Hinge Health Skyrockets On Wall Street Debut, Signals Comeback For Health-Tech IPOs: '...Tilts Things...Towards Potentially More Listings,' Says Analyst

Shares of digital physical therapy firm, Hinge Health (NYSE:HNGE) made a strong debut on the New York Stock Exchange on Thursday.

What Happened: The San Francisco-based digital physical therapy firm saw its shares surge in initial trading following a successful IPO. Hinge Health, which was established in 2014, raised approximately $273 million from the IPO. The stock opened at $39.25 per share, a 23% increase from its IPO price of $32. By the end of trading, the shares had risen 17% to close at $37.56, pushing the company’s market capitalization beyond $3 billion, as reported by CNBC.

The company issued 8.52 million shares as part of the offering, while the total offering comprised 13.7 million shares, with the remaining shares sold by existing shareholders. Hinge Health’s software aids patients in treating acute musculoskeletal injuries, managing chronic pain and conducting post-surgery rehabilitation remotely.

CEO Daniel Perez told Yahoo Finance, “Our vision is to use technology to automate the delivery of care and that is going to take 10, 20, 30 plus years to continue to realize that vision as we chew across healthcare.”

Perez further stated that the company is currently focused on physical therapy, using technology to automate about 95% of clinician hours. This has improved outcomes, user experience and reduced costs. While 20 million people already have access to Hinge, the company sees this as just the beginning.

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Why It Matters: Hinge Health’s successful IPO comes on the heels of the company’s announcement in March 2025 that it was seeking to raise $500 million via an IPO. The company, a provider of wearable devices that help reduce pain and improve musculoskeletal health, had filed an SEC document for the IPO.

Hinge Health’s strong debut has drawn significant attention from both Wall Street and the digital health industry. It may signal a revived investor appetite for health-tech solutions, despite a sluggish tech IPO market impacted by high inflation and rising interest rates since late 2021. In the digital health space, activity has been nearly stagnant. However, Hinge is taking the lead, with virtual chronic care provider Omada Health having filed for an IPO earlier this month.

Aaron DeGagne, senior healthcare analyst at PitchBook, told Healthcare Dive that it’s a win for the sector. "If shares start to climb significantly, I think that tilts things more towards potentially more listings,” stated DeGagne.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.