Hinge Health reportedly weighing IPO as soon as next week
Illustration: Gabriella Turrisi/Axios
Hinge Health, a virtual physical therapy startup, is reportedly prepping an IPO.
Why it matters: Digital health has seen few successful IPOs in recent years, so this would be a key test.
The latest: San Francisco-based Hinge Health could go public as soon as April, per CNBC and Bloomberg.
Follow the money: Hinge Health has raised over $1 billion from backers like Tiger Global and Coatue Management. It was valued at $6.2 billion in 2021.
- In 2024, it generated $390 million in revenue, with $45 million in free cash flow and 78% gross margins, per CNBC.
Flashback: The company first advertised ambitions to go public in 2022.
How it works: Hinge Health contracts with employers to provide home musculoskeletal (MSK) care through virtual exercise therapy and an electrical nerve stimulation device called Enso aimed at curbing dependence on pain medications.
Between the lines: The company has been leaning on generative AI to expand its care team and improve patient outcomes.
Reality check: Large fundraises and promising research have buoyed the virtual PT sector, but its lack of integration with the health care system stands as a challenge.
Case in point: Digital MSK company DarioHealth hasn't fared so well since its 2017 IPO.
Zoom out: On the heels of recent fundraises, multiple private digital MSK players have hinted at public debuts. A 2024 report from the Peterson Health Technology Institute suggested such approaches might help patients recover faster — and save health systems big bucks.
State of play: Several virtual and hybrid physical therapy providers have raised funds in recent years.
- Livara Health (FKA SpineZone), a specialty provider of value-based in-person and virtual MSK care, collected $15 million in May 2024.
- Hybrid musculoskeletal care provider Commons Clinic in 2023 clinched a $19.5 million Series A.
- Digital MSK startups Kaia Health and RecoveryOne in 2021 scored Series C raises of $75 million and $33 million, respectively.
A spokesperson for Hinge declined to comment.
