Hinge Health Files for IPO: AI-Driven Physical Therapy Startup Breaks Healthcare IPO Drought

Hinge Health Files for IPO, Marking First Healthcare Delivery Startup to Go Public in Nearly Three Years

Hinge Health, a leading physical therapy startup, has filed for an initial public offering (IPO), becoming the first healthcare delivery startup to pursue a public listing in almost three years. The company’s S-1 filing with the Securities and Exchange Commission (SEC) reveals key insights into its financial performance and growth strategy.

According to the filing, Hinge Health plans to list on the New York Stock Exchange under the ticker symbol “HNGE.” The company has enlisted Morgan Stanley, Barclays, and Bank of America as underwriters for the offering. This move comes amid a volatile market environment, with recent economic concerns potentially impacting investor sentiment.

The S-1 filing highlights Hinge Health’s strong financial performance, reporting $390 million in revenue for 2024, a 33% increase from the previous year. The company boasts an impressive gross margin of 77%, indicating robust financial health. Additionally, Hinge Health recorded $45 million in free cash flow and significantly reduced its net loss to $11.9 million in 2024, partly due to strategic cost-cutting measures including layoffs and reduced marketing expenditure.

While the initial filing does not disclose pricing information, Hinge Health’s previous valuation stood at $6.2 billion following its Series E funding round in 2021. The company has raised over $1 billion from prominent investors such as Tiger Global and Coatue. Notably, Coatue plans to sell $50 million in shares back to Hinge Health prior to the IPO.

Hinge Health’s growth strategy focuses on expanding its client base among self-insured employers, health plans, and pharmacy benefit managers. The company leverages AI and virtual care tools to reduce traditional care hours and has been expanding into new care areas. By the end of 2024, Hinge Health reported over 532,000 members and 2,250 clients, with plans to increase contracts with Medicare Advantage and fully insured employers.

The company’s sales and marketing efforts, while reduced in late 2024, remain a significant part of its strategy. Hinge Health plans to increase absolute spending in this area to secure new contracts. Furthermore, the company has begun international expansion, starting with Canada and eyeing potential growth in Europe.

A successful IPO for Hinge Health could potentially reinvigorate the healthcare IPO market, encouraging other startups in the sector to consider going public. Industry observers are closely watching companies like Omada Health and Sword Health as potential candidates for future IPOs.

As Hinge Health prepares to enter the public market, its performance will be closely monitored by investors and industry analysts alike, potentially setting the tone for future healthcare technology offerings.