Hinge Health Q3 Revenue Jumps 52% as Operating Margin Expands

Hinge Health Inc. (NYSE: HNGE) reported a 52% year-over-year increase in third-quarter 2026 revenue and wider operating margins, while issuing revised full-year guidance that calls for revenue of $879 million to $881 million. The digital health company also pointed to client growth, large-enterprise wins and broader adoption of its multi-product platform as it heads toward another expected record sales season.

Revenue for the three months ended September 30 rose to $235 million from $154 million a year earlier. Last-12-month calculated billings increased 54% to $960 million from $624 million, indicating continued expansion in contracted business and deferred revenue activity.

GAAP gross profit reached $204 million, representing an 87% gross margin, compared with 82% in the prior-year quarter. On a non-GAAP basis, gross profit was $206 million and gross margin expanded to 88% from 83%.

GAAP operating income was $50 million, or 21% of revenue, compared with a GAAP operating loss of $6 million and a negative 4% margin a year earlier. Non-GAAP operating income increased 154% to $77 million from $30 million, lifting the corresponding margin to 33% from 20%.

The margin gains reflected operating leverage across major expense categories. Non-GAAP sales and marketing costs declined to 33% of revenue from 37% a year earlier, while research and development fell to 12% from 14% and general and administrative expenses decreased to 10% from 11%.

GAAP net income attributable to common stockholders was $57 million, compared with a $2 million loss in the prior-year period. Non-GAAP net income attributable to common stockholders was $61 million, or $0.71 per diluted share, up from $27 million, or $0.32 per diluted share.

Cash Generation and Commercial Expansion

Hinge Health generated $113 million of free cash flow under its stated non-GAAP definition, equal to 48% of revenue. Excluding $7 million of one-time acquisition-related payments, free cash flow was $120 million and the margin was 51%, compared with $81 million and 53% a year earlier. Net cash provided by operating activities totaled $115 million.

The company ended the quarter with 3,270 contracted clients, an increase of 28% year over year. During the period, it added three Fortune 15 clients and secured one full-population expansion. Hinge Health also said its investments in the small and medium-sized business market had contributed to approximately 1 million lives closed during the first nine months of 2026.

More than 10 million lives now have access to multiple Hinge Health products. The company said early surgeon feedback on HingeSelect has been encouraging, citing pre-qualified members, integrated pre- and post-surgical care and geography-specific contracting as areas of interest.

Product Development

Hinge Health said members who use its Movement Analysis feature complete more computer-vision-based exercises overall. Early results from its Migraine Care Program showed a 23% reduction in monthly migraine days and a 28% reduction in migraine duration.

The company is also developing a fully integrated Gastrointestinal Care Program targeted for summer 2027. The planned offering combines food analysis, symptom tracking through its Robin tool, an AI-powered Stool Scan and access to gastrointestinal specialists, dietitians and gut-brain therapists to inform customized care plans.

Outlook

For the fourth quarter, Hinge Health expects revenue of $249 million to $251 million, representing approximately 46% year-over-year growth. Non-GAAP operating income is projected at $81 million to $83 million, with a 33% margin at the midpoint.

Under its revised 2026 outlook, the company forecasts revenue of $879 million to $881 million, or about 50% growth. It expects full-year non-GAAP operating income of $266 million to $268 million, implying a 30% margin at the midpoint.

Hinge Health did not provide a reconciliation of its non-GAAP operating-income guidance to GAAP results. The company said it cannot reasonably forecast potentially variable items including stock-based compensation, related payroll taxes, intangible-asset amortization, restructuring charges, inventory transition costs and acquisition-related expenses. Those items could have a significant effect on future GAAP operating results.

The outlook and product targets are forward-looking and remain subject to risks involving demand, execution of the company’s go-to-market model, partner integrations, referral pathways, market expansion and the use of artificial intelligence and machine learning in its platform.