Why the Hinge Health IPO is so important for digital health (Second Opinion)

Hinge Health’s long-anticipated IPO is generating significant buzz as the first major digital health offering since Waystar’s debut in 2024, raising questions about whether the public markets will value Hinge at or near its prior $6.2 billion private valuation. While the company has shown impressive revenue growth to $390.4M in 2024 and improved margins, concerns remain about future growth beyond the saturated self-insured employer market and its ability to expand beyond musculoskeletal (MSK) care into adjacent areas like behavioral health or GI. As a leader in digital MSK, Hinge faces pressure to either build or buy capabilities in new clinical categories to meet employers’ growing demand for consolidated solutions.