When the digital health market needed a hero, Hinge Health answered the call.
Hinge officially filed for its IPO, braving the biggest stock market downturn in recent memory to pull the tech-enabled services category out of a years-long slump.
- It’s a bold move, but Hinge has the business to back it up. Using a combination of virtual care and AI, Hinge delivers MSK treatment programs with comparable outcomes to traditional physical therapy at a fraction of the cost.
- Hinge has apparently been able to automate 95% of MSK care delivery, saving its clients (primarily employers and payors) an estimated $2,387 per member per year.
Diving into the S-1, Hinge grew its revenue by 33% to $390M in 2024. It also managed to cut its net loss from $108M down to just $12M, generating 77% gross margins in the process.
- Hinge reported 532k members and ~200M contracted lives across 2,250 clients, and counts nearly half of the Fortune 500 as clients.
- Great stats all around, but a nice soundbite from the S-1 was that “current contracted lives only represent 5% of our total addressable market,” and Hinge is now on the hunt for more growth through commercial plans and Medicare Advantage.
Even with the impressive metrics, Hinge’s last private valuation came in at a rich $6.2B at the height of the pandemic, meaning that it’ll need around a 15X revenue multiple just to match it.
- It’s not out of the question, but Hims & Hers has been one of the lone bright spots for public digital health companies, and it’s trading at just 5X revenue.
The entire tech-enabled services market feels like it hinges on this IPO, at least if you’ve been following this week’s reaction to the S-1.
- Hinge is going to be the first health tech startup to go public since Waystar last June, and VCs have been hesitant to invest in the category given the lack of major exits.
- If Hinge’s debut goes well, it would restore some much-needed confidence in the market, and potentially even kick off a revival in the dormant IPO landscape.
The Takeaway
Hinge is a true disrupter, with an outcomes-driven alternative to traditional physical therapy and a ton of momentum in one of healthcare’s largest markets. We’ll definitely be rooting for them when they ring the bell.
