Hinge Health’s Truemotion feature.
Courtesy: Hinge Health
Digital physiotherapy startup Hinge Health is preparing to apply for an early public offering that CNBC may have learned soon next week.
Hinge health helps patients with musculoskeletal damage ranging from mild sprain to chronic pain recover from the comfort of their own home. Its IPO is a highly anticipated exit within the abused digital health sector and is upset from the aftermath of the Covid-19 pandemic.
The IPO could occur as early as April, but according to those familiar with the issue, the timeline could change due to uncertainty about tariffs. Hinge Health, which contracts with its employer, said it generated revenue of $390 million in 2024, with $45 million in free cash flow, reaching a total margin of about 78%.
San Francisco startups have raised over $1 billion from investors such as Tiger Global and Court Management. Hinge Health was valued at $6.2 billion as of October 2021. Physiotherapy is estimated to be around $70 billion by the end of the decade.
A spokesman for Hinge Health declined to comment.
Hinge Health CEO Daniel Perez and executive chairman Gabriel Mecklenburg co-founded the company in 2014 after being unhappy with their physical rehabilitation experience, according to the company’s website.
Hinge Health members have access to virtual exercise therapy and an electrical nerve stimulation device called ENSO, designed to serve as an alternative to painkillers such as opiates. The company has been using artificial intelligence generated in recent years to expand its care team.
The company competes directly with other digital health startups like Sword Health, but said hinge’s health is about four times larger than its closet competitors.
Investors will monitor closely to see if Hinge Health’s IPO will serve as a positive pioneer for the sector.
Bloomberg reported Hinge Health’s IPO plan on Friday.
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