The IPO market has witnessed steady activity so far this year, despite fluctuations in momentum across months. The technology industry continues to dominate the IPO scene, followed by healthcare companies. Joining them, Hinge Health, Inc. recently revealed plans to go public.
The Offering
The San Francisco-based digital health company has filed papers with the Securities and Exchange Commission to sell around 13.7 million shares of its common stock in an initial public offering – around 8.5 million shares by the company and 5.2 million shares by selling stockholders. The anticipated offer price for Class-A common stock is between $28.00 per share and $32.00 per share.
The company targets a valuation of up to $2.6 billion in the IPO. The New York Stock Exchange has approved its request to list the stock under the symbol HNGE. Morgan Stanley, Barclays, and BofA Securities are leading the group of underwriters. The estimated IPO date is May 22, 2025.
Automated Care
Established in 2014, the company provides automated care for joint and muscle health, with the support of advanced technology including AI. This model allows it to reduce costs and improve clinical outcomes. Hinge Health offers comprehensive care for the musculoskeletal system (MSK) through multiple programs. The platform is designed to treat and prevent MSK pain in different patient types — from those suffering from chronic pain to those considering surgical interventions or undergoing post-surgery rehabilitation.
The Hinge Health leadership expects net proceeds of $230.7 million from the offering, based on an assumed offer price of $30.00 per share. It plans to use the amount primarily to satisfy tax withholding and remittance obligations related to RSU Net Settlement. The remaining proceeds will be used for general corporate purposes, working capital, and to fund growth strategies and initiatives.
Key Metrics
At the end of 2024, Hinge Health had over 532,000 members and more than 2,250 clients, up 43% and 36%, respectively, from the previous year. Last year, revenues increased by a third to $390.4 million from $292.7 million in 2023. The company incurred a net loss of $11.9 million in 2024, which is sharply narrower than the $108.1 million loss it reported in the prior year.
In the three months ended March 2025, revenues jumped 50% year-over-year to $123.8 million. The company reported net income attributable to shareholders of $121.3 million or $7.91 per share for the quarter, compared to a loss of $26.5 million or $1.98 per share in the corresponding quarter last year.