Ever wonder what it takes to steer a startup through a stormy market and still aim for the stars? In the world of digital health, where innovation meets relentless challenges, one company stands out for its sheer grit. Hinge Health, a trailblazer in virtual physical therapy, is charging toward an IPO on the New York Stock Exchange despite economic turbulence that’s sidelined others. This isn’t just a story about numbers—it’s about a mindset, a mascot, and a mission to transform lives.
From Humble Beginnings to Wall Street Dreams
Ten years ago, Hinge Health was just an idea sparked by two PhD students in the UK. Fast forward to 2025, and it’s a $6.2 billion powerhouse ready to trade under the ticker HNGE. How did they get here? It’s a tale of resilience, symbolized by an unlikely mascot: the cockroach. Yes, you read that right. For years, the company celebrated its toughest employees with a “Cockroach Award,” complete with a t-shirt and a cash bonus. Why a cockroach? Because, like the insect, Hinge Health thrives in tough conditions.
Resilience isn’t just surviving—it’s thriving when the odds are stacked against you.
– Former Hinge Health executive
The cockroach wasn’t just a quirky gimmick. It shaped the company’s culture. Employees were encouraged to embrace a survive-at-all-costs mentality, a mindset that’s now propelling Hinge through one of the trickiest IPO markets in years. While others like Klarna and StubHub hit pause, Hinge filed its prospectus in March 2025, undeterred by market volatility and new tariff policies shaking Wall Street.
The Digital Health Challenge: A Tough Arena
Let’s be real: the digital health space isn’t for the faint of heart. Since the post-COVID boom, startups in this sector have faced brutal headwinds. Soaring inflation, rising interest rates, and investor skepticism have crushed valuations. Take Teladoc, a former darling whose market cap plummeted from $37 billion to just over $1 billion in a few years. Ouch. Many health-tech business models hyped during the pandemic simply didn’t hold up.
Hinge Health, though, carved a different path. Its focus? Helping people manage musculoskeletal conditions—think chronic back pain, post-surgery rehab, or acute injuries—through a virtual platform. Big employers like Target and Morgan Stanley foot the bill, giving their workers access to Hinge’s app and a wearable device called Enso. The pitch is simple but powerful: reduce pain, cut healthcare costs, and keep surgeries and opioids at bay.
Last year, Hinge’s revenue jumped 33% to $390.4 million, and its net loss shrank to $11.9 million from $108.1 million. Not too shabby for a company navigating a dormant IPO market. Its client base grew 36% to 2,256 employers, and individual members spiked 44% to over 532,300. Numbers like these make you sit up and take notice.
The Cockroach Spirit: A Culture of Grit
Back in Hinge’s early days, the cockroach wasn’t just a mascot—it was a way of life. The company’s London office had a picture of a cockroach named Flossy (after the viral dance move) plastered on the wall. Employees wore their “cockroach squad” t-shirts with pride. The message was clear: no matter how tough things get, we’ll push through.
That spirit came from the top. CEO Daniel Perez, who co-founded Hinge with Gabriel Mecklenburg, instilled a culture of relentless determination. Perez once told his team to think like cockroaches—grimy, tough, and unstoppable. It’s the kind of analogy that sticks with you, right? Over time, the Cockroach Award evolved into the “Movers Awards,” reflecting Hinge’s focus on movement and progress, but the underlying ethos never wavered.
We’re all in this together, and no matter what, we’ll survive together.
– Former Hinge Health vice president
Current employees say this mindset still drives the company. Even as Hinge preps for its public debut, the focus remains on long-term impact. In a letter to investors, Perez wrote, “We have decades of work ahead.” That’s not just corporate speak—it’s a promise to keep pushing, no matter the obstacles.
Who’s Behind the Vision?
Daniel Perez isn’t your typical CEO. At 39, he’s a first-time founder who dropped out of a PhD program at Oxford to chase his entrepreneurial dreams. He and Mecklenburg, Hinge’s executive chairman, met as PhD students in the UK. Both had faced serious injuries—Perez was hit by a car at 13, and Mecklenburg tore his ACL in a judo match. Those experiences shaped their mission to rethink physical therapy.
Perez’s backstory is as compelling as his company’s. Born to Cuban immigrants in Miami, he grew up in a family scraping by on $19,000 a year. His parents’ work ethic left a mark—his dad, a restaurant worker, would call out orders in his sleep. Perez was a brainy kid, graduating high school at 16 and earning a biology degree from Westminster University. His twin brother, David, a lawyer, admits he once thought Daniel was nuts for ditching Oxford. Spoiler: Daniel proved him wrong.
Perez is intense, detail-oriented, and fiercely competitive, say those who’ve worked with him. He’s also a voracious reader, devouring two to four books a month on business and leadership. Ever get a book mailed to you by your boss? At Hinge, that’s just another Tuesday. Perez expects his team to read and discuss ideas, fostering a culture of constant learning.
A Unique Leadership Style
If you’re picturing a laid-back startup vibe, think again. Perez runs a tight ship. He’s known for his “memo culture,” inspired by Amazon, where employees write detailed memos instead of slapping together slide decks. It’s a practice that forces clarity and critical thinking. One former exec admitted it felt “insane” at first but ended up sharpening their skills.
Hiring at Hinge is no walk in the park either. The process is rigorous, designed to weed out anyone who can’t keep up with the company’s pace. Low turnover among senior leaders suggests it works. Perez’s hands-on style—part visionary, part taskmaster—has earned him respect, even if it ruffles feathers. “He’s one of those rare founders who can go all the way,” said a former colleague.
Hinge’s Leadership Formula: 50% Vision 30% Discipline 20% Grit
Why Now? The IPO Gamble
Timing an IPO is like trying to catch lightning in a bottle. The market’s been a mess since 2021, with inflation, rate hikes, and now tariff worries sending stocks into a tailspin. The Nasdaq just had its worst quarter since 2022. Yet Hinge is forging ahead, betting on its strong fundamentals and a massive market—musculoskeletal conditions affect 1.7 billion people globally.
Is it risky? You bet. But Hinge’s $1 billion in funding from heavyweights like Tiger Global and Insight Partners gives it some cushion. Its last valuation in 2021 pegged it at $6.2 billion, and with revenue climbing, it’s not hard to see why Perez is swinging for the fences. Still, I can’t help but wonder: is this the right moment, or is Hinge’s cockroach spirit pushing it into a storm it can’t weather?
| Metric | 2023 | 2024 |
| Revenue | $292.3M | $390.4M |
| Net Loss | $108.1M | $11.9M |
| Clients | 1,659 | 2,256 |
| Members | 369,000 | 532,300 |
What’s Next for Hinge?
Hinge’s IPO isn’t just about cashing out—it’s about scaling a mission. The company wants to reach more people, refine its tech, and keep cutting healthcare costs. Its Enso device, which uses electrical nerve stimulation, is a game-changer for pain management. But the road ahead won’t be easy. Competition is fierce, and public markets are unforgiving.
Personally, I’m rooting for Hinge. There’s something inspiring about a company that embraces its inner cockroach, refuses to quit, and bets big on a better future. Whether it soars or stumbles, Hinge’s journey is a masterclass in resilience. What do you think—can they pull it off?
Hinge Health’s story is far from over. As it steps onto the public stage, it carries a decade of lessons, a culture of grit, and a vision to change how we manage pain. Win or lose, this is one startup worth watching.
