Hinge Health, a physical therapy company, made a significant debut in the public market on Thursday, May 25, 2025. The company’s CEO, Daniel Perez, stated that Hinge Health is investing heavily in AI to further automate care delivery. The startup has already automated away about 95% of human clinician hours through AI-powered solutions.
Financial Highlights
Hinge Health recorded an 81% gross margin and $123.8 million in revenue in the first quarter, resulting in a $17.1 million profit. This financial performance has attracted investors looking for high margins and profitability in healthcare IPOs.
AI-Driven Care Automation
Expansion Plans
The company plans to expand beyond physical therapy into new care areas, with announcements expected this summer regarding its efforts to deepen its musculoskeletal care capabilities. Hinge Health also anticipates releases in 2026 that will enable it to deliver care in specialties adjacent to physical therapy, enhanced by AI.
Market Performance
Hinge Health began trading on the New York Stock Exchange with the ticker “HNGE” at $32 per share, valuing the company at $2.6 billion. Its shares surged to $39.25, a 23% increase from the initial price. Despite market volatility triggered by tariff plans and political developments, Hinge Health’s focus on lowering healthcare costs for employers and health plans has positioned it favorably.
Advice for Future Digital Health Companies
Perez emphasized the importance of becoming a sustainable business for digital health companies aiming to go public. He noted that achieving profitability is a challenging task for many in the industry, but leveraging AI can help streamline operations and reduce growth costs.
