Hinge Health Lifts 2026 Revenue Outlook After Faster Growth

The Tip Desk · August 5, 2026 · 3 min read

Second-quarter revenue reached $212.8 million, up 53% from a year earlier, as the company raised full-year guidance to a midpoint of $858 million.

Hinge Health, Inc. (HNGE), the AI-powered digital musculoskeletal care company, reported second-quarter revenue of $212.8 million, up 53% from a year earlier, a faster pace than the 47% year-over-year increase in the first quarter and the 46% increase in the fourth quarter of 2025.

The San Francisco company said the outperformance was driven by continued high member conversion. Co-founder and CEO Daniel Perez said the quarter was ahead of expectations and reflected the ability to deliver a great experience, improve member outcomes and lower client costs.

GAAP gross margin was 86%, compared with 70% in the year-ago quarter. Non-GAAP gross margin was 87%. GAAP income from operations was $40.4 million, versus a GAAP operating loss of $580.7 million in the second quarter of 2025, which included $591.0 million of stock-based compensation. Non-GAAP income from operations rose 136% to $61.5 million, and non-GAAP operating margin was 29%.

GAAP diluted net income was $0.52 a share. Non-GAAP diluted net income was $0.59 a share.

Cash generation more than tripled. Free cash flow was $99.6 million, compared with $32.6 million a year earlier. Net cash provided by operating activities was $101.4 million. Cash, cash equivalents, marketable securities and restricted cash were $475.6 million as of June 30, 2026.

Last-twelve-month calculated billings increased 52% year-over-year to $861.8 million as of June 30, 2026, matching the 52% rate reported as of March 31. The company uses that measure because quarterly revenue recognition does not capture the seasonality of new client launches. Client count rose 24% year-over-year to 2,929 as of June 30, 2026.

Hinge Health raised its full-year 2026 revenue outlook to a range of $856 million to $860 million, or 46% growth at the midpoint, from the $798 million to $804 million range it issued in May. It also raised full-year non-GAAP income from operations guidance to $236 million to $244 million, or 101% growth and a 28% non-GAAP operating margin at the midpoint, from $205 million to $215 million.

For the third quarter of 2026, the company expects revenue of $223 million to $225 million, or 45% growth at the midpoint, and non-GAAP income from operations of $61 million to $63 million, or 104% growth and a 28% non-GAAP operating margin at the midpoint.

The company signed a definitive agreement to acquire Cylinder Health, Inc., a virtual-first digestive healthcare company, for $105 million in cash. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2026. Hinge Health said the deal will combine Cylinder Health’s clinical expertise with its AI-powered care model to deliver an integrated Gastrointestinal Care Program, expected to launch in 2027. Perez said the acquisition marks entry into gastrointestinal care and is another step toward a multi-condition platform.

On July 29, 2026, the board approved a $300 million increase to the share repurchase program, bringing total authorization to $496.5 million after $196.5 million of repurchases as of that date. The company expects to fund repurchases with existing cash and ongoing cash from operations.

Perez said the company is raising revenue and profitability expectations for the remainder of 2026 and is confident in its trajectory for 2027.