Company Introduction
Hinge Health is a digital physical therapy company that plans to raise $437 million (about ₹3,650 crores) through an IPO (Initial Public Offering). Its stock will be listed on the NYSE under the ticker name “HNGE”.
Assessment and Funding
- The company will sell 13.7 million shares, priced between $28 and $32 per share.
- This could value the company at around $2.42 billion — well below its 2021 private valuation of $6.2 billion.
- This reflects the balancing of valuations in the digital health sector.
Financial position
- Hinge Health’s revenue in Q1 2025 was $123.8 million, up 50% from last year.
- The company posted a net profit for the first time at $17.1 million, compared to a loss of $26.5 million in the same period last year.
Market Situation
- Investors in the digital health sector are now focused on “profitability” rather than just growth.
- The “Rule of 40” (revenue growth + profit margin ≥ 40%) is being considered the new investment criterion.
- Hinge Health’s growth rate of 33%, gross margin of 78% and profitability make it a strong candidate.
Timing of market entry
- Hinge Health has decided to go ahead with an IPO despite market uncertainty, while companies like Klarna and StubHub have postponed it.
- While IPO volumes declined 56% in April 2025, Hinge Health’s move reflects confidence in its business model and financial strength.
Future Direction
This listing of Hinge Health can also open the way for other digital health companies like Omada Health, which was almost missing from the IPO market since 2021.
Conclusion:
Hinge Health’s IPO represents the beginning of a new era for the digital health sector — where not just growth, but profitability and strong financial fundamentals are key. This IPO is seen as an important step amid the current market uncertainties.
