Hinge Health, Inc.

What they do

Hinge Health provides personalized, AI-powered MSK care (acute injury, chronic pain, post-surgical rehab) and migraine care through its TrueMotion motion-tracking technology, a proprietary electrical nerve stimulation wearable (Enso), and an AI-supported care team of licensed physical therapists, physicians, and health coaches. It sells primarily through a direct sales force and over 60 partners (including the five largest national health plans and top three PBMs), often as the sole digital MSK or migraine provider for clients' contracted lives under average three-year contracts. The company also launched HingeSelect, an in-person provider network, to offer end-to-end MSK care.

Revenue drivers

• Self-insured employer contracts — Primary revenue source: per-member or per-engagement fees from self-insured employers (including public sector and labor unions) for access to MSK and migraine care programs; client count grew 24% YoY to 2,929 as of June 30, 2026.
• Partnership agreements — Revenue from health plans, TPAs, and PBMs that integrate Hinge Health into their offerings; partners include the five largest national health plans and top three PBMs, expanding contracted lives to 25 million as of December 31, 2025.
• New care programs — Expansion into migraine (launched 2026) and planned gastrointestinal care (via Cylinder Health acquisition) adds incremental revenue streams beyond core MSK; HingeSelect in-person network launched in 2025 also contributes.

Recent performance

In Q2 2026, revenue rose 53% year-over-year to $212.8 million (vs. $139.1 million in Q2 2025). GAAP diluted EPS was $0.52, compared to a loss of $13.10 in Q2 2025; non-GAAP diluted EPS was $0.59. Operating cash flow was $101.4 million and free cash flow $99.6 million, both up strongly from the prior year. Full-year 2025 net loss was $528.3 million, reflecting $591.0 million in Q2 2025 stock-based compensation; accumulated deficit was $1.05 billion at year-end 2025. Cash and marketable securities were $475.6 million at June 30, 2026.

Strategy

Management is focused on expanding its multi-condition platform, moving beyond MSK into migraine (launched 2026) and gastrointestinal care via the pending $105 million cash acquisition of Cylinder Health, with a GI program expected in 2027. The company continues to invest in AI (TrueMotion) to reduce care-team human hours by ~97% and scale delivery, while improving member experience and lowering client costs. It also leverages its partner network to drive efficient client growth, and is using a $300 million share repurchase authorization (after repurchasing $196.5 million) to return capital.

Risks

• History of net losses — Annual net losses of $528.3 million in 2025 and $11.9 million in 2024, with an accumulated deficit of $1.05 billion; profitability not assured.
• Dependence on partners and clients — Revenue relies on retaining self-insured employer clients and partner relationships (health plans, PBMs); loss of a major partner could materially hurt results.
• Competition and market acceptance — The digital MSK and migraine market is competitive; if remote care adoption or HingeSelect fails to gain traction, growth may slow.
• Regulatory and AI risks — Compliance with FDA and state telehealth regulations, plus evolving AI-in-healthcare laws, could increase costs or limit platform use.

Outlook

For Q3 2026, management guides revenue of $223–225 million (45% YoY growth at midpoint) and non-GAAP operating income of $61–63 million. Full-year 2026 revenue guidance was raised to $856–860 million (46% YoY growth), with non-GAAP operating income of $236–244 million (28% operating margin at midpoint). The Cylinder Health acquisition is expected to close in Q3 2026, adding a Gastrointestinal Care Program targeted for 2027.