A New Era for IPOs: Hinge Health and MNTN Lead the Charge in Digital Health and Ad-Tech Recovery

The IPO market, long stifled by post-pandemic skepticism and macroeconomic volatility, now faces a pivotal moment. Two high-growth companies—Hinge Health (HNGE) and MNTN (MNTN)—have emerged as critical bellwethers, their robust post-IPO performances signaling a potential revival of investor confidence in underfollowed sectors. For contrarian investors, these firms represent not just fleeting gains but strategic entry points into digital health and ad-tech markets poised for sustained growth.

Hinge Health: Digital Health’s Turnaround Story

Hinge Health’s Q1 2025 results underscore a seismic shift in its trajectory. Revenue surged 50% year-over-year to $123.8 million, while net income flipped from a $26.5 million loss to a $17.1 million profit—a testament to operational leverage and margin expansion (gross margin rose to 81%). Its digital physical therapy platform, combining AI, motion tracking, and FDA-cleared devices, now serves 20 million contracted lives, including nearly half of Fortune 100 companies. With a 98% client retention rate and 117% net dollar retention, Hinge’s model is scaling with unprecedented efficiency.

The IPO itself was a masterclass in pricing discipline. Hinge priced its shares at $32—the top of its $28–$32 range—raising $437 million. While its valuation dropped from a $6.2 billion private-market peak to ~$3.2 billion post-IPO, the stock’s 23% jump on debut (to $39.25) reflects investor recognition of its scalable, defensible business.

Why Buy Now?
- Market Leadership: Hinge dominates the $420 billion musculoskeletal care market, reducing human care hours by 95% while maintaining an 87 Net Promoter Score.
- Margin Momentum: Gross margins at 77% (2024) to 81% (Q1 2025) signal a path to sustained profitability.
- Macro Resilience: Partnerships with all five major health plans and PBMs create a sticky revenue stream, insulated from economic cycles.

Risks: Valuation contraction from private highs; regulatory scrutiny of digital health’s cost-effectiveness.

MNTN: The CTV Ad-Tech Disruptor

MNTN’s IPO debut on May 22, 2025, was a fireworks show. Shares opened at $21—31% above the $16 offering price—and briefly hit $25.82, valuing the company at $1.2 billion. The surge wasn’t random: MNTN’s PTV platform targets a $33.4 billion connected TV (CTV) ad market, offering AI-driven, performance-based ads to small businesses—a segment ignored by legacy TV networks.

Key metrics:
- Q1 2025 revenue rose 48% to $65 million, with 92% of 2024 PTV revenue coming from SMBs.
- 96% of customers had no prior TV ad experience, proving MNTN’s ability to tap underserved markets.
- Adjusted EBITDA jumped to $9.4 million (vs. $85K in 2023), signaling operational efficiency.

Despite a net loss of $21.1 million in Q1, MNTN’s $187 million IPO haul (at 14x demand) highlights investor faith in its scalability. Its “verified visits” technology and self-service automation reduce ad fraud while enabling SMBs to compete with enterprise brands on platforms like HBO Max and ESPN.

Why Buy Now?
- CTV’s Growth Tailwind: The CTV ad market is projected to hit $42 billion by 2027, with MNTN positioned as a “matchmaker” between brands and consumers.
- Untapped Market: SMBs represent 80% of U.S. businesses—MNTN’s focus here creates a massive addressable market.
- Leadership Credibility: Ryan Reynolds’ role as Chief Creative Officer adds star power to its tech-driven model.

Risks: Dependency on SMBs (vulnerable to economic downturns); net losses persisting longer than expected.

Why These IPOs Signal a Market Turn?

Hinge and MNTN defy the “IPO drought” narrative, offering three critical signals:

1. Pricing Premiums as Sentiment Markers: Both priced at the top of their ranges, with shares surging post-IPO—a stark contrast to 2022’s IPO slump. This suggests investors are willing to pay up for sector-specific growth stories.
2. Valuation Discipline: Neither company demanded exorbitant multiples. Hinge’s ~$3.2 billion valuation and MNTN’s $1.2 billion reflect earnings-based rigor, not speculative hype.
3. Sector-Specific Catalysts: Digital health’s cost-reduction potential and CTV’s ad-tech disruption are macro-agnostic growth drivers—ideal for a volatile economy.

Invest Now: A Contrarian’s Playbook

For investors, this is a high-reward, high-conviction moment:

• Allocate to Hinge (HNGE): Its 50% revenue growth and margin expansion make it a buy at current levels. Track Q2 2025 results for further proof of scalability.
• Take a Position in MNTN (MNTN): Its 48% revenue growth and SMB market dominance justify a $1.2 billion valuation. Monitor CTV ad spend trends and net dollar retention.

The Bottom Line: Hinge and MNTN are not just IPOs—they’re sector catalysts. Their success resets expectations for digital health and ad-tech, proving that high-growth companies can thrive even in a cautious market. For investors willing to look past short-term volatility, these stocks offer a rare chance to board a recovery train at its earliest, most advantageous stop.

Act now—before the herd follows.