Digital physical therapy Startup Hinge Health eyes IPO as early as April 2024 amid sector rebound

Signaling a potential rebound in the sector, digital physical therapy startup Hinge Health is preparing for an initial public offering that could take place as early as April—or possibly as soon as next week, according to a report from CNBC.

The timeline for the IPO isn’t set in stone, with factors like tariffs possibly affecting the schedule. But if all goes as planned, Hinge Health could be public soon. Last year, the company generated $390 million in revenue, posted $45 million in free cash flow, and reached gross margins of about 78%, CNBC reported, citing a person familiar with the matter.

“Digital physical therapy startup Hinge Health is gearing up to file for an initial public offering, potentially as soon as next week, CNBC has learned.”

Founded in 2014 by Daniel Perez and Gabriel Mecklenburg, Hinge Health helps patients recover from musculoskeletal injuries, offering therapy from the comfort of their homes. The potential IPO has drawn attention in the digital health sector, which has struggled since the COVID-19 pandemic.

Since its inception ten years ago, the San Francisco-based Hinge Health has raised over $1 billion from investors, including Tiger Global and Coatue Management. It was last valued at $6.2 billion in October 2021. The physical therapy market is projected to reach $70 billion by the end of the decade.

Hinge Health declined to comment on its IPO plans.

CEO Daniel Perez and Executive Chairman Gabriel Mecklenburg co-founded the company in 2014 after facing frustrations with their own physical rehabilitation experiences.

The startup offers virtual exercise therapy and an electrical nerve stimulation device called Enso, which is intended as an alternative to pain medications like opioids. In recent years, the company has been using AI to expand its care team.

Hinge Health competes with other digital health startups like Sword Health but is reportedly about four times larger than its nearest competitor.

Investors are closely watching Hinge Health’s next move, as its IPO could signal a shift in momentum for the broader digital health sector.

Hinge Health Founders (Credit: Hinge Health)