Hinge Health, a digital physical therapy startup, has released its first-quarter results, highlighting strong revenue growth. The company, which filed to go public in March, reported a 50% increase in revenue, reaching $123.8 million for the period, compared to $82.7 million in the same quarter last year. This growth surpassed its fourth-quarter performance, which saw a 44% revenue increase to $117.3 million.
The company also posted significant improvements in profitability, reporting net income of $17.1 million after taxes, a stark contrast to the net loss of $26.5 million it posted in the same period last year. Hinge’s financial results reflect a successful period of growth and operational efficiency, as the company managed to reduce its cost of goods sold slightly, allowing it to increase its gross margin to 81% from 70% a year earlier. Hinge also achieved an operating income of $13.1 million, a remarkable turnaround from the $31.4 million operating loss it incurred in the same quarter of the previous year.
Despite the challenging economic climate marked by market volatility and political uncertainty, largely driven by President Donald Trump’s tariff policies, Hinge Health is pressing ahead with its plans to go public. The company’s positive financial performance signals confidence in its business model and future prospects, even as other companies like Klarna and StubHub have postponed their initial public offerings due to market conditions.
Founded in 2014 by Daniel Perez and Gabriel Mecklenburg, Hinge Health leverages technology to offer virtual physical therapy services for musculoskeletal injuries, chronic pain, and post-surgery rehabilitation. The company’s platform enables patients to access treatment remotely, with large employers covering the cost for their employees. In addition to its app-based virtual therapy, Hinge also offers a wearable device called Enso, which provides electrical nerve stimulation for pain relief.
Hinge’s ability to combine software and hardware to address the growing demand for accessible healthcare solutions has been a key factor in its success. With a strong track record of revenue growth and operational efficiency, Hinge Health is poised to continue expanding its services and preparing for its upcoming public debut.
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