Key Highlights

  • HNGE reported third-quarter 2026 Revenue of $235.0 million, up 52% from $154.2 million a year earlier.
  • GAAP Net Income was $57.4 million, or $0.66 per diluted share, versus a net loss of $1.8 million, or $0.02 per share.
  • Non-GAAP Operating Margin reached 33%, up from 20%, as non-GAAP income from operations rose 154% to $77.2 million.
  • Free Cash Flow was $112.7 million, a 48% margin, compared with $81.3 million a year earlier.
  • Full-year 2026 revenue guidance was raised to $879 million to $881 million, about 50% growth at the midpoint.

Yield Gains Lift Third-Quarter Revenue 52% to $235.0 Million

Hinge Health (NYSE:HNGE) reported third-quarter 2026 results on Nov 2, 2026, for the quarter ended Sep 30, 2026. Revenue rose 52% to $235.0 million from $154.2 million, ahead of the company's own guidance of $223 million to $225 million. Management said the beat came entirely from billings outperformance, driven by stronger-than-expected yield, meaning the share of eligible members who enroll and engage.

Hinge Health delivers digital care for musculoskeletal conditions through an AI-powered model, connected hardware and access to clinicians, and has added migraine and gastrointestinal programs. Last-twelve-month calculated billings grew 54% to $960.3 million, and clients increased 28% to 3,270 from 2,560.

Management attributed the Yield gain to targeted enrollment campaigns, where members joining rose almost 75%, and to renewals, up almost 25%, calling both structural improvements.

Operating Margin Widens to 33% and GAAP Profit Replaces a Year-Ago Loss

GAAP gross margin was 87%, up from 82%, and non-GAAP gross margin was 88%, up from 83%, helped by lower hardware costs, AI and automation. GAAP income from operations was $50.3 million, a 21% margin, versus a $6.1 million loss a year ago.

Non-GAAP income from operations of $77.2 million compared with the company's guided range of $61 million to $63 million. Non-GAAP Diluted Earnings per Share were $0.71, up from $0.32.

Total operating expenses fell to 55% of revenue from 63%, according to management. Operating Cash Flow rose to $114.6 million from $82.4 million.

Cash Returns, Cylinder Acquisition and a President's Planned Exit

Cash, equivalents, marketable securities and restricted cash totaled $358.5 million at Sep 30, 2026. In the quarter the company repurchased about 296,000 shares for $26 million, and outflows from M&A and net share settlements on employee stock vesting added another $209 million.

The company recently acquired Cylinder Health, giving it a head start in its gastrointestinal program. Its GI client base has grown about 40% since the deal was announced in August, while clients for its musculoskeletal program are up almost 30% and migraine clients have nearly doubled since last quarter.

The company also said its president will step down on Jan 1, 2027 and join the board on Jan 4, 2027. The chief commercial officer will then lead the commercial organization.

Raised 2026 Guidance Points to a 30% Operating Margin and an Integrated GI Launch in 2027

For the fourth quarter, Hinge Health expects revenue of $249 million to $251 million, about 46% growth at the midpoint, and non-GAAP income from operations of $81 million to $83 million. For 2026, it lifted revenue guidance to $879 million to $881 million, from $856 million to $860 million, and non-GAAP Operating Income guidance to $266 million to $268 million, a 30% margin at the midpoint.

Management now expects full-year yield of 4.6%, up from 4.45%, and about 25.5 million average eligible lives. The integrated GI program is targeted for summer 2027, with meaningful revenue expected in 2028.