Hinge Health Valuation: Digital Physical Therapy Startup Set to Go Public Soon
Hinge Health, a digital physical therapy startup, is preparing to file for an initial public offering (IPO), with plans that could be realized as early as next week, according to sources at CNBC. This IPO is particularly significant given Hinge Health's impressive valuation, which stood at $6.2 billion as of October 2021.
The company specializes in helping patients with musculoskeletal injuries, offering recovery solutions for issues ranging from minor sprains to chronic pain from the comfort of their homes. As it enters the public market, Hinge Health's valuation presents a highly-anticipated exit within the currently struggling digital health sector, which has faced challenges in the aftermath of the Covid-19 pandemic.
Expected to launch the IPO as soon as April, the timeline may fluctuate due to uncertainties around tariffs. Hinge Health generated $390 million in revenue in 2024, recorded $45 million in free cash flow, and achieved gross margins of about 78%, according to insiders.
Having raised over $1 billion from investors like Tiger Global and Coatue Management, the company has established a strong foothold in a physical therapy market projected to reach approximately $70 billion by the end of the decade. Co-founders Daniel Perez and Gabriel Mecklenburg launched Hinge Health in 2014, driven by their own frustrations with traditional physical rehabilitation methods.
With services including virtual exercise therapy and a unique electrical nerve stimulation device called Enso—an alternative to pain medications like opioids—Hinge Health has utilized generative artificial intelligence to expand its care team in recent years. The company is four times larger than its closest competitor, Sword Health, underscoring its strong position in the market.
Investors are keenly watching Hinge Health's IPO plans, as a successful launch could serve as a positive indicator for the overall digital health sector. Prior reports by Bloomberg have also highlighted Hinge Health's impending IPO.
