Revenue
$154 million for Q3, representing 53% year-over-year growth. This growth was attributed to strong billings performance and the continued strength of underlying fundamentals.
Last 12 Months Calculated Billings
$624 million, up 50% compared to the same period last year. This reflects the strength of current execution and opportunities in automating healthcare services.
Gross Margin
83% this quarter, up from 79% in Q3 of last year. The improvement reflects the scalability of the technology-driven care model.
Operating Margin
20%, a significant improvement from negative 4% in Q3 last year. This improvement is driven by investments in automation and AI, which are creating operational leverage.
Free Cash Flow
$81 million this quarter compared to $28 million in Q3 of 2024. This represents a free cash flow margin of 53%, highlighting operational efficiency and a strong business model.
Eligible Lives
Growth in eligible lives contributed to the strong billings performance, reflecting a healthy client base and successful launches of new clients.
Yield
Targeted enrollment initiatives doubled enrollees compared to Q3 2024, contributing to strong engagement and excellent yield performance.
Average Selling Price
Remained essentially flat for the year, with 48% of eligible lives opting for the new engagement-based pricing model.
Operating Expenses
63% of revenue in Q3, down from 83% in the same quarter last year, demonstrating improved operational efficiency.
Income from Operations
$30 million, with a 20% operating margin, a substantial improvement from negative 4% in Q3 2024.
Wall Street analysts forecast HNGE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HNGE is 64.50 USD with a low forecast of 59.00 USD and a high forecast of 72.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
Wall Street analysts forecast HNGE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HNGE is 64.50 USD with a low forecast of 59.00 USD and a high forecast of 72.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Buy
0 Hold
0 Sell
Strong Buy
Current: 41.770
Low
59.00
Averages
64.50
High
72.00
Current: 41.770
Low
59.00
Averages
64.50
High
72.00
Freedom Capital
Gene Mannheimer
initiated
$59
2026-01-22
New
Reason
Freedom Capital
Gene Mannheimer
Price Target
$59
AI Analysis
2026-01-22
New
initiated
Reason
Freedom Capital analyst Gene Mannheimer initiated coverage of Hinge Health with a Buy rating and $59 price target. Hinge is "the market leader" in digital-first musculoskeletal therapy and "just scratching the surface" in a $60B-plus MSK industry, the analyst tells investors. Given the firm's forecast for 23% growth this year and "industry-leading, software-like margins" of 82-83%, it would use current weakness in the shares to own the name, the analyst added.
Piper Sandler
Overweight
downgrade
$71 -> $60
2026-01-09
Reason
Piper Sandler
Price Target
$71 -> $60
2026-01-09
downgrade
Overweight
Reason
Piper Sandler lowered the firm's price target on Hinge Health to $60 from $71 and keeps an Overweight rating on the shares. The firm's revised estimates suggest that Hinge will earn a 24.2% free cash flow margin in 2025 and be within 100 bps of its 25.0% long-term target. Piper believes Hinge has started to harvest some of the embedded earnings power that its Gross Profit multiple sought to reward.
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KeyBanc
Overweight
downgrade
$72 -> $70
2026-01-08
Reason
KeyBanc
Price Target
$72 -> $70
2026-01-08
downgrade
Overweight
Reason
KeyBanc lowered the firm's price target on Hinge Health to $70 from $72 and keeps an Overweight rating on the shares. Coming off a choppy year for HCIT stocks, fundamentally, the firm did see a "year of inflection" for many of its names with estimate revisions plus valuations largely bottoming. While KeyBanc expects momentum to continue for most of its coverage, the firm does see valuation multiples impacted by competition concerns and regulatory impacts.
Wells Fargo
Stan Berenshteyn
Overweight
initiated
$68
2026-01-08
Reason
Wells Fargo
Stan Berenshteyn
Price Target
$68
2026-01-08
initiated
Overweight
Reason
Wells Fargo analyst Stan Berenshteyn initiated coverage of Hinge Health with an Overweight rating and $68 price target. The firm views Hinge as the leader in musculoskeletal with 80% win rates, a "widening moat, and software-like margins." The company has "durable" share gains, expanding adoption, and "untapped growth vectors" supporting long-term growth, the analyst tells investors in a research note.
About HNGE
Hinge Health, Inc. leverages software, including artificial intelligence (AI), to largely automate care for joint and muscle health. The Company has designed its TrueMotion platform to address a spectrum of musculoskeletal (MSK) care from acute injury to chronic pain, to post-surgical rehabilitation. Members receive personalized and automated MSK care through its AI-powered motion tracking technology. It offers electrical nerve stimulation wearable device Enso, all designed and monitored by its AI-supported care team of licensed physical therapists, physicians, and board-certified health coaches. Its platform offers a range of support with multiple programs across many affected areas to provide a continuum of care from prevention to treatment of acute injury and chronic pain, as well as surgery decision support and post-surgical recovery. Enso delivers electrical nerve stimulation designed to provide non-addictive and non-invasive pain relief.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
