Hinge Health made a strong debut on the New York Stock Exchange, with shares jumping 23% at the opening and closing the day up 17% at $37.56. The digital physical therapy company raised approximately $273 million through its IPO, selling 8.52 million shares at an initial price of $32. The total offering included 13.7 million shares, with existing shareholders contributing the remainder. At the close of trading, the company achieved a market capitalization of over $3 billion, signaling robust investor enthusiasm despite broader market hesitations.
Founded in 2014, Hinge Health provides software-driven solutions for treating musculoskeletal issues, including acute injuries, chronic pain, and post-surgical rehabilitation. Patients can access care remotely, allowing for flexibility and continued support without the need for in-person visits. The San Francisco-based company has been at the forefront of digital therapeutics, blending technology with physical therapy to automate care delivery and enhance patient outcomes.
The IPO comes after a prolonged lull in the tech public markets, especially in digital health, where few companies have gone public since 2021. Rising interest rates and inflation had cooled investor sentiment toward growth-oriented and riskier assets. However, Hinge Health’s successful listing is being seen as a potential turning point for the sector. Other companies, such as Omada Health, are expected to follow, signaling a possible revival of interest in health-tech IPOs.
CEO Daniel Perez highlighted the distinctiveness of Hinge Health’s model, emphasizing the company’s ability to automate elements of care delivery. This innovation has helped it stand apart from other digital health firms that have struggled to gain traction. Perez, who co-founded the company with Executive Chairman Gabriel Mecklenburg, was motivated by personal experiences with physical rehabilitation. After being hit by a car, Perez suffered significant injuries that required lengthy therapy, while Mecklenburg went through a year-long recovery after tearing his ACL in a judo match.
Despite its successful IPO, Hinge Health’s valuation is down from its previous high. In 2021, it was valued at $6.2 billion during its last round of private fundraising. At the IPO price, the company’s valuation is closer to $2.6 billion, though it may be higher on a fully diluted basis. The shift reflects a recalibration in the tech market, where companies are now valued more conservatively based on fundamentals rather than future projections.
The company has raised over $1 billion in funding to date from a roster of prominent investors, including Insight Partners, Tiger Global Management, Coatue Management, and Atomico. Atomico partner Ben Blume praised Hinge Health’s scalability and impact, noting the company’s ability to grow into a clear leader in digital musculoskeletal care. Atomico was an early backer, having led Hinge’s Series A round in 2017.
Trading under the ticker symbol “HNGE,” Hinge Health’s entry into the public market is being seen as a litmus test for the broader digital health industry. Its early success may pave the way for renewed investor interest in mission-driven healthcare innovation that combines technology with proven clinical outcomes.
READ MORE: