Digital physical therapy startup Hinge Health is preparing to file for its initial public offering (IPO), potentially as soon as next week. The company, which provides remote care for patients recovering from musculoskeletal injuries, such as sprains and chronic pain, is positioned as a leader in the digital health sector, which has faced challenges following the Covid-19 pandemic.
Hinge Health’s IPO is highly anticipated, especially as the digital health sector looks for recovery and growth opportunities. Although the IPO could take place as early as April, sources indicate that the timeline remains fluid due to uncertainties around tariffs and other economic factors. In 2024, Hinge Health generated $390 million in revenue, with a free cash flow of $45 million and a gross margin of approximately 78%, highlighting its strong financial performance.
Founded in 2014 by CEO Daniel Perez and Executive Chairman Gabriel Mecklenburg, Hinge Health was born out of their frustrations with traditional physical rehabilitation. The San Francisco-based company has raised over $1 billion in funding from major investors, including Tiger Global and Coatue Management. Its valuation was $6.2 billion in October 2021. The physical therapy market is expected to reach approximately $70 billion by the end of the decade, making it a key growth area for the company.
Hinge Health offers a range of services, including virtual exercise therapy and the Enso device, which provides electrical nerve stimulation as an alternative to opioid pain medications. The company has also embraced artificial intelligence to scale its care team, allowing it to offer more personalized and efficient treatment. Hinge Health’s main competitors in the space include startups like Sword Health, although Hinge Health is significantly larger, with estimates suggesting it is about four times the size of its closest rival.
Investors are closely watching Hinge Health’s IPO, as it could serve as an indicator of the future health of the digital health market. If the IPO is successful, it could set a positive precedent for other companies in the sector, signaling that there is still strong investor confidence in digital health solutions despite recent market challenges.
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