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Hinge Health Launches IPO at Top of Range, Signaling Investor Optimism in Digital Health

Digital physical therapy innovator Hinge Health made its public market debut Thursday, pricing its initial public offering (IPO) at $32 per share, the top of its expected range. The move raised approximately $437 million, positioning the company with a valuation around $2.6 billion—a notable figure despite being less than half of its peak $6.2 billion private market valuation from 2021.

The IPO, which includes 13.7 million shares, saw Hinge Health directly offering 8.52 million shares, bringing in around $273 million for the company. The remaining 5.18 million shares were sold by existing shareholders. Trading commenced on the New York Stock Exchange under the ticker “HNGE.”

This public debut marks a significant moment for the digital health industry, which has experienced a downturn in IPO activity since the COVID-era tech boom subsided. The last few years have been challenging, with investor appetite for digital health companies shrinking due to concerns over profitability, high burn rates, and post-pandemic user retention. Hinge Health, however, is bucking the trend.

Company Background: A Digital Rehab Trailblazer

Founded in 2014 by CEO Daniel Perez and Executive Chairman Gabriel Mecklenburg, both of whom dealt with personal struggles related to physical therapy, Hinge Health aims to transform how patients recover from musculoskeletal issues. The company’s app-based platform offers tailored programs for treating acute injuries, chronic pain, and post-surgical rehabilitation, eliminating the need for frequent clinic visits.

Its offerings combine wearable sensors, mobile-guided exercises, one-on-one coaching, and access to licensed clinicians—all available remotely. The platform is currently used by employers and health plans to serve millions of Americans, making it one of the largest digital health players in the musculoskeletal space.

Strong Growth Numbers Ahead of IPO

Hinge Health has demonstrated robust growth ahead of going public. In Q1 2025, the company reported $123.8 million in revenue, a 50% increase from $82.7 million during the same quarter the previous year. It also flipped its bottom line from a $26.5 million loss in Q1 2024 to a $17.1 million profit, highlighting a rare show of profitability in the digital health IPO class.

This financial turnaround helped generate optimism around the offering and set the stage for stronger-than-expected pricing.

Why This IPO Matters: Tech and Health Rebound Indicators

The broader IPO market, particularly for tech and health-related startups, has been sluggish over the past two years. However, recent activity is hinting at a possible revival. Last week, eToro, the Israeli social investing platform, enjoyed a strong public debut, and CoreWeave, an AI infrastructure firm, reported 420% revenue growth, sending its stock up 56% post-earnings.

Hinge Health’s IPO comes as a key test for investor sentiment in the digital health space, which has seen minimal IPO activity since 2021. Analysts and investors alike are watching closely to gauge whether this marks the beginning of a new window for similar tech-health hybrids.

Funding History and Backers

Before going public, Hinge Health raised over $1 billion from major investment firms, including Tiger Global Management, Coatue Management, and Insight Partners. Its aggressive growth strategy and tech-forward approach helped it build a customer base that includes over 1,000 employers and health plans, serving millions of users nationwide.

Despite the drop from its $6.2 billion private valuation, the company’s healthy balance sheet and demonstrated revenue momentum may offer a more grounded and sustainable growth path moving forward.

Leadership Outlook: A Long-Term Vision

In a letter to investors, CEO Daniel Perez emphasized that Hinge Health is just getting started: “We have many decades of work ahead of us. Musculoskeletal care is broken, and we’re committed to fixing it. We hope you join us on this journey.”

With a unique blend of healthcare innovation and scalable technology, Hinge Health is not only making a splash on Wall Street—it may be setting the tone for a new era in digital therapeutics.