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Investing.com -- Today’s IPO for healthcare service company Hinge Health Inc (NYSE:HNGE) opened for trading at $39.25 per share after pricing 13,666,000 shares of common stock at $32 per share, the top end of the expected $28-$32 range.
The company is selling 8,522,528 shares in the offering and certain selling stockholders are selling the other 5,143,472 shares.
Hinge Health and the selling shareholders raised $437 million in the offering.
The company is valued at approximately $3.2 billion based on the opening price.
The offering was led by Morgan Stanley (NYSE:MS), Barclays, and BofA Securities. The underwriters will have the option to purchase up to an additional 2,049,900 shares.
Hinge Health is a digital health company transforming musculoskeletal (MSK) care by leveraging AI-powered technology to deliver scalable, personalized, and cost-effective treatment for joint and muscle conditions.
Its platform integrates motion tracking, a proprietary FDA-cleared nerve stimulation device, and an AI-supported care team to automate and enhance care delivery across a wide MSK spectrum—from prevention and chronic pain management to post-surgical recovery.
By reducing human care hours by an estimated 95% while maintaining high member satisfaction, Hinge Health addresses the inefficiencies of traditional physical therapy and challenges in healthcare reimbursement through innovative billing models and broad accessibility.
Serving over 20 million contracted lives, including nearly half of Fortune 100 companies, Hinge Health offers a seamless, on-demand digital experience that empowers members to engage in therapy anytime, anywhere.
Hinge Health has demonstrated strong and efficient growth through a scalable, partner-driven go-to-market model that supports recurring revenue and high client retention. With a direct sales force and strategic partnerships—including all five of the largest national health plans and top pharmacy benefit managers—Hinge Health typically becomes the exclusive digital MSK care provider for its clients, most of whom sign three-year contracts.
This approach has led to a 117% net dollar retention rate and a 98% client retention rate as of the end of 2024, alongside a high client Net Promoter Score of 87. The company has expanded its member base to over 532,000 and client base to more than 2,250 by the end of 2024, achieving $390.4 million in revenue for the year, a 33% year-over-year increase.
With gross margins rising to 77% in 2024 and 81% in Q1 2025, and a turnaround from negative to positive free cash flow, Hinge Health is showing improved financial health. Despite a cumulative deficit of over $500 million, the company posted a net profit in Q1 2025, indicating momentum toward sustained profitability.