Hinge Health's Optimistic Outlook Amid Rapid Growth in Digital Health Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy HNGE?
Source: Fool
- Significant Revenue Growth: Hinge Health's revenue surged by 51% in 2025 to $587.9 million, reflecting strong performance in the digital musculoskeletal health sector, with projections for 2026 revenue between $732 million and $742 million, marking a 25% increase.
- Expanding Client Base: In the fourth quarter, the number of corporate clients grew by 25% year-over-year to 2,830, while the eligible individual users increased by 25% to 25 million, indicating a rising market penetration.
- Innovative Technology Deployment: Hinge Health introduced the AI care assistant Robin and movement analysis features aimed at automating physical therapy sessions to reduce employer costs while keeping care team expenses flat, thereby enhancing customer service capabilities.
- Strong Cash Flow Growth: Although not yet consistently profitable, the company reported a 65% year-over-year increase in free cash flow to $61.5 million, demonstrating its profitability potential, and has approved a $250 million stock buyback program to enhance shareholder value.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy HNGE?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on HNGE
Wall Street analysts forecast HNGE stock price to rise
14 Analyst Rating
14 Buy
0 Hold
0 Sell
Strong Buy
Current: 40.560
Low
59.00
Averages
64.50
High
72.00
Current: 40.560
Low
59.00
Averages
64.50
High
72.00
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.
Hinge Health Leverages AI to Reduce Physical Therapy Costs
- Significant Revenue Growth: Hinge Health's revenue surged by 51% in 2025 to $587.9 million, demonstrating strong performance in the digital musculoskeletal health sector, even as its stock has only risen 7% since its IPO.
- Client Base Expansion: In Q4, Hinge Health expanded its corporate client base by 25% year-over-year to 2,830, while the number of individuals eligible for its services also grew by 25% to 25 million, indicating sustained market demand.
- New Feature Launches: The company introduced AI care assistant Robin and movement analysis features on its platform, aimed at enhancing customer service efficiency through automated physical therapy processes, thereby reducing care team costs and improving customer satisfaction.
- Strong Cash Flow Growth: Hinge Health's free cash flow increased by 65% year-over-year to $61.5 million; although it has not yet achieved consistent profitability, its high gross margin (84% in Q4) and stock buyback program indicate significant future growth potential.
See More
Hinge Health's Optimistic Outlook Amid Rapid Growth in Digital Health Market
- Significant Revenue Growth: Hinge Health's revenue surged by 51% in 2025 to $587.9 million, reflecting strong performance in the digital musculoskeletal health sector, with projections for 2026 revenue between $732 million and $742 million, marking a 25% increase.
- Expanding Client Base: In the fourth quarter, the number of corporate clients grew by 25% year-over-year to 2,830, while the eligible individual users increased by 25% to 25 million, indicating a rising market penetration.
- Innovative Technology Deployment: Hinge Health introduced the AI care assistant Robin and movement analysis features aimed at automating physical therapy sessions to reduce employer costs while keeping care team expenses flat, thereby enhancing customer service capabilities.
- Strong Cash Flow Growth: Although not yet consistently profitable, the company reported a 65% year-over-year increase in free cash flow to $61.5 million, demonstrating its profitability potential, and has approved a $250 million stock buyback program to enhance shareholder value.
See More
Whale Rock's Investment Moves: New Stakes and Exits
- New Investments: Whale Rock has taken a new stake in Macom Technology Solutions (MTSI) with 783,000 shares valued at $134.1 million, and also added 1 million shares of Sandisk (SNDK) worth $238.2 million, indicating confidence in the semiconductor sector.
- Increased Alphabet Holdings: The fund increased its stake in Alphabet (GOOGL) from 1.17 million shares to 2.10 million shares, raising its value from $657.6 million to $657.6 million, reflecting optimism about the tech giant's future growth.
- Reduction Strategy: Whale Rock reduced its holdings in Celestica (CLS) from 2.99 million shares to 1.88 million shares, decreasing its value from $556.5 million to $556.5 million, indicating a cautious outlook on the company's future performance.
- Exit from Hinge Health: The fund has completely exited its investment in Hinge Health (HNGE), showing a reserved stance on the company's prospects, while also closing its position in Sea Ltd. (SE), possibly to reallocate its investment portfolio.
See More
Hinge Health Surges 15% After Beating Q4 Earnings Expectations
- Earnings Beat: Hinge Health reported Q4 earnings of $0.49 per share, surpassing analyst expectations of $0.43, with sales reaching $170.7 million, exceeding the forecast of $156.8 million, indicating strong market performance and profitability.
- Significant Sales Growth: Q4 sales surged 46% year-over-year, with gross margins expanding by 200 basis points, demonstrating Hinge's substantial progress in treating musculoskeletal conditions and enhancing its competitive position in the market.
- Strong Cash Flow: Free cash flow increased by 65% to $61.5 million, reflecting the company's conservative approach to capital expenditures, allowing investors to rely on accurate cash flow figures and bolstering investor confidence.
- Optimistic Future Outlook: Hinge forecasts a 39% sales growth in Q1 2026, aiming for approximately $737 million in annual sales, with management projecting non-GAAP earnings growth to exceed sales growth, highlighting the company's potential for continued expansion.
See More
Hinge Health Surpasses Q4 Earnings Expectations, Stock Jumps 15%
- Earnings Beat: Hinge Health reported Q4 earnings of $0.49 per share, exceeding analysts' expectations of $0.43, with sales reaching $170.7 million, surpassing the forecast of $156.8 million, indicating robust performance in the healthcare platform sector.
- Significant Sales Growth: The company experienced a 46% year-over-year sales increase, with gross margins expanding by 200 basis points, demonstrating substantial market expansion and improved profitability in treating musculoskeletal conditions.
- Strong Free Cash Flow: Hinge's free cash flow increased by 65% to $61.5 million, reflecting effective capital expenditure management and enhancing investor confidence in its financial health.
- Optimistic Future Outlook: The company forecasts a 39% sales growth in Q1 2026, aiming for annual sales of approximately $737 million, with management projecting a 29% growth in non-GAAP earnings, indicating sustained growth potential.
See More
Hinge Health Reports Strong Q4 Earnings, Exceeds Expectations
- Strong Performance: Hinge Health reported adjusted earnings per share of 49 cents for Q4, surpassing the expected 39 cents, with sales reaching $170.73 million, a 46% year-over-year increase, highlighting the company's robust position in pain management.
- Margin Improvement: The gross margin rose to 84% from 82% a year ago, while the adjusted gross margin reached 85%, indicating ongoing enhancements in cost management and profitability.
- Client and Member Growth: The number of clients increased by 25% year-over-year to 2,830, and membership grew by 47% to 782,890, reflecting significant market penetration and demand for services.
- Positive Outlook: Hinge Health expects Q1 2026 sales between $171 million and $173 million, exceeding the consensus of $160.28 million, demonstrating strong commercial momentum and sustained profitability.
See More
Hinge Health Leverages AI to Reduce Physical Therapy Costs
- Significant Revenue Growth: Hinge Health's revenue surged by 51% in 2025 to $587.9 million, demonstrating strong performance in the digital musculoskeletal health sector, even as its stock has only risen 7% since its IPO.
- Client Base Expansion: In Q4, Hinge Health expanded its corporate client base by 25% year-over-year to 2,830, while the number of individuals eligible for its services also grew by 25% to 25 million, indicating sustained market demand.
- New Feature Launches: The company introduced AI care assistant Robin and movement analysis features on its platform, aimed at enhancing customer service efficiency through automated physical therapy processes, thereby reducing care team costs and improving customer satisfaction.
- Strong Cash Flow Growth: Hinge Health's free cash flow increased by 65% year-over-year to $61.5 million; although it has not yet achieved consistent profitability, its high gross margin (84% in Q4) and stock buyback program indicate significant future growth potential.
See More
Hinge Health's Optimistic Outlook Amid Rapid Growth in Digital Health Market
- Significant Revenue Growth: Hinge Health's revenue surged by 51% in 2025 to $587.9 million, reflecting strong performance in the digital musculoskeletal health sector, with projections for 2026 revenue between $732 million and $742 million, marking a 25% increase.
- Expanding Client Base: In the fourth quarter, the number of corporate clients grew by 25% year-over-year to 2,830, while the eligible individual users increased by 25% to 25 million, indicating a rising market penetration.
- Innovative Technology Deployment: Hinge Health introduced the AI care assistant Robin and movement analysis features aimed at automating physical therapy sessions to reduce employer costs while keeping care team expenses flat, thereby enhancing customer service capabilities.
- Strong Cash Flow Growth: Although not yet consistently profitable, the company reported a 65% year-over-year increase in free cash flow to $61.5 million, demonstrating its profitability potential, and has approved a $250 million stock buyback program to enhance shareholder value.
See More
Whale Rock's Investment Moves: New Stakes and Exits
- New Investments: Whale Rock has taken a new stake in Macom Technology Solutions (MTSI) with 783,000 shares valued at $134.1 million, and also added 1 million shares of Sandisk (SNDK) worth $238.2 million, indicating confidence in the semiconductor sector.
- Increased Alphabet Holdings: The fund increased its stake in Alphabet (GOOGL) from 1.17 million shares to 2.10 million shares, raising its value from $657.6 million to $657.6 million, reflecting optimism about the tech giant's future growth.
- Reduction Strategy: Whale Rock reduced its holdings in Celestica (CLS) from 2.99 million shares to 1.88 million shares, decreasing its value from $556.5 million to $556.5 million, indicating a cautious outlook on the company's future performance.
- Exit from Hinge Health: The fund has completely exited its investment in Hinge Health (HNGE), showing a reserved stance on the company's prospects, while also closing its position in Sea Ltd. (SE), possibly to reallocate its investment portfolio.
See More
Hinge Health Surges 15% After Beating Q4 Earnings Expectations
- Earnings Beat: Hinge Health reported Q4 earnings of $0.49 per share, surpassing analyst expectations of $0.43, with sales reaching $170.7 million, exceeding the forecast of $156.8 million, indicating strong market performance and profitability.
- Significant Sales Growth: Q4 sales surged 46% year-over-year, with gross margins expanding by 200 basis points, demonstrating Hinge's substantial progress in treating musculoskeletal conditions and enhancing its competitive position in the market.
- Strong Cash Flow: Free cash flow increased by 65% to $61.5 million, reflecting the company's conservative approach to capital expenditures, allowing investors to rely on accurate cash flow figures and bolstering investor confidence.
- Optimistic Future Outlook: Hinge forecasts a 39% sales growth in Q1 2026, aiming for approximately $737 million in annual sales, with management projecting non-GAAP earnings growth to exceed sales growth, highlighting the company's potential for continued expansion.
See More
Hinge Health Surpasses Q4 Earnings Expectations, Stock Jumps 15%
- Earnings Beat: Hinge Health reported Q4 earnings of $0.49 per share, exceeding analysts' expectations of $0.43, with sales reaching $170.7 million, surpassing the forecast of $156.8 million, indicating robust performance in the healthcare platform sector.
- Significant Sales Growth: The company experienced a 46% year-over-year sales increase, with gross margins expanding by 200 basis points, demonstrating substantial market expansion and improved profitability in treating musculoskeletal conditions.
- Strong Free Cash Flow: Hinge's free cash flow increased by 65% to $61.5 million, reflecting effective capital expenditure management and enhancing investor confidence in its financial health.
- Optimistic Future Outlook: The company forecasts a 39% sales growth in Q1 2026, aiming for annual sales of approximately $737 million, with management projecting a 29% growth in non-GAAP earnings, indicating sustained growth potential.
See More
Hinge Health Reports Strong Q4 Earnings, Exceeds Expectations
- Strong Performance: Hinge Health reported adjusted earnings per share of 49 cents for Q4, surpassing the expected 39 cents, with sales reaching $170.73 million, a 46% year-over-year increase, highlighting the company's robust position in pain management.
- Margin Improvement: The gross margin rose to 84% from 82% a year ago, while the adjusted gross margin reached 85%, indicating ongoing enhancements in cost management and profitability.
- Client and Member Growth: The number of clients increased by 25% year-over-year to 2,830, and membership grew by 47% to 782,890, reflecting significant market penetration and demand for services.
- Positive Outlook: Hinge Health expects Q1 2026 sales between $171 million and $173 million, exceeding the consensus of $160.28 million, demonstrating strong commercial momentum and sustained profitability.
See More
