Hinge Health signage outside the Recent York Stock Exchange (NYSE) through the company’s initial public offering (IPO) in Recent York, US, on Thursday, May 21, 2025.
Michael Nagle | Bloomberg | Getty Images
Shares of Hinge Health popped of their debut on the Recent York Stock Exchange on Thursday after the digital physical therapy company raised about $273 million in its IPO.
The stock opened at $39.25, rising 23% from its $32Â IPO price. It closed up 17% at $37.56 a share, bringing its market capitalization to greater than $3 billion. Hinge sold 8.52 million shares within the offering, while the entire offering was for 13.7 million shares, with the balance being sold by existing shareholders.
Hinge, founded in 2014, uses software to assist patients treat acute musculoskeletal injuries, chronic pain and perform post-surgery rehabilitation from anywhere.
The San Francisco-based company filed its initial prospectus in March and updated the document earlier this month with an expected pricing range of $28 to $32.
Wall Street and the digital health sector have been watching Hinge’s debut closely, as it should shine some light on investors’ appetite for brand new health-tech solutions.
The broader tech IPO market has been in an prolonged drought since late 2021, when soaring inflation and rising rates of interest pushed investors out of dangerous assets. Inside digital health, it has been almost completely dormant. Hinge is leading the charge, with virtual chronic care company Omada Health filing to go public earlier this month.
“Health care is hard, absolutely, but we’re very different from any of the digital health corporations which have come before,” Hinge CEO Daniel Perez told CNBC’s “Money Movers” on Thursday. “Our technology is definitely automating the delivery of care itself, and that is why lots of investors have been so involved in Hinge Health.”
Perez and Hinge’s Executive Chairman Gabriel Mecklenburg co-founded the corporate after experiencing personal struggles with physical rehabilitation. Perez broke an arm and a leg after he was hit by a automobile, and Mecklenburg tore his anterior cruciate ligament during a judo match. Each men went through about 12 months of physical therapy.
On the IPO price, Hinge was value about $2.6 billion, though that number might be higher on a completely diluted basis. That is down significantly from a non-public market valuation of $6.2 billion in October 2021, the last time the corporate raised outside funding.
Hinge has raised greater than $1 billion from investors including Insight Partners, Tiger Global Management, Coatue Management and Atomico.
Ben Blume, a partner at Atomico, said Hinge’s ability to scale has “truly set them apart.” The firm led Hinge’s Series A funding round in 2017.
“Hinge Health has grown into a transparent category leader, improving the lives of people who find themselves living with chronic pain,” Blume said in an announcement to CNBC. “Their success is a testament to the ability of mission-driven innovation.”
Hinge is trading on the NYSE under the ticker symbol “HNGE.”
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