In a world where physical therapy often conjures images of sterile clinics and repetitive exercises, Hinge Health is rewriting the narrative. On May 13, 2025, this San Francisco-based digital health pioneer announced its plan to raise up to $437 million through an initial public offering (IPO) on the New York Stock Exchange (NYSE) under the ticker “HNGE.” With shares priced between $28 and $32, Hinge Health is not just stepping into the public market—it’s making a statement about the future of musculoskeletal (MSK) care. Let’s dive into what this IPO means, why it’s a big deal, and how Hinge Health is poised to shake up the digital health landscape.
A Personal Mission Turned Public Vision
Hinge Health’s story starts with pain—literally. Co-founders Daniel Perez and Gabriel Mecklenburg didn’t just stumble into the world of digital physical therapy; they lived it. Perez, hit by a car at 13, endured a grueling recovery with multiple surgeries. Mecklenburg faced his own battle after tearing his ACL in a judo match. Their shared frustration with traditional physical therapy—its inaccessibility, cost, and one-size-fits-all approach—sparked a vision in 2014. By December of that year, they had a prototype, and Hinge Health was born.
Fast forward to 2025, and Hinge Health is a leader in digital MSK care, offering virtual physical therapy through AI-powered motion tracking, wearable sensors, and personalized coaching. Its platform tackles everything from chronic back pain to post-surgical rehab, serving over 2,250 clients, including giants like Target and Morgan Stanley. With 20 million people eligible to access its services, Hinge Health is proving that virtual care can be as effective as in-person visits—without the hassle.
The IPO Details: Numbers That Tell a Story
Hinge Health’s IPO is a bold move in a volatile market. The company plans to offer 13.7 million shares, with 8.52 million coming from Hinge itself and 5.14 million from existing shareholders, including heavyweights like Tiger Global Management and Insight Partners. At the midpoint price of $30 per share, Hinge Health would be valued at $2.42 billion, with a fully diluted valuation potentially hitting $2.98 billion. This is a far cry from its $6.2 billion valuation in 2021, when a Series E round led by Tiger Global and Coatue Management fueled its meteoric rise. But in today’s market, a $2.6 billion target is nothing to sneeze at.
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The financials back up Hinge’s confidence. In Q1 2025, revenue soared 50% to $123.8 million, up from $82.7 million the previous year. For the full year of 2024, Hinge reported $390.4 million in revenue, a 33% jump from $292.7 million in 2023. Even more impressive? The company swung to a $17 million profit in Q1 2025, compared to a $26 million loss a year earlier. With a gross margin of 81% and $45.2 million in free cash flow for 2024, Hinge Health is showing it’s not just growing—it’s growing smart.
Why This IPO Matters
Hinge Health’s IPO isn’t just about raising cash; it’s a litmus test for the digital health sector. Since 2021, public offerings in this space have been scarce, with many startups struggling to adapt to a post-COVID market. Hinge’s decision to forge ahead—despite market jitters caused by U.S. tariff policies under President Donald Trump—signals confidence. While companies like Klarna and StubHub delayed their IPOs, Hinge Health is betting on its “recession-proof” model. After all, MSK conditions don’t take a break during economic downturns, and employers are keen on solutions that cut healthcare costs without sacrificing quality.
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The MSK market is massive, with direct medical costs estimated at $661 billion in 2023, including $70 billion for physical therapy alone. Add in indirect costs like lost productivity, and the total burden nears $1.3 trillion. Hinge Health’s platform, which reduces the need for in-person visits by 95%, is a game-changer. Its FDA-cleared Enso wearable, which delivers electrical nerve stimulation for pain relief, and AI-driven coaching make it a standout in a crowded field. Competitors like Sword Health, valued at $3 billion, are watching closely, but Hinge’s first-mover advantage and robust client base give it an edge.
Challenges on the Horizon
Going public isn’t all smooth sailing. Hinge Health’s valuation has taken a hit since its 2021 peak, reflecting a broader tech correction. Investors may question whether digital MSK solutions can fully replace traditional therapy, especially for complex cases. Integration with healthcare providers and plans remains a hurdle, as patients need seamless access to see value. Plus, Hinge’s heavy spending on sales and marketing—50% or more of revenue in five of eight quarters from 2023 to 2024—raises questions about customer acquisition costs.
Market volatility is another wild card. Trump’s tariff plans, ranging from 10% to 50% on imports, sent stocks tumbling in April 2025, prompting Hinge to briefly consider delaying its IPO. But with Morgan Stanley, Barclays, and BofA Securities leading the charge, Hinge Health is pushing forward, with pricing expected the week of May 19 and trading potentially starting May 21 or 22.
A Broader Impact on Digital Health
Hinge Health’s IPO could be a bellwether for the industry. If it performs well, it might pave the way for others, like Omada Health, which filed to go public days before Hinge set its terms. The digital health sector raised $7.1 billion through IPOs in 2024, up from $2.8 billion in 2023, and experts predict 2025 could see even more activity. A strong debut for Hinge could signal that the market is ready to embrace healthcare startups again, especially those with solid financials and a clear path to profitability.
Beyond the numbers, Hinge Health’s story resonates on a human level. Perez and Mecklenburg’s “Cockroach Award”—a quirky nod to resilience—captures the company’s grit. From a prototype sketched out over coffee to a public company serving millions, Hinge Health embodies the kind of tenacity that investors and patients alike can rally behind. Its focus on underserved areas like women’s pelvic health and fall prevention shows a commitment to inclusivity, while partnerships with Amazon Health and Teladoc expand its reach.
What’s Next for Hinge Health?
As Hinge Health prepares to ring the NYSE bell, all eyes are on its ability to deliver. The company plans to expand internationally, targeting Canada and Europe in 2025. It’s also doubling down on innovation, with AI enhancements and new care areas on the horizon. For employers, Hinge’s no-copay model and cost-saving potential are hard to ignore. For patients, the promise of accessible, effective care from the comfort of home is a lifeline.
This IPO isn’t just about Hinge Health’s future—it’s about proving that digital health can thrive in a skeptical market. If Hinge can navigate the challenges and sustain its growth, it could redefine how we think about physical therapy. For now, the stage is set, the prospectus is filed, and Hinge Health is ready to take its shot. Whether it’s a home run or a cautious base hit, one thing’s clear: this is a company worth watching.
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