Hinge Health reports record third quarter 2026 financial results
Hinge Health, Inc. (HNGE) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Hinge Health reports record third quarter 2026 financial results • Revenue increased 52% year-over-year to $235 million • Free cash flow of $113 million, representing a 48% free cash flow margin • 2026 revenue guidance midpoint raised to $880 million, reflecting 50%
How this was made
The 30-second read
Why it matters
The raised guidance and record free cash flow indicate accelerating growth, likely prompting buying interest.
Market read
First‑report earnings with raised guidance; high relevance for traders targeting health‑tech equities.
What to watch
Potential headwinds from regulatory scrutiny of digital health data privacy.
Hinge Health reports record third quarter 2026 financial results
Revenue increased 52% year-over-year to $235.0 million, GAAP income from operations reached $50.3 million from a prior-year loss, free cash flow was $112.7 million, and the company raised full-year revenue and non-GAAP income from operations guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 revenueGAAP | $235.0M | – | 52% |
| Nine months ended September 30, 2026 revenueGAAP | $630.1M | – | – |
| Q3 2026 cost of revenueGAAP | 30,640 | – | – |
| Nine months ended September 30, 2026 cost of revenueGAAP | 87,582 | – | – |
| Q3 2026 gross profitGAAP | $204.3M | – | – |
| Q3 2026 gross marginGAAP | 87% | – | – |
| Q3 2026 non-GAAP gross profitnon-GAAP | $206.2M | – | – |
| Q3 2026 non-GAAP gross marginnon-GAAP | 88% | – | – |
| Nine months ended September 30, 2026 gross profitGAAP | $542.5M | – | – |
| Nine months ended September 30, 2026 gross marginGAAP | 86% | – | – |
| Nine months ended September 30, 2026 non-GAAP gross profitnon-GAAP | $546.9M | – | – |
| Nine months ended September 30, 2026 non-GAAP gross marginnon-GAAP | 87% | – | – |
| Q3 2026 research and development expenseGAAP | $37.47M | – | – |
| Q3 2026 sales and marketing expenseGAAP | $85.24M | – | – |
| Q3 2026 general and administrative expenseGAAP | $31.29M | – | – |
| Q3 2026 total operating expensesGAAP | 154,005 | – | – |
| Nine months ended September 30, 2026 total operating expensesGAAP | 419,678 | – | – |
| Q3 2026 income (loss) from operationsGAAP | $50.33M | – | – |
| Q3 2026 operating marginGAAP | 21% | – | – |
| Q3 2026 non-GAAP income from operationsnon-GAAP | $77.21M | – | 154% |
| Q3 2026 non-GAAP operating marginnon-GAAP | 33% | – | – |
| Nine months ended September 30, 2026 income (loss) from operationsGAAP | $122.8M | – | – |
| Nine months ended September 30, 2026 operating marginGAAP | 19% | – | – |
| Nine months ended September 30, 2026 non-GAAP income from operationsnon-GAAP | $184.9M | – | – |
| Nine months ended September 30, 2026 non-GAAP operating marginnon-GAAP | 29% | – | – |
| Q3 2026 net income (loss)GAAP | $57.40M | – | – |
| Nine months ended September 30, 2026 net income (loss)GAAP | $136.2M | – | – |
| Q3 2026 diluted net income (loss) per share attributable to common stockholdersGAAP | $ 0.66 | – | – |
| Q3 2026 non-GAAP diluted net income per sharenon-GAAP | $ 0.71 | – | – |
| Nine months ended September 30, 2026 diluted net income (loss) per share attributable to common stockholdersGAAP | $ 1.58 | – | – |
| Nine months ended September 30, 2026 non-GAAP diluted net income per sharenon-GAAP | $ 1.73 | – | – |
| Q3 2026 net cash provided by operating activitiesGAAP | 114,602 | – | – |
| Q3 2026 operating cash flow marginGAAP | 49% | – | – |
| Q3 2026 free cash flownon-GAAP | $112.7M | – | – |
| Q3 2026 free cash flow marginnon-GAAP | 48% | – | – |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | 259,098 | – | – |
| Nine months ended September 30, 2026 free cash flownon-GAAP | $253.8M | – | – |
| LTM calculated billings as of September 30, 2026other | $960.3M | – | 54% |
| Number of clients as of September 30, 2026other | 3,270 clients | – | 28% |
| Cash, cash equivalents, marketable securities and restricted cash as of September 30, 2026other | $358.5M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Q4 2026 and Full Year 2026 outlook
- RevenueFull Year 2026: between $879 million and $881 million
- NoteQ4 2026 revenue: between $249 million and $251 million, reflecting year-over-year growth of 46% at the midpoint
- NoteQ4 2026 non-GAAP income from operations: between $81 million and $83 million, reflecting year-over-year growth of 71% and non-GAAP operating margin of 33% at the midpoint, a ~470 bps increase over Q4 2025
- NoteFull Year 2026 revenue: reflecting year-over-year growth of 50% at the midpoint
- NoteFull Year 2026 non-GAAP income from operations: between $266 million and $268 million, reflecting year-over-year growth of 123% and non-GAAP operating margin of 30% at the midpoint, a ~1,000 bps increase over 2025
Capital returns
- Repurchase and retirement of common stock: $(25,893) for the three months ended September 30, 2026
- Repurchase and retirement of common stock: $(157,384) for the nine months ended September 30, 2026
What drove it
- LTM calculated billings increased 54% year-over-year to $960.3 million as of September 30, 2026.
- The number of clients increased 28% year-over-year to 3,270 clients as of September 30, 2026.
- The company stated that its MSK Care Program client base was up almost 30% YoY.
- The company stated that its GI Care Program client base was roughly 40% higher since the August acquisition announcement of Cylinder Health.
- The company stated that its Migraine Care Program client base had nearly doubled since last quarter.
Concerns
- Free cash flow margin was 48% in Q3 2026 compared to 53% in Q3 2025.
- Accounts receivable increased to 148,532 as of September 30, 2026 from 66,061 as of December 31, 2025.
- Deferred commissions increased to 46,599 as of September 30, 2026 from 31,344 as of December 31, 2025.
- The company cannot provide a reconciliation of non-GAAP income from operations and non-GAAP operating margin guidance to corresponding GAAP measures because of uncertainty and potential variability in reconciling items.
- Jim Pursley will step down as President effective January 1, 2027.
What to watch
- Delivery of Q4 2026 revenue guidance of between $249 million and $251 million.
- Delivery of Q4 2026 non-GAAP income from operations guidance of between $81 million and $83 million and 33% non-GAAP operating margin at the midpoint.
- Delivery of full-year 2026 revenue guidance of between $879 million and $881 million.
- Integration, timing, anticipated benefits and synergies associated with the acquisition of Cylinder Health.
- The anticipated launch of the integrated Gastrointestinal Care Program in 2027.
- The transition of commercial leadership to Aaryn Pure as Chief Commercial Officer following January 1, 2027.
Balance sheet and cash flow
- Cash and cash equivalents: $ 211,553 as of September 30, 2026
- Short-term marketable securities: 83,102 as of September 30, 2026
- Long-term marketable securities: 59,542 as of September 30, 2026
- Restricted cash: 4,282 as of September 30, 2026
- Total assets: $ 874,081 as of September 30, 2026
- Total liabilities: 574,663 as of September 30, 2026
- Total stockholders’ equity: 299,418 as of September 30, 2026
- Net cash provided by operating activities: 114,602 for the three months ended September 30, 2026
- Net cash used in investing activities: (64,176) for the three months ended September 30, 2026
- Net cash used in financing activities: (122,256) for the three months ended September 30, 2026
- Acquisition of a business, net of cash acquired: (97,353) for the three months ended September 30, 2026
Analysis
Hinge Health reported Q3 2026 revenue of $235.0 million, up 52% year-over-year from $154.2 million. LTM calculated billings increased 54% to $960.3 million and clients increased 28% to 3,270, providing the reported demand indicators behind the revenue result. Management also described a record sales season, with MSK Care Program clients up almost 30% YoY, GI Care Program clients roughly 40% higher since the Cylinder Health acquisition announcement, and Migraine Care Program clients nearly doubled since last quarter.
Profitability improved substantially. GAAP gross margin was 87%, compared with 82% in Q3 2025, while non-GAAP gross margin was 88%, compared with 83%. GAAP income from operations was $50.3 million, compared with a GAAP loss from operations of $6.1 million, and non-GAAP income from operations increased 154% to $77.2 million. GAAP operating margin was 21% versus (4)%, while non-GAAP operating margin was 33% versus 20%.
The company generated $114.6 million of operating cash flow and $112.7 million of free cash flow in Q3. Free cash flow margin was 48%, below the 53% reported in Q3 2025. Cash, cash equivalents, marketable securities and restricted cash were $358.5 million as of September 30, 2026. During the quarter, cash flow reflected $(97,353) for the acquisition of a business, net of cash acquired, $(25,893) for repurchase and retirement of common stock, and $(96,565) of tax withholdings on settlement of restricted stock units and performance-based restricted stock units.
The company raised full-year 2026 guidance to revenue of between $879 million and $881 million, reflecting 50% growth at the midpoint, and non-GAAP income from operations of between $266 million and $268 million, reflecting 123% growth and a 30% non-GAAP operating margin at the midpoint. Q4 guidance calls for revenue of between $249 million and $251 million and non-GAAP income from operations of between $81 million and $83 million, with a 33% non-GAAP operating margin at the midpoint. The guide frames sustained growth and margin expansion, while the company notes that GAAP operating guidance cannot be reconciled without unreasonable efforts due to uncertain stock-based compensation, payroll-tax, amortization and acquisition-related items.
Investors should focus on Q4 execution against the raised full-year outlook, client and billings growth, cash conversion, and the integration of Cylinder Health. The period also includes a leadership transition: Jim Pursley will step down as President effective January 1, 2027, join the Board effective January 4, 2027, and Aaryn Pure will lead the commercial organization as Chief Commercial Officer.
Management, verbatim
Our strong performance continues to reflect our ability to deliver exceptional clinical outcomes, a better healthcare experience and lower client costs at scale.
Daniel Perez, Co-Founder and CEO, Hinge Health
This focus on the triple aim, via a technology platform that scales and automates care delivery, is also resulting in a record sales season.
Daniel Perez, Co-Founder and CEO, Hinge Health
We wouldn't be the company we are today if not for Jim.
Daniel Perez, Co-Founder and CEO, Hinge Health
Not in the filing
stated, not guessed- Prior-quarter revenue, margin, earnings, cash flow and client metrics were not reported.
- Reportable operating segments and segment revenue were not reported.
- Debt balances were not reported.
- Dividend activity was not reported.
- A previous-quarter outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- GAAP income from operations and GAAP operating margin guidance were not provided.
- Q4 2026 and full-year 2026 gross-margin, operating-expense and tax-rate guidance were not provided.
AlphAI 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 8‑K reporting Q3 2026 results and updated guidance.
Ticker impact
Hinge Health raised its 2026 revenue guidance to $880 million, reflecting 50% YoY growth.
upward pressure as investors price in higher revenue outlook
The company reported record Q3 results and increased guidance, a material new fact that can move the share price.
Market effects
Strong growth in digital health may lift peer valuations in the health‑tech sector.
Positive for U.S. biotech and health‑tech stocks.
Limited to health‑tech niche, no broad macro effect.
Counterpoint
If guidance is overly optimistic, the stock could face a pull‑back on earnings miss.
Key entities
- companyHinge Health, Inc.
Digital health platform delivering musculoskeletal, GI, and migraine care.
