Hinge Health Nears IPO, Reports Q1 Profit

May 15, 2025

The developer of an app to manage musculoskeletal conditions is looking to raise more than $400 million

A digital healthcare company focused on the musculoskeletal market is close to listing its shares on the New York Stock Exchange with a valuation of more than $2 billion if enough investors bite at the expected price.

San Francisco-based Hinge Health Inc. earlier this year filed papers for an initial public offering whose proceeds will primarily go to settling tax obligations, with additional money earmarked for growth initiatives. Hinge has developed a mobile application that helps people recover at home from injuries as well as manage chronic pain and rehabilitation from surgery. Executives say their 2024 data show that using their platform cut the number of human care team hours associated with traditional physical therapy by a whopping 95%.

Hinge leaders and their investment bankers are looking to sell nearly 13.7 million shares of the company, of which about 8.5 million are being offered by the company and the rest by investors. The expected price of those shares is $28 to $32; at this midpoint of that range, the company would raise $410 million before fees.

The 14 investment banks—which are led by Morgan Stanley, Barclays and BofA Securities—have the option to bring to market another 2.05 million shares held by investors if there’s enough investor appetite.

If the shares sell for their expected price, the valuation of Hinge as a whole will top $2 billion. That is, however, well below the more than $6 billion at which investors valued the venture during their last funding round in October 2021.

In addition to launching their roadshow, Hinge executives and their investment bankers also have updated their prospectus to reflect first-quarter financials, which showed the company continuing on its upward path. After a 2024 in which it posted a net loss of $12 million on revenues of $390 million—versus a 2023 net loss of $108 million on $293 million in sales—Hinge produced net profit of $17.1 million in the first three months of this year, a big improvement from a $26.5 million loss in early 2024.

Revenues jumped to $124 million from nearly $83 million a year earlier, thanks in part to its client roster growing to more than 2,300 from about 1,800 early last year. In terms of profitability, the company’s gross margins clocked in at 81 percent, a 10-point improvement from the first quarter of last year and four points better than its number for all of 2024.