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 significant development in the digital health industry and potentially signaling a revival of the dormant IPO market in this sector.

IPO Details and Company Overview

Hinge Health, founded in 2014, plans to list on the New York Stock Exchange under the ticker symbol "HNGE." The company has not yet determined the price range or the number of shares to be offered in the IPO. Hinge Health's platform combines software with artificial intelligence to automate physical therapy services for joint and muscle health, utilizing wearable sensors and one-on-one health coaching to deliver in-home musculoskeletal (MSK) therapy.

The company reported impressive financial results for 2024, with revenue of $390.4 million, representing a 33% increase year-over-year. Notably, Hinge Health significantly narrowed its losses, reporting a net loss of $11.9 million in 2024 compared to $108.1 million in 2023.

Market Opportunity and Growth Strategy

Hinge Health sees a substantial market opportunity in the MSK care sector. 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 alone. The company currently serves more than 2,250 enterprise customers, including nearly half of Fortune 100 companies, and has 532,000 members with 20 million contracted lives.

The company's growth strategy focuses on expanding enrollment, increasing its client list, and developing new products for its existing client base. Hinge Health has also begun to expand its services to fully-insured and Medicare Advantage populations, as well as federal insurance plans.

Competitive Landscape and Industry Outlook

Hinge Health's IPO comes at a time when the digital health IPO market has been relatively quiet. After a surge of 20 digital health companies going public in 2021, there were only two in 2022 and none in 2023. However, experts suggest that the market could be poised for improvement in 2025.

The virtual physical therapy and MSK care market is becoming increasingly competitive, with companies such as DarioHealth, Kaia Health, Omada Health, and Sword Health also operating in this space. Hinge Health's public offering may signal renewed investor interest in the digital health sector and could pave the way for more companies to consider going public in the near future.