Hinge Health, a digital health company focused on musculoskeletal care, has officially filed for an Initial Public Offering (IPO) with the U.S. Securities and Exchange Commission (SEC) under the ticker symbol “HNGE”.
Hinge Health was founded in 2015 and is based in San Francisco. The company specializes in providing musculoskeletal care for people with joint and muscle-related pains. Hinge Health connects its members with health coaches, orthopedic surgeons, and physical therapists. The company uses digital technology to support treatment, including a product called Enso, which is a wearable device that delivers electrical pulses to relieve pain.
Hinge Health also offers a pelvic health program specifically for women, targeting issues like postpartum recovery and pelvic floor disorders.
Strong Financial Performance
According to its IPO filing, Hinge Health’s financial performance has been strong over the past year. The company reported total revenue of $390.4 million for the full year of 2024, which marks a 33% increase from the $292.7 million it made in 2023.
Hinge Health also solidified its profitability. The company’s gross profit increased to $299.9 million in 2024, up from $194.2 million in 2023, achieving a 77% gross margin compared to 66% the previous year.
Importantly, Hinge Health managed to narrow its net loss. The company reported a net loss of $11.9 million in 2024 — a significant improvement from the $108.1 million loss it reported in 2023. The company also generated a free cash flow of $45.2 million in 2024, compared to a cash outflow of $68.5 million the year before.
Membership growth has also been impressive. At the end of 2024, Hinge Health had 532,326 members, a sharp increase from 370,526 members at the end of 2023. The company reported that most of its clients are covered through large national or regional health plans and pharmacy benefit managers (PBMs).
CEO’s Vision for the Future
In the IPO filing, Hinge Health’s co-founder and CEO Daniel A. Perez laid out the company’s long-term vision. Daniel Perez stated that Hinge Health aims to create a new healthcare system by combining technology with human care. He said the future of healthcare will involve more automation, with software handling diagnosis, symptom interpretation, and care plans. Perez also highlighted the growing role of hardware in healthcare, like wearable devices for monitoring health and delivering medication.
Daniel Perez said that the company has focused mainly on physical therapy over the past decade, a sector valued at $70 billion annually in the U.S. Going forward, Hinge Health plans to expand into other areas of healthcare using similar technology-driven models. Several new products are already in development.
Competitive Landscape and Market Position
Hinge Health is considered one of the leading players in the digital musculoskeletal care market. The company has raised more than $800 million in funding. In 2021, it wrapped up a $300 million Series D round, bringing its valuation to $3 billion.
Strategic Partnerships and Expansions
Hinge Health has been expanding its reach through partnerships with major healthcare providers and employers. Just this week, Teladoc, a virtual care company, announced an expanded partnership with Hinge Health.
Last year, Hinge Health partnered with Amazon Health Services to make it easier for individuals to check if they’re covered for musculoskeletal care through their employer or health plan. If covered, they can access care directly through Hinge Health’s platform.
Hinge Health also teamed up with Midi Health, a virtual care provider specializing in women’s health. The strategic partnership with Midi Health allows Hinge Health to offer menopause-related care and expands access to care for women. Additionally, Hinge Health partnered with Sun Life, a major employee benefits provider, to give members access to digital musculoskeletal care.
Challenges and Layoffs
Despite its success, Hinge Health has faced challenges. In April 2024, the company laid off about 10% of its workforce across different departments, including its engineering team. The workforce reduction was reportedly aimed at improving operational efficiency and reducing costs ahead of its planned IPO.
The Bigger Picture
Hinge Health’s decision to go public reflects confidence in its business model and future growth potential. The company has shown impressive financial improvements, membership growth, and strategic expansion. However, the IPO comes at a time of broader economic uncertainty, with market volatility tied to U.S. trade policies and global economic challenges.
If Hinge Health successfully navigates the IPO and continues to grow its member base and revenue, it could establish itself as a dominant force in the digital healthcare market. However, the company’s future will depend heavily on how well it handles market pressures and delivers on its promises of combining technology with personalized care.