Virtual Physical Therapy Firm Hinge Health Files for IPO, Signaling Potential Revival in Digital Health Market

Hinge Health, a leading provider of virtual physical therapy and musculoskeletal (MSK) care, has filed for an initial public offering (IPO), potentially marking a resurgence in the digital health IPO market. The company, which has raised over $1 billion from investors and was valued at $6.2 billion in a 2021 funding round, plans to list on the New York Stock Exchange under the ticker symbol "HNGE."

Financial Performance and Market Opportunity

Hinge Health reported significant financial improvements in 2024, with revenue reaching $390.4 million, a 33% increase from the previous year. The company also substantially narrowed its losses, reporting a net loss of $11.9 million compared to $108.1 million in 2023.

The virtual MSK care provider sees a substantial market opportunity, citing an estimated $661 billion in annual aggregate direct spend on MSK medical costs in 2023. Of this, more than $70 billion is spent on physical therapy alone. Hinge Health's platform aims to address a range of MSK care needs, from acute injury to chronic pain and post-surgical rehabilitation.

Client Base and Growth Strategy

As of the end of 2024, Hinge Health served over 2,250 enterprise customers, including nearly half of Fortune 100 companies, and reported 532,000 members with 20 million contracted lives. The company primarily works with self-insured employers but is expanding its services to fully-insured health plans and Medicare Advantage populations.

Hinge Health's growth strategy focuses on increasing enrollment, expanding its client list, and developing new products for its existing client base. The company boasts a 12-month client retention rate of 98% and a client net promoter score (NPS) of 87, indicating strong customer satisfaction.

Technology and Clinical Outcomes

Hinge Health's platform combines AI-powered motion tracking technology, wearable sensors, and one-on-one health coaching to deliver in-home musculoskeletal therapy. The company has published 19 peer-reviewed research articles and studies demonstrating the efficacy of its virtual services. In a 10,000-member cohort study, participants reported a 68% average improvement in pain and a 58% reduction in depression and anxiety after 12 weeks.

The company continues to innovate, having launched a movement-based menopause support offering and physical therapy house call services in recent years. Hinge Health's executives emphasize their commitment to automating healthcare delivery, stating, "Whether it takes 10 years or 30, most care will one day be delivered scalably via technology."