Hinge Health Raises Guidance Fourth Straight Quarter, Buys Into GI Care
Hinge Health posted 53% revenue growth to $212.8 million and expanded its buyback while agreeing to buy Cylinder Health for $105 million to move beyond musculoskeletal care.
Hinge Health (HNGE) reported second-quarter revenue of $212.8 million, up 53% from a year earlier. The growth rate marked the third consecutive quarter of acceleration, up from 47% in the first quarter and 46% in the fourth quarter of 2024.
The quarter's more notable shift was on the cost side. Non-GAAP operating margin reached 29%, up from 19% a year earlier and from 19% as recently as the first quarter of 2025, while non-GAAP income from operations grew 136% year-over-year to $61.5 million. GAAP gross margin climbed to 86% from 70% in the year-ago period, continuing a steady march that took the metric from 81% to 85% between the first quarters of 2024 and 2025 and from 82% to 84% between the fourth quarters. GAAP income from operations turned positive at $40.4 million, reversing a $580.7 million loss in the second quarter of 2024 that had been driven by $591.0 million in IPO-related stock-based compensation, a one-time item that makes year-over-year GAAP comparisons in 2025 look more dramatic than the underlying trend.
Cash generation improved alongside margins. Free cash flow more than tripled to $99.6 million, a 47% margin, from $32.6 million a year earlier, extending gains already visible in the first quarter, when free cash flow rose to $41.6 million from $4.2 million, and in full-year 2024, when it grew 297% to $179.6 million.
Underlying demand metrics grew more modestly than revenue. Trailing-twelve-month calculated billings rose 52% to $861.8 million, roughly matching the prior quarter's pace but decelerating from the growth embedded in full-year 2024 billings of $671.4 million, up 44%. Client count rose 24% to 2,929, a rate that has held in the low-to-mid 20% range for three straight quarters. The company also stopped disclosing member count, contracted lives, eligible lives and its Rule of 40 metric, all of which appeared in the fourth-quarter 2024 release, where members had grown 47% to 782,890 and Rule of 40 stood at 81 versus 45 a year earlier.
Hinge Health raised full-year revenue guidance to a range of $856 million to $860 million, implying 46% growth at the midpoint, up from the $818 million to $824 million range set on June 9. That June guidance had itself followed an $801 million implied figure given May 5 and an original $732 million to $742 million range issued with fourth-quarter results in February, marking four consecutive upward revisions that have added roughly $121 million to the midpoint and lifted the projected growth rate from 25% to 46%. Full-year non-GAAP operating income guidance rose in step, to $236 million to $244 million from $217 million to $227 million, implying a 28% margin at the midpoint. For the third quarter, the company guided to revenue of $223 million to $225 million, 45% growth at the midpoint, and a 28% non-GAAP operating margin.
Hinge Health agreed to acquire Cylinder Health for $105 million in cash, a deal expected to close in the third quarter that extends the company into gastrointestinal care, its third clinical category after musculoskeletal and the Migraine Care Program launched earlier in 2025, with a GI program launch planned for 2026. The board separately increased the share repurchase authorization by $300 million on July 29, bringing the total to $496.5 million after $196.5 million already repurchased under the original $250 million program approved in November 2024.