A deeper dive on Hinge vs Omada

Hinge is going out on the NYSE; Omada on NASDAQ, per recent S1 filings. It’s a momentous moment for digital health. Some are saying it’s the end of digital health IPO winter, meaning for years we had very few companies going public.

To refresh your memory:

• Hinge Health provides employees and health plan members with virtual physical therapy and musculoskeletal care. It offers education, a personalized program of movements and stretches, with a goal of helping people with joint or muscle pain. Some of these people will then avoid expensive and unnecessary surgeries as a result.
• Omada Health is a virtual care delivery program that helps people achieve their health goals by connecting them to a care team and other resources. It focuses primarily on chronic cardiovascular disease. It also mostly sells to employers and health plans.

It’s hard not to compare the two companies, particularly given the IPO timing and the similarities between them. Both sell to employers, and one could argue that they’re even slightly competitive in the musculoskeletal (MSK) category because of Omada’s acquisition of Physera. I would argue that Omada and Hinge are also second generation digital health companies, meaning they’re of a different breed than some of the telemedicine players like Teladoc that went public many years ago.

But these businesses are actually very different.

Let’s talk about it in more detail, and I’ll share some thoughts along the way as someone who’s paid very close attention to both companies over the years!

Financials

Here’s a little side-by-side snapshot:

Metric (FY‑2024)

Omada Health

Hinge Health

Net revenue

$169.8 M (+38 % YoY)

$390.4 M (+33 % YoY)

GAAP gross margin

61 % SEC

77 % SEC

Operating loss

–$42.7 M (–25 % margin)

–$31.9 M (–8 % margin)

Net loss

–$47.1 M SEC

–$11.9 M SEC

Cash & mkt. secs

~$235 M post‑raise (pro forma)

$467 M cash + securities SEC

Customers

2 000+; 20 M covered lives; 90 % retention

2 250+; 20 M lives; 98 % retention

Condition beach‑head

Diabetes‑prevention → full cardiometabolic

MSK PT → pelvic health & fall prevention

At a glance, Hinge appears to be in a stronger position moving into the IPO - and most of the Internet commentary so far seems to agree with that. It has larger revenues, similar growth, a higher gross margin and is moving into being profitable. MSK is a very large total addressable market (TAM), and it’s a huge driver of cost for both employers and health plans. What Hinge offers is convenient access to physical therapy, increasingly powered by AI, that members can take advantage of to potentially avoid expensive and unnecessary surgeries.