Hinge Health, a virtual physical therapy provider, has filed for an initial public offering (IPO), potentially indicating a thawing of the digital health IPO market. The company’s filing on Monday revealed significantly reduced losses and robust revenue growth, sparking optimism among industry observers.
According to the securities filing, Hinge Health’s net loss narrowed considerably in 2024, reaching $11.9 million compared to a loss of $108.1 million the previous year. Revenue also saw a substantial increase, climbing over 33% year-over-year to $390.4 million.
The IPO comes at a time when digital health IPO filings have been relatively scarce. However, some experts believe the market may be poised for a recovery in 2025.
Founded a decade ago, Hinge Health has secured hundreds of millions in venture capital investment. The company delivers digital musculoskeletal care and physical therapy, utilizing technology such as an AI-powered movement sensor and a wearable device that provides electrical nerve stimulation. Hinge Health primarily collaborates with self-insured employers but is expanding its services to fully-insured health plans and Medicare Advantage plans, according to the filing.
By the end of the previous year, Hinge Health had 2,250 clients and over 532,000 members, the company stated. The company highlights the significant market for musculoskeletal care, noting that nearly 40% of adults reported lower back pain in 2019, according to the CDC.
“Our first decade in business has been focused on physical therapy (PT)—with $70B in estimated annual spend in the United States, PT provides a long runway ahead for our business,” wrote Hinge co-founder and CEO Daniel Perez in a letter to investors. “Over the coming years we’ll continue applying technology to automate other aspects of care, with several new products already in development.”
Hinge Health has not yet determined the price range or the number of shares to be offered in the IPO, according to a press release. The company plans to list on the New York Stock Exchange under the ticker symbol HNGE.
Digital health filings have been limited recently. A surge in digital health IPOs occurred in 2021, alongside record-breaking venture capital investment in the sector, but the market subsequently cooled. Only one company went public through a special purpose acquisition company merger in 2022, and there were no public exits for digital health firms the following year, according to consultancy and VC firm Rock Health. However, a few companies, like healthcare payments firm Waystar and precision medicine company Tempus AI, went public in 2024.
Experts suggest that more firms are considering going public this year. If newly public firms perform well in the first half of the year, the second half of 2025 could see increased activity, Neil Patel, head of ventures at startup builder Redesign Health, told Healthcare Dive late last year. “It can’t just be like a one-day, 30-day, 60-day spike in price. It has to be like sustained over some period of time,” he said. “And so just the question is, what’s enough?”
