Hinge Health, Inc. (HNGE): Results of Operations and Financial Condition
Hinge Health, Inc. (HNGE) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Hinge Health reports record second quarter 2026 financial results; signs definitive agreement to acquire Cylinder Health • Signed a definitive agreement to acquire Cylinder Health, Inc., expanding into gastrointestinal care • Revenue increased 53% year-over-year to $
How this was made
The 30-second read
Why it matters
Q2 performance shows strong growth and margin improvement, while raised guidance and the signed Cylinder Health acquisition provide fresh catalysts for 2026 expectations and 2027 expansion optionality.
Market read
Traders can update models immediately using the raised Q3 and full-year 2026 guidance and the disclosed $105M cash acquisition terms and timing.
What to watch
Deal closing is subject to customary conditions; traders may also focus on integration execution and whether margin expansion sustains after adding a new care vertical.
Hinge Health reports record second quarter 2026 financial results; signs definitive agreement to acquire Cylinder Health
Revenue increased 53% year-over-year to $212.8 million, GAAP income from operations was $40.4 million, free cash flow was $99.6 million, and the company raised full-year 2026 revenue and non-GAAP income from operations guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $212.8 million | – | 53% |
| Gross marginGAAP | 86% | – | – |
| Gross marginnon-GAAP | 87% | – | – |
| Income from operationsGAAP | $40.4 million | – | increased to $40.4 million |
| Income from operationsnon-GAAP | $61.5 million | – | 136% |
| Operating marginGAAP | 19% | – | – |
| Operating marginnon-GAAP | 29% | – | – |
| Diluted net income per shareGAAP | $0.52 | – | – |
| Diluted net income per sharenon-GAAP | $0.59 | – | – |
| Net cash provided by operating activitiesGAAP | $101.4 million | – | increased to $101.4 million |
| Free cash flowother | $99.6 million | – | up 3x year-over-year |
| Cash, cash equivalents, marketable securities and restricted cashother | $475.6 million as of June 30, 2026 | – | – |
| LTM calculated billingsother | $861.8 million as of June 30, 2026 | – | 52% |
| Number of clientsother | 2,929 clients as of June 30, 2026 | – | 24% |
| Cash and cash equivalentsother | $ 286,224 (in thousands) | – | – |
| Short-term marketable securitiesother | 103,167 (in thousands) | – | – |
| Long-term marketable securitiesother | 84,742 (in thousands) | – | – |
Q3 2026 and Full Year 2026 outlook
- RevenueQ3 2026: between $223 million and $225 million, reflecting year-over-year growth of 45% at the midpoint. Full Year 2026: between $856 million and $860 million, reflecting year-over-year growth of 46% at the midpoint.
- NoteQ3 2026 non-GAAP income from operations: between $61 million and $63 million, reflecting year-over-year growth of 104% and non-GAAP operating margin of 28% at the midpoint.
- NoteFull Year 2026 non-GAAP income from operations: between $236 million and $244 million, reflecting year-over-year growth of 101% and non-GAAP operating margin of 28% at the midpoint.
Capital returns
- As of July 29, 2026, Hinge Health had repurchased an aggregate of $196.5 million of its Class A common stock under the program.
- On July 29, 2026, the board approved an increase to the program, resulting in $300.0 million of Class A common stock available for future repurchase.
- The total aggregate amount authorized under the program was $496.5 million as of July 29, 2026.
- The company expects to fund repurchases with existing cash and cash equivalents and ongoing cash from operations.
What drove it
- The company said quarterly outperformance was driven by continued high member conversion.
- Management said its care model delivers a great experience, improves member outcomes and lowers client costs.
- LTM calculated billings increased 52% year-over-year to $861.8 million as of June 30, 2026.
- The number of clients increased 24% year-over-year to 2,929 clients as of June 30, 2026.
- The company cited the strength of its core musculoskeletal care programs and rapid adoption of its Migraine Care Program.
Concerns
- GAAP loss from operations in Q2 2025 included $591.0 million in stock-based compensation expense, affecting comparability with the current period.
- The proposed acquisition of Cylinder Health is subject to customary closing conditions and is expected to close in the third quarter of 2026.
- The company did not reconcile non-GAAP income from operations or non-GAAP operating margin guidance to the corresponding GAAP measures because of uncertainty and potential variability in stock-based compensation expense, employer payroll tax expense related to stock-based compensation, amortization of intangible assets, and adjustments such as acquisition-related expense.
What to watch
- Closing of the Cylinder Health acquisition, which is expected in the third quarter of 2026.
- The planned launch of an integrated Gastrointestinal Care Program in 2027.
- Q3 2026 revenue guidance of between $223 million and $225 million.
- Q3 2026 non-GAAP income from operations guidance of between $61 million and $63 million and non-GAAP operating margin of 28% at the midpoint.
- Execution of the repurchase authorization, with $300.0 million available for future repurchase as of July 29, 2026.
Balance sheet and cash flow
- Net cash provided by operating activities was $101.4 million compared to $20.2 million in Q2 2025.
- Free cash flow was $99.6 million compared to $32.6 million in Q2 2025.
- Cash, cash equivalents, marketable securities and restricted cash were $475.6 million as of June 30, 2026.
- Cash and cash equivalents were $ 286,224 (in thousands) as of June 30, 2026, compared to $ 207,995 (in thousands) as of December 31, 2025.
- Short-term marketable securities were 103,167 (in thousands) as of June 30, 2026, compared to 155,867 (in thousands) as of December 31, 2025.
- Long-term marketable securities were 84,742 (in thousands) as of June 30, 2026, compared to 113,172 (in thousands) as of December 31, 2025.
Analysis
Hinge Health reported a strong second quarter, with revenue increasing 53% year-over-year to $212.8 million and LTM calculated billings increasing 52% year-over-year to $861.8 million. The client base reached 2,929 clients, up 24% year-over-year. Management attributed the quarterly outperformance to continued high member conversion and pointed to its ability to improve member outcomes and lower client costs.
Profitability improved substantially. GAAP gross margin was 86%, compared to 70% in Q2 2025, while non-GAAP gross margin was 87%, compared to 83%. GAAP income from operations was $40.4 million, compared with a GAAP loss from operations of $580.7 million in Q2 2025, when stock-based compensation expense was $591.0 million. Non-GAAP income from operations increased 136% to $61.5 million, and non-GAAP operating margin expanded to 29% from 19%.
Cash generation was also a central feature of the period. Net cash provided by operating activities was $101.4 million compared to $20.2 million in Q2 2025, and free cash flow was $99.6 million compared to $32.6 million. Cash, cash equivalents, marketable securities and restricted cash were $475.6 million as of June 30, 2026. The board increased the repurchase program, leaving $300.0 million available for future repurchase as of July 29, 2026.
The company is expanding beyond its core musculoskeletal care programs through a definitive agreement to acquire Cylinder Health for $105 million in cash consideration. The transaction is expected to close in the third quarter of 2026, subject to customary closing conditions, and the integrated Gastrointestinal Care Program is expected to launch in 2027. Management also cited rapid adoption of the Migraine Care Program.
Outlook was raised for full-year 2026. Hinge Health now expects full-year revenue between $856 million and $860 million and non-GAAP income from operations between $236 million and $244 million, with non-GAAP operating margin of 28% at the midpoint. For Q3 2026, it expects revenue between $223 million and $225 million and non-GAAP income from operations between $61 million and $63 million, with non-GAAP operating margin of 28% at the midpoint. The filing does not provide the prior outlook figures needed to assess the magnitude of the guidance increase versus previous guidance.
Management, verbatim
We delivered another strong quarter ahead of expectations, generating $213 million in revenue with 53% year-over-year growth, while more than tripling free cash flow from a year ago. This quarter’s outperformance was driven by continued high member conversion and reflects our ability to deliver a great experience, improve member outcomes and lower client costs.
Daniel Perez, Co-Founder and CEO, Hinge Health
We also announced the acquisition of Cylinder Health today, marking our entry into gastrointestinal (GI) care. Combined with the strength of our core musculoskeletal care programs and the rapid adoption of our Migraine Care Program, our expansion into GI is another step toward our vision of building a durable, multi-condition platform to automate the delivery of care.
Daniel Perez, Co-Founder and CEO, Hinge Health
Not in the filing
stated, not guessed- Previous release outlook and prior-guidance figures, so a reported-versus-prior-guidance comparison cannot be made.
- Prior-quarter revenue, gross margin, operating income, operating margin, EPS, operating cash flow, free cash flow, billings, and client metrics.
- GAAP net income in dollars.
- Segment revenue and segment profitability disclosures.
- Debt balances.
- GAAP revenue, operating income, operating margin, gross margin, tax rate, and operating expense guidance.
- A reconciliation of non-GAAP income from operations and non-GAAP operating margin guidance to GAAP measures.
- The remainder of the condensed consolidated balance sheet, including total assets, liabilities, and equity, is not included in the supplied filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Hinge Health filed an SEC 8-K with Q2 2026 results and business updates, including a definitive acquisition agreement and updated financial outlook.
Ticker impact
Hinge Health reported Q2 results, raised 2026 revenue guidance, and signed a definitive $105M cash deal to acquire Cylinder Health.
Likely positive bias for the stock as traders price higher 2026 growth and the 2027 GI-care launch optionality, with deal-closing risk as a counterweight.
The filing discloses specific Q2 datapoints (revenue +53% YoY, FCF ~$100M), explicit guidance increases for Q3 and full-year 2026, and a signed acquisition with stated consideration and expected close in Q3 2026.
Market effects
Reinforces demand for virtual-first, AI-enabled care models and may support sentiment toward digital health platforms with multi-condition expansion strategies.
Limited direct regional read-through beyond US digital health investor sentiment.
Primarily US-focused, but could influence global comps for remote-care providers if the GI expansion proves scalable.
Counterpoint
The acquisition is only expected to launch the GI program in 2027, so near-term upside may be more about guidance optics than incremental revenue contribution.
Key entities
- issuerHinge Health, Inc.
Reports Q2 2026 record results, raises 2026 guidance, and announces a definitive acquisition of Cylinder Health.
- acquisition_targetCylinder Health, Inc.
Virtual-first digestive healthcare company to be acquired for $105M cash, expected to close in Q3 2026.
