Hinge Health IPO signals comeback for digital health

USA – Hinge Health has made a strong entrance on the New York Stock Exchange (NYSE), signaling renewed investor confidence in digital health.

The musculoskeletal care company raised US$ 437.3 million in its initial public offering (IPO), opening at US$ 39.25 per share, 23% higher than its offer price of US$ 32.

This debut is one of the first major digital health IPOs in years and may serve as a turning point for the sector.

According to PitchBook healthcare analyst Aaron DeGagne, the listing itself is already a win.

“As long as it stays flat, it’s a win for the sector,” he said, reflecting the cautious optimism among investors after the digital health IPO slowdown that followed the 2020–2021 boom.

Founded in 2014, Hinge Health offers digital physical therapy and musculoskeletal care powered by AI-driven motion sensors and wearable technology that delivers nerve stimulation.

The company has secured substantial venture capital funding over the years and filed to go public in March 2025. The IPO pricing hit the top of its expected range—an encouraging signal for similar startups.

A key factor behind Hinge’s successful debut is its recent shift toward profitability. In Q1 2025, the company reported a net income of US$ 17.1 million, a sharp turnaround from a US$ 26.5 million loss in the same period the previous year.

This profitability helped build investor trust, especially after earlier IPOs in the sector fell short of expectations.

DeGagne pointed out that public investors have grown cautious after disappointing performances by digital health stocks that went public during the pandemic boom. “Profitability was a huge item to have here,” he emphasized.

With Hinge’s strong debut, other digital health companies may soon follow suit. Chronic care platform Omada Health recently filed to go public, while firms like Sword Health, Spring Health, and Maven are reportedly exploring IPO options.

However, experts note that broader market trends will play a major role in shaping the IPO landscape. For instance, global market volatility caused by political moves, such as tariffs, has already delayed listings for companies like Klarna and StubHub.