Digital physical therapy provider Hinge Health reported a 50% increase in first-quarter revenue, according to its updated IPO filing released Monday, as the company continues to prepare for a public offering despite turbulent market conditions.
Strong Financial Growth for Digital Physical Therapy Startup
Hinge Health’s revenue reached $123.8 million in the first quarter, up from $82.7 million a year ago, marking a 50% year-over-year increase. This performance also exceeded its previous quarter, which brought in $117.3 million. The company’s cost of goods sold declined slightly, helping boost gross margin to 81%, up from 70% in the same period last year. Operating income stood at $13.1 million, a sharp turnaround from a $31.4 million operating loss a year earlier.
Net Profit Replaces Losses as IPO Plans Progress
Net income rose to $17.1 million after taxes, reversing a net loss of $26.5 million in the first quarter of 2023. Despite the lack of a defined IPO price range, the strong results suggest Hinge Health is moving forward with confidence.
Hinge Health’s Model and Market Timing
Founded in 2014, Hinge Health offers digital physical therapy for musculoskeletal injuries and post-surgical rehabilitation via a mobile app and a wearable device called Enso. The service is typically employer-sponsored, allowing employees to access care remotely. The IPO comes as other tech companies delay market debuts amid volatility tied to President Trump’s tariff measures. Nonetheless, Hinge’s filing indicates it intends to proceed.
Can Hinge Health’s profitability and tech-driven care model convince investors despite the shaky IPO climate?
