Prime Highlights:
Hinge Health is preparing to file for an initial public offering (IPO), potentially as soon as next week.
The company provides digital physical therapy services, helping patients recover from musculoskeletal injuries at home.
Key Background:
Hinge Health, a digital physical therapy startup, is preparing to file for an initial public offering (IPO), with potential filing as early as next week, CNBC has learned. The company, which helps patients recover from musculoskeletal injuries in the comfort of their homes, has become a key player in the digital health space.
The IPO has garnered significant attention within the health tech sector, which has faced challenges in the aftermath of the COVID-19 pandemic. Despite this, Hinge Health has managed to demonstrate strong financial performance. In 2024, the company generated $390 million in revenue, posted $45 million in free cash flow, and achieved gross margins of approximately 78%. These metrics highlight the company’s robust business model and growth potential.
Founded in 2014 by Daniel Perez and Gabriel Mecklenburg, Hinge Health provides virtual exercise therapy and offers an electrical nerve stimulation device called Enso, which is designed to serve as an alternative to pain medications, such as opioids. The company has raised over $1 billion in funding from investors, including Tiger Global and Coatue Management, and was valued at $6.2 billion as of October 2021.
The company’s digital health offering positions it to capitalize on the $70 billion physical therapy market, projected to reach the end of the decade. Hinge Health competes with other startups in the digital health space, such as Sword Health, but is reported to be about four times larger than its closest rival.
Despite uncertainty over tariffs potentially affecting the timeline, sources have indicated that Hinge Health’s IPO could take place as soon as April. Investors are keenly watching whether the IPO will serve as a positive indicator for the sector’s recovery. The company declined to comment on the matter.
