Hinge Health, a digital physical therapy company specializing in musculoskeletal health, has filed for an initial public offering in the United States, according to regulatory filings and people familiar with the move, one of the most closely watched offerings this year from the digital health sector.
The San Francisco company, which has a $6.2 billion valuation after a private investment round in 2021, is aiming to tap the public markets at a time when health-tech I.P.O.s have faced an extended slowdown since the Covid-19 pandemic began. Investors and analysts are watching the offering closely, as a sign of whether public markets will be ready to welcome back digital health companies.
Hinge Health generated revenue of about $390 million in 2024, the company said in its IPO filing, while posting positive free cash flow of roughly $45 million and gross margins just under 78%. The company has raised north of $1 billion in venture capital from investors like Tiger Global and Coatue Management.
Founded in 2014 by Daniel Perez and Gabriel Mecklenburg, Hinge Health offers virtual physical therapy programs for people with musculoskeletal injuries, including acute sprains up to chronic back and joint pain. Remote coaching, guided exercise therapy and wearable technology are all brought together by the platform to enable patients to be treated from home.
A centerpiece of the company’s young offering is Enso, a wearable electrical nerve stimulation device designed to minimize pain and reduce dependence on prescription drugs (including opioids). Hinge Health has also added in generative AI in recent years to help scale its model of care delivery and uphold clinical teams.
The company is in a market for physical therapy that analysts suggest could reach nearly $70 billion globally by the end of the decade. Hinge Health has claimed that it serves employers and health plans and is far larger than many of its rivals in digital musculoskeletal health aimed at reducing workers’ injuries and chronic pain.
The company’s IPO timing is subject to market conditions, such as broader economic uncertainty, but the offering represents one of a few sizable digital health listings over the past couple of years. A strong debut would help reopen the public markets to other venture-backed healthcare startups looking to go out.
Shares of Hinge Health are expected to begin trading on the New York Stock Exchange under the ticker symbol “HNGE.”
