Hinge health to become public in April so quickly, says Source, says Source

Digital physiotherapy Startup Hinge Health is preparing to submit a first public offer, possible as soon as next week, CNBC has learned.

Hinge health helps patients with musculoskeletal injuries ranging from small sprains to chronic pain from the comfort of their own houses. The IPO has been a long-awaited exit within the battered digital health sector, which is staggering from the aftermath of the COVID-19 Pandemie.

The IPO could already happen in April, but the timelines can still change due to uncertainty about rates, according to a person who is familiar with the issue. Hinge Health, who contracts with employers, generated $ 390 million in income in 2024, had $ 45 million in free cash flow and hit gross margins of around 78%, the person said.

San Francisco’s startup has collected more than $ 1 billion from investors such as Tiger Global and Coatue Management. Hinge Health had a rating of $ 6.2 billion from October 2021. Physiotherapy is estimated at a market of around $ 70 billion towards the end of the decade.

A spokesperson for Hinge Health refused to comment.

Hinge Health CEO Daniel Perez and executive chairman Gabriel Mecklenburg also founded the company in 2014 after they were frustrated by their own experiences with physical rehabilitation, according to the website of the company.

Members of Hinge Health have access to virtual exercise therapy and an electric nerve stimulation device called Enso that is designed to serve as an alternative to painkillers such as opiates. In recent years, the company has used generative artificial intelligence to scale its care team.

The company competes directly with other digital health startups such as Sword Health, but hinge health is about four times larger than the cabinet competitor, the person said.

Investors will keep a close eye on to see if the IPO of Hinge Health serves as a positive Bellwether for the sector.

Bloomberg previously reported the IPO plans of Hinge Health on Friday.

WATCH: The market is in a good environment for hedge funds, says Citi’s Mithra Warrier