Investing in companies that have recently gone public is a strategy for individuals with a higher risk appetite. Typically, companies list on an exchange via an initial public offering to raise money and fund their expansion plans. So, while investors can “get in early” and be part of a company’s growth story, you also need to be ready for a volatile ride at least in the first few years. 

Hinge Health (HNGE), a health-tech platform that went public last week, is valued at $3.35 billion. It develops healthcare software for joint and muscle health. The platform is designed to address musculoskeletal care, acute injury, chronic pain, and post-surgical rehabilitation. Many refer to these offerings as “digital physical therapy.” It also provides various administrative and operational support services. 

Let’s see if HNGE stock is a good buy right now. 

Is HNGE Stock a Good Buy Right Now?

Hinge Health delivered an impressive market debut, with shares surging 17% on Thursday, May 22 to close at $37.56 on the New York Stock Exchange. The San Francisco-based startup raised approximately $273 million by pricing 8.52 million shares at $32 each, above its expected range of $28-$32.

The strong performance pushed Hinge Health’s market capitalization beyond $3 billion, though this represents a discount from its peak private valuation of $6.2 billion, which was achieved in October 2021. The company sold 8.52 million shares, while existing shareholders divested an additional 5.18 million shares in the offering.

Founded in 2014 by CEO Daniel Perez and Executive Chairman Gabriel Mecklenburg following their personal rehabilitation experiences, the platform automates care delivery rather than simply digitizing traditional healthcare approaches.

Hinge Health Aims to Disrupt the MSK Care Vertical

Hinge Health is revolutionizing musculoskeletal (MSK) healthcare by leveraging artificial intelligence and automation to deliver scalable, personalized care that reduces costs while improving outcomes. Its innovative platform addresses the $1.3 trillion MSK healthcare burden in the United States, where approximately 40% of adults suffer from MSK disorders.

The platform combines AI-powered motion tracking technology called TrueMotion with a proprietary FDA-cleared wearable device, Enso, to deliver largely automated physical therapy care. This technology-driven approach has reduced traditional physical therapy care team hours by approximately 95% while maintaining high member satisfaction and clinical effectiveness.

Hinge Health serves over 532,000 members across more than 2,250 clients, including 49% of Fortune 100 companies. Its addressable market spans self-insured employers, Medicare Advantage, and government programs, with current contracted lives representing only 5% of the total market opportunity.

Hinge Health demonstrated robust growth with revenue increasing 50% year-over-year to $123.8 million in Q1 2025, achieving an impressive 81% gross margin. Annual revenue reached $390.4 million in 2024, up 33% from the previous year. 

Moreover, the health tech company is profitable, ending 2024 with a free cash flow of $45.2 million. Hinge Health maintains exceptional client retention at 98% with a net promoter score of 87, while its 117% net dollar retention demonstrates strong expansion within existing accounts. The platform’s ability to deliver care without copays or deductibles while improving access positions it advantageously as healthcare costs continue rising industry-wide.

Priced at eight times trailing sales, HNGE stock is not too expensive given its estimated growth rates and widening profit margins.