Hinge Health, a digital physical therapy startup, has filed to go public on the New York Stock Exchange.
The IPO will be the testing case for other digital health startups eyeing a public listing. Hinge Health is in a comparatively strong position, despite it running at a small net loss of $11.9 million. It brought in total revenue of $390 million in 2024, up 33% year-over-year, and recorded gross profits of $299.9 million.
VCs have pulled back heavily from investing in consumer-facing digital health companies since 2022, having been burnt by aggressive valuations and as digital ad spending cut into companies’ margins. Tiger Global, one of Hinge Health’s largest shareholders, was a particularly active investor in digital health in 2021, setting the aggressive tone on price.
However, newly buzzy upstarts like Function Health have cut through the skepticism, potentially making room for a revival in the space.
Consumer fitness apps have had a particularly challenging few years, as consumers returned to in-person classes and gym sessions as fears of contracting Covid-19 faded away. Peloton, for one, has laid off over 3,000 employees since 2022, and its stock price has fallen by more than 96% since its peak in December 2020.
Hinge Health’s largest shareholders are Insight Partners, Atomico, 11.2 Capital, Coatue Management and Tiger Global. The latter two firms led its 2021 funding round at a $6.2 billion valuation.
Hinge Health’s TrueMotion product offers personalized guidance on physical therapy. / Featured image from Hinge Health
Learn more about our editorial standards.
