Digital physical therapy innovator Hinge Health is preparing to submit its initial public offering (IPO) documentation, with expectations for a filing as soon as next week. This San Francisco-based company specializes in assisting individuals grappling with musculoskeletal injuries, from mild sprains to chronic pain, allowing them to recover from the comfort of their own homes.
IPO Timeline and Financial Performance
The company’s IPO is anticipated to become a significant milestone in a digital health sector that has faced challenges in the wake of the Covid-19 pandemic. While the IPO could happen as early as April, potential shifts in timelines arise from ongoing uncertainties surrounding tariffs. According to sources familiar with the matter, Hinge Health reported an impressive $390 million in revenue for the year 2024, boasting $45 million in free cash flow, along with gross margins approximating 78%.
Investor Backing and Market Position
Hinge Health has successfully garnered over $1 billion in funding from prominent investors, including Tiger Global and Coatue Management. The company was valued at approximately $6.2 billion as of October 2021. The physical therapy market, in which Hinge operates, is projected to expand to around $70 billion by the decade’s conclusion.
While Hinge Health remains tight-lipped about its IPO plans, its co-founders, Daniel Perez and Gabriel Mecklenburg, established the company in 2014 out of a desire to improve the rehabilitation experience based on their own challenges.
Innovative Offerings and Competitive Landscape
Users of Hinge Health can access a healthcare platform that includes virtual exercise therapy and innovative pain management tools such as the Enso device, an electrical nerve stimulation apparatus designed to replace reliance on opioid medications. Additionally, the firm has been integrating generative artificial intelligence to augment its care services in recent years.
Despite facing competition from other digital health startups such as Sword Health, Hinge Health has distinguished itself by achieving a scale approximately four times that of its closest rival.
Looking ahead, market analysts and investors are poised to observe closely how Hinge Health’s IPO could serve as a litmus test for the overall health of the digital health sector. Recent reports from Bloomberg have highlighted this evolving narrative, adding to the anticipation surrounding the IPO’s outcome.
