Virtual physical therapy company Hinge Health has made headlines by filing to go public, signaling a potential shift in the market for digital health IPOs. The company reported a significant narrowing of losses in the previous year, with a net loss of $11.9 million compared to $108.1 million in 2023. Additionally, Hinge Health saw a revenue increase of over 33% year over year, reaching $390.4 million in 2024.
Hinge Health, founded a decade ago and backed by substantial venture capital investments, specializes in digital musculoskeletal care and physical therapy. The company offers innovative solutions such as an AI-powered movement sensor and a wearable device that delivers electrical nerve stimulation. While primarily serving self-insured employers, Hinge Health is expanding its services to fully-insured health plans and Medicare Advantage plans.
With a client base of 2,250 and over 532,000 members by the end of last year, Hinge Health is tapping into a massive market for musculoskeletal care. Nearly 40% of adults reported experiencing lower back pain in 2019, highlighting the need for accessible and effective solutions in this space. CEO Daniel Perez emphasized the company’s focus on physical therapy, highlighting the $70 billion annual spend in the United States on PT as a significant opportunity for growth.
As Hinge Health prepares for its IPO on the New York Stock Exchange under the ticker symbol HNGE, the digital health sector is showing signs of revival. Following a slowdown in IPO activity in recent years, experts suggest that 2025 could bring renewed interest in public offerings within the digital health space. While only a few companies went public in 2024, including Waystar and Tempus AI, more firms are expected to follow suit this year.
The success of newly public companies in the first half of the year will likely influence the level of activity in the second half of 2025. Neil Patel, head of ventures at Redesign Health, noted the importance of sustained performance in the public market, indicating that a lasting impact is key for attracting investors. With Hinge Health leading the charge in the digital health IPO market, the industry is poised for potential growth and innovation in the coming years.
