Hinge Health, a digital physical therapy company, recently went public with a strong debut, reaching a $2.6 billion valuation and recording an 81% gross margin and $17.1 million profit in Q1 2025. Co-founded in 2014 by Daniel Perez and Gabriel Mecklenburg, Hinge Health provides virtual care for musculoskeletal conditions and utilizes AI to significantly reduce clinician hours and enhance care delivery. The company uses AI-powered tools for motion tracking and care coordination and aims to expand into additional healthcare specialties, further automating care with technology.
Despite initial concerns about market volatility due to political tariffs, Hinge Health maintained momentum and resumed its IPO, buoyed by improved cash flow and sustained demand. Its business model targets employers and health plans to cut healthcare costs, which has proven advantageous during economic fluctuations. CEO Daniel Perez emphasized the importance of sustainability and profitability for future digital health IPOs, contrasting Hinge Health’s approach with competitors like Omada and Sword Health. Looking forward, Hinge Health plans to deepen its expansion into musculoskeletal care and introduce AI-enhanced services in adjacent healthcare fields by 2026.
