Hinge Health Files for IPO, Signaling Potential Revival in Digital Health Market

Digital physical therapy company Hinge Health has filed to go public, marking a potential resurgence in the digital health IPO market. The company, valued at $6.2 billion in a 2021 funding round, aims to list on the New York Stock Exchange under the ticker symbol "HNGE."

Company Overview and Financial Performance

Hinge Health, founded in 2014, has developed a virtual care platform that combines software, artificial intelligence, and wearable sensors to deliver in-home musculoskeletal (MSK) therapy. The company's technology includes AI-powered motion tracking and a proprietary electrical nerve stimulation wearable device.

In 2024, Hinge Health reported revenue of $390 million, a 33% increase from $293 million in 2023. The company significantly reduced its losses, from $108 million in 2023 to $12 million in 2024. With over 2,250 enterprise customers, including nearly half of Fortune 100 companies, Hinge Health serves 532,000 members and has 20 million contracted lives.

Market Opportunity and Growth Strategy

Hinge Health sees substantial potential in the MSK care market. According to the company's S-1 filing, MSK medical costs rose to an estimated $661 billion in annual aggregate total direct spend in 2023, with over $70 billion spent on physical therapy. The demand for physical therapy is expected to increase due to an aging population and increasingly sedentary lifestyles.

The company's growth strategy focuses on expanding enrollment, increasing its client base, and developing new products. Hinge Health has also built what it calls a "double-walled moat" to protect its market position, combining innovative technology with a large base of contracted lives and health plan partnerships.

Competitive Landscape and Industry Impact

Hinge Health's IPO filing comes amid growing competition in the virtual physical therapy and MSK care market. Other players in the space include DarioHealth, Kaia Health, Limber Health, Omada Health, RecoveryOne, Sword Health, and Vori Health.

The company's public offering could signal a revival in the digital health IPO market, which has been relatively quiet since 2021. If successful, Hinge Health's IPO may pave the way for other digital health companies to go public, potentially reinvigorating investor interest in the sector.