue your research:
- Wellness Startup Funding Tracker — Private market activity
- Wellness Brand Valuation Guide — Multiples and comparables
- Celebrity Wellness Investment Portfolios — Star capital deployment
- The Longevity VC Landscape — Specialized funds
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