Updated May 21 at 7 p.m. ET
Digital physical therapy company Hinge Health priced its IPO at $32 per share on Wednesday, at the top of the company’s expected price range.
The company said it raised $437 million by selling 13,666,000 million shares of its Class A common stock, according to a press release issued Wednesday. Hinge Health said it sold 8.5 million shares and 5.1 million shares are being sold by existing shareholders.
Hinge Health will begin trading tomorrow morning on the New York Stock Exchange under the ticker symbol “HNGE.” The offering is expected to close May 23.
The company filed its initial prospectus in March and announced its terms May 13 with an expected price range between $28 and $32 per share.
At the midpoint of the proposed range, Hinge Health would command a fully diluted market value of $2.9 billion, it said in an earlier press release. Reuters reported that the company is targeting a valuation of $2.6 billion.
Hinge Health has raised more than $1 billion from investors. Its valuation soared to $6.2 billion in 2021 when it raised $400 million in a series E round led by Tiger Global and Coatue Management. Insight Partners, a venture capital and private equity firm, also was an early investor, leading the company's series B round in 2018 and participated in its series C and series D rounds.
The company, founded in 2014, booked $432 million in revenue for the 12 months ended March 31, 2025.
The company's revenue grew 50% in the first quarter of 2025, jumping from $82.7 million in Q1 2024 to $123.8 million, according to its S-1 filing. The company boasted net income of $17.1 million in Q1, a significant improvement from a net loss of $26.5 million during the same quarter a year ago.
Hinge Health leverages software to largely automate care for joint and muscle health. The company has designed its platform to address a broad spectrum of musculoskeletal (MSK) care, including acute injury, chronic pain, and post-surgical rehabilitation. To address the automation of care, Hinge has developed AI-powered motion tracking technology, a proprietary FDA-cleared wearable device called Enso and an AI-supported care team to deliver scalable and personalized MSK care.
Morgan Stanley, Barclays, BofA Securities, Evercore ISI, RBC Capital Markets, Truist Securities, Stifel, William Blair, and Piper Sandler are the joint bookrunners on the deal.
Originally published March 11 at 4 p.m. ET
Digital physical therapy company Hinge Health filed to go public Monday, signaling a potential revival of the dormant digital health IPO market.
The company has not specified the number of shares to be offered or the price range for the proposed offering. The IPO specialists at Renaissance Capital estimate Hinge Health could raise $500 million in its IPO.
Hinge intends to list on the New York Stock Exchange under the ticker symbol “HNGE.”
Hinge, which launched in late 2014, developed software combined with artificial intelligence to automate physical therapy services for joint and muscle health. The platform uses wearable sensors and one-on-one health coaching to deliver in-home musculoskeletal therapy. The technology includes AI-powered motion tracking technology and a proprietary electrical nerve stimulation wearable device.
There's growing competition in the virtual physical therapy and MSK care market. Other companies in the space include DarioHealth, Kaia Health, Limber Health, Omada Health, RecoveryOne, Sword Health and Vori Health.
Hinge's IPO marks a potential upswing in the public investor market, and the digital health industry will be closely watching given the recent stagnation in the exit markets. There were 20 digital health companies that went public in 2021 and only two, including prescription digital medicine company Akili Interactive, in 2022. There were no digital health IPOs in 2023, according to Rock Health.
Hinge Health’s potential IPO marks a pivotal moment for the next wave of health tech exits, according to Lynne Chou O'Keefe, founder and managing partner at Define Ventures.
"Their hybrid approach—selling to employers on a PMPM basis, providing digital PT with known protocols, and delivering measurable cost savings—has positioned them as a standout leader in musculoskeletal care. They’ve demonstrated that condition-specific, tech-enabled care can scale efficiently with strong unit economics," O'Keefe said.
In a recent report, Define Ventures forecasted that the next wave of health tech companies pursuing liquidity events in the coming years will achieve 2-3 times the revenue scale as the first wave did when they exited. And, these companies are likely to reach this scale more quickly, demonstrating faster commercialization and improved operational and internal efficiency compared to their predecessors, the VC firm said.
Hinge Health's upcoming IPO provides an important inflection point for companies that will exit several years from now, she noted, including the next wave of experienced health tech leaders ready to build and invest in the next generation of companies. "For early-stage founders, it’s an encouraging validation: the bar for strong economics is higher, but the market remains receptive to businesses that can scale effectively and deliver real impact. The next 12 months — including the companies likely to follow Hinge in filing S-1s — will be critical in shaping what’s next for the sector," she said.
"For all the noise and rhetoric in the employer market, Hinge has built a category-leading business with reported 80% gross margins, $390 million in revenue this year, and $45 million in free cash flow—combining tech-enabled care delivery with impressive economics," O'Keefe said. "
Digging into Hinge Health's S-1 filing
Hinge Health's virtual care platform can address a range of MSK care—from acute injury to chronic pain to post-surgical rehabilitation.
According to the company's S-1 filing with the U.S. Securities and Exchange Commission, its clients are primarily self-insured employers, including public sector employers such as state and local city governments and labor unions. Hinge currently works with more than 2,250 enterprise customers and has client agreements with nearly half of Fortune 100 companies. The company reported 532,000 members at the end of 2024 with 20 million contracted lives.
"Despite this progress, our current contracted lives only represent 5% of our total addressable market," the company said in its S-1 filing.
The company counts 50 health plans as partners, including five of the largest national health plans by self-insured lives, along with the top three pharmacy benefit managers by market share.
Hinge says it's in the early stages of expanding to serve health plans’ fully insured and Medicare Advantage populations and federal insurance plans.
The company, valued at $6.2 billion in a 2021 funding round, brought in $390 million in revenue in 2024, up 33% from $293 million in 2023. Hinge shrank its losses considerably, from a loss of $108 million in 2023 to a net loss of $12 million last year.
Hinge banked a $400 million series E round in October 2021, led by Tiger Global and Coatue Management, while Alkeon and Whale Rock acquired ownership as part of a $200 million secondary investment. The company says it has raised more than $1 billion from investors.
Hinge sees a substantial market opportunity to offer virtual MSK services with growing demand for physical therapy.
Within the U.S. alone, the company's current core market, approximately 40% of adults suffered from an MSK disorder in 2021, according to a World Health Organization estimator. According to the MSK TAM Report, MSK medical costs rose to an estimated $661 billion in annual aggregate total direct spend in 2023. Hinge contends, based on an analysis of health claims data, that more than $70 billion of that spend is on physical therapy.
MSK conditions incurred an additional $624 billion in indirect costs, such as worker productivity loss, resulting in an estimated total MSK burden of nearly $1.3 trillion, Hinge said in its S-1 filing.
Further, the demand for physical therapy is expected to increase due to an aging population and an increasingly sedentary lifestyle.
"We aim to not just approximate physical therapy enrollment but expand the market through better outcomes, more convenient access and a highly personalized member experience," Hinge executives said in the S-1 filing.
The digital health company also touts its outcomes as data show its virtual services can improve health and lower costs, based on 19 peer-reviewed research articles, studies and outcomes analyses. In a 10,000-member cohort study, Hinge participants with chronic knee and back pain reported a 68% average improvement in pain and a 58% reduction in depression and anxiety after 12 weeks.
Hinge's 2023 Employer Claims Study estimated a return on investment of 2.4x for clients, based on the estimated $2,387 average cost savings per member over a 12-month period divided by the cost of the chronic program.
The company says its major growth levers are growing enrollment, an expanding client list and developing new products for its existing client base.
Hinge executives also say the company has built a "double-walled moat" to protect its flanks. "We believe our platform is beyond what healthcare incumbents are able to develop in-house. But simply innovating in healthcare is not enough—you have to get paid for your product in order to survive. Our second wall is a base of ~20 million contracted lives across 2,250+ clients and 50+ health plan partners—which allows us to ship innovation to market and add new clients," executives said.
"We didn’t come this far with digital physical therapy to stop at digital physical therapy. Whether it takes 10 years or 30, most care will one day be delivered scalably via technology. We’re moving with urgency to further solidify and extend our current position while also developing several new products to scale and automate other aspects of care. Automating the delivery of healthcare is a special megatrend we’ll be chewing on for decades," executives said.
Hinge contends that it has a "scalable, repeatable go-to-market model."
It is often a client's sole digital MSK care provider to their contracted lives, with an average contract term of three years, executives said. "For the term of each contract, we are able to enroll, engage, and re-engage the client’s eligible lives, driving a recurring, repeatable revenue model, which is demonstrated in our net dollar retention of 117% as of December 31, 2024," Hinge executives said.
The company boasts a 12-month client retention rate of 98% and a client net promoter score of 87.
Last year, the company launched a new movement-based menopause support offering to help women alleviate common menopause symptoms such as hot flashes, joint and muscle pain and pelvic floor disorders. In January 2023, it rolled out physical therapy house call services to offer in-person physical therapy visits at home or the workplace combined with digital services.
In December, Amazon added the company to its health conditions program, a service to help connect customers with virtual care benefits.
Last year, there were several healthcare and health tech IPOs. Healthcare payment software maker Waystar debuted on the public market in June, raising $967.5 million and marking the biggest health tech IPO since 2022. Tempus AI, a precision medicine company, also went public in June and raised $410.7 million.
BrightSpring Health, a home- and community-based healthcare services provider, went public in January.
Hospital operator Ardent Health raised $192 million in an IPO in July. And KindlyMD, which provides telemedicine services and digital health solutions, completed its IPO in May raising $6.8 million.
Morgan Stanley, Barclays and BofA Securities are acting as lead book-running managers for the proposed offering. Evercore ISI, RBC Capital Markets, Truist Securities, Stifel, William Blair, Piper Sandler, Canaccord Genuity, KeyBanc Capital Markets, Needham & Company, Raymond James and KKR Capital Markets LLC are also acting as book-running managers.