Hinge Health’s TrueMotion feature.
Courtesy: Hinge Health
Digital physical therapy startup Hinge Health is gearing as much as file for an initial public offering, potentially as soon as next week, CNBC has learned.
Hinge Health helps patients with musculoskeletal injuries starting from minor sprains to chronic pain get better from the comfort of their very own homes. Its IPO has been a highly-anticipated exit inside the battered digital health sector, which has been reeling from the aftermath of the Covid-19 pandemic.
The IPO could occur as early as April, but timelines might still change as a result of uncertainty around tariffs, in line with an individual acquainted with the matter. Hinge Health, which contracts with employers, generated $390 million in revenue in 2024, had $45 million in free money flow and hit gross margins of about 78%, the person said.
The San Francisco startup has raised greater than $1 billion from investors like Tiger Global and Coatue Management. Hinge Health had a $6.2 billion valuation as of October 2021. Physical therapy is estimated to be a roughly $70 billion market by the top of the last decade.
A spokesperson for Hinge Health declined to comment.
Hinge Health CEO Daniel Perez and Executive Chairman Gabriel Mecklenburg co-founded the corporate in 2014 after they were frustrated by their very own experiences with physical rehabilitation, in line with the corporate’s website.
Members of Hinge Health can access virtual exercise therapy and an electrical nerve stimulation device called Enso that is designed to function a substitute for pain medications like opiates. The corporate has been using generative artificial intelligence to scale its care team in recent times.
The corporate competes directly with other digital health startups like Sword Health, but Hinge Health is about 4 times larger than is closet competitor, the person said.
Investors will likely be watching closely to see whether Hinge Health’s IPO serves as a positive bellwether for the sector.
Bloomberg reported Hinge Health’s IPO plans earlier on Friday.
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