Hinge Health opens at $39.25 per share after pricing IPO at top end of range

CNBC

22-05-2025

Shares of Hinge Health popped in their debut on the New York Stock Exchange on Thursday after the digital physical therapy startup raised about $273 million in its initial public offering.
The stock opened at $39.25, above its $32 IPO price. Hinge sold 8.52 million shares in the offering, while the total offering was for 13.7 million shares, with the balance being sold by existing shareholders.
Hinge, founded in 2014, uses software to help patients treat acute musculoskeletal injuries, chronic pain and carry out post-surgery rehabilitation from anywhere.
The San Francisco-based company filed its initial prospectus in March and updated the document earlier this month with an expected pricing range of $28 to $32.
Wall Street and the digital health sector have been watching Hinge's debut closely, as it will shine some light on investors' appetite for new health tech solutions.
The broader tech IPO market has been in an extended drought since late 2021, when soaring inflation and rising interest rates pushed investors out of risky assets. Within digital health, it's been almost completely dormant. Hinge is leading the charge, with virtual chronic care company Omada Health filing to go public earlier this month.
"Health care is tough, absolutely, but we're very different from any of the digital health companies that have come before," Hinge CEO Daniel Perez told CNBC's "Money Movers" on Thursday. "Our technology is actually automating the delivery of care itself, and that's why a lot of investors have been so interested in Hinge Health."
Perez and Hinge's Executive Chairman Gabriel Mecklenburg co-founded the company after experiencing personal struggles with physical rehabilitation. Perez broke an arm and a leg after he was hit by a car, and Mecklenburg tore his anterior cruciate ligament during a judo match. Both men went through about 12 months of physical therapy.
At the IPO price, Hinge is worth about $2.6 billion, though that number could be higher on a fully diluted basis. That's down significantly from a private market valuation of $6.2 billion in October 2021, the last time the company raised outside funding.
Hinge has raised more than $1 billion from investors including Insight Partners, Tiger Global Management, Coatue Management and Atomico.
Ben Blume, a partner at Atomico, said Hinge's ability to scale has "truly set them apart." The firm led Hinge's Series A funding round in 2017.
"Hinge Health has grown into a clear category leader, improving the lives of people who are living with chronic pain," Blume said in a statement to CNBC. "Their success is a testament to the power of mission-driven innovation."
Hinge is trading on the NYSE under the ticker symbol "HNGE."