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 $213 million
-
Free cash flow of $100 million, up 3x year-over-year
-
2026 revenue guidance midpoint raised to $858 million, reflecting 46% year-over-year growth
-
Board approved a $300 million increase to the share repurchase program
SAN FRANCISCO, August 04, 2026--( BUSINESS WIRE )--Hinge Health, Inc. (NYSE: HNGE) today announced financial results for the second quarter ended June 30, 2026 and provided a business update.
"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," said 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. Building on this momentum, we're raising our revenue and profitability expectations for the remainder of 2026, and are confident in our trajectory for 2027."
Second Quarter Financial Highlights:
-
Revenueincreased 53% year-over-year to $212.8 million compared to revenue of $139.1 million in Q2 2025.
-
GAAP gross marginwas 86% compared to 70% in Q2 2025. Non-GAAP gross marginwas 87% compared to 83% in Q2 2025.
-
GAAP income from operationsincreased to $40.4 million compared to GAAP loss from operations of $580.7 million in Q2 2025, which included $591.0 million in stock-based compensation expense. Non-GAAP income from operationsincreased 136% to $61.5 million compared to $26.1 million in Q2 2025.
-
GAAP operating marginwas 19% compared to (417)% in Q2 2025. Non-GAAP operating marginwas 29% compared to 19% in Q2 2025.
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GAAP diluted net income per sharewas $0.52 compared to a GAAP diluted net loss per share of $13.10 in Q2 2025. Non-GAAP diluted net income per sharewas $0.59 compared to $0.30 in Q2 2025.
-
Net cash provided by operating activitiesincreased to $101.4 million compared to $20.2 million in Q2 2025. Free cash flowincreased to $99.6 million compared to $32.6 million in Q2 2025.
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Cash, cash equivalents, marketable securities and restricted cashwere $475.6 million as of June 30, 2026.
Company Highlights and Key Metrics:
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LTM calculated billingsincreased 52% year-over-year to $861.8 million as of June 30, 2026, compared to $568.4 million as of June 30, 2025.
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Number of clientsincreased 24% year-over-year to 2,929 clients as of June 30, 2026, compared to 2,359 clients as of June 30, 2025.
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Signed a definitive agreement to acquire Cylinder Health, Inc.,a leader in virtual-first digestive healthcare, for $105 million in cash consideration. The acquisition will combine Cylinder Health's clinical expertise and existing market footprint with Hinge Health's AI-powered care model and technology platform to deliver support in a single app with an integrated Gastrointestinal Care Program, expected to launch in 2027. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2026.
Financial Outlook:
We are providing the following guidance for our third quarter 2026 and full year 2026:
-
Q3 2026:We expect revenue to be between $223 million and $225 million, reflecting year-over-year growth of 45% at the midpoint. We expect non-GAAP income from operations to be between $61 million and $63 million, reflecting year-over-year growth of 104% and non-GAAP operating margin of 28% at the midpoint.
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Full Year 2026:We are raising our revenue guidance to be between $856 million and $860 million, reflecting year-over-year growth of 46% at the midpoint. We are raising our non-GAAP income from operations guidance to be between $236 million and $244 million, reflecting year-over-year growth of 101% and non-GAAP operating margin of 28% at the midpoint.
Share Repurchase Program
On November 10, 2025, our board of directors approved a share repurchase program with authorization to purchase up to $250 million of our Class A common stock. As of July 29, 2026, we had repurchased an aggregate of $196.5 million of our Class A common stock under the program. On July 29, 2026, our board of directors approved an increase to the program, resulting in $300.0 million of our Class A common stock available for future repurchase, for a total aggregate amount authorized under the program of $496.5 million as of such date.
Repurchases under the program may be made in the open market, in privately negotiated transactions or by other methods, with the amount, manner, price, and timing of repurchases to be determined at our discretion, depending on a variety of factors, including business, economic and market conditions, prevailing stock prices, corporate and regulatory requirements, and other considerations. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. We may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of our shares under this authorization. This program does not obligate us to repurchase any particular dollar amount or number of shares of Class A common stock, has no expiration date, and may be modified, suspended or terminated at any time at the discretion of our board of directors. We expect to fund repurchases with existing cash and cash equivalents and ongoing cash from operations.
Statement Regarding Use of Non-GAAP Financial Measures
This press release uses non-GAAP financial measures, which are not calculated in accordance with generally accepted accounting principles of the United States (GAAP). For more information about these non-GAAP financial measures, including the limitations of such measures, and for a reconciliation of each measure to the most directly comparable measure calculated in accordance with GAAP, please see the "Non-GAAP Financial Measures" section below.
Moreover, we have not reconciled our non-GAAP income from operations and non-GAAP operating margin guidance to GAAP income from operations and GAAP operating margin because we do not and are not able to provide guidance for GAAP income from operations due to the uncertainty and potential variability of stock-based compensation expense, employer payroll tax expense related to stock-based compensation, amortization of intangible assets and adjustments, such as acquisition-related expense, which are reconciling items between non-GAAP and GAAP income from operations and operating margin. Because such items cannot be provided without unreasonable efforts, we are unable to provide a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures. However, such items could have a significant impact on our future GAAP income from operations.
Hinge Health Earnings Webcast
We will host a conference call and webcast for investors on August 4, 2026 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss our financial results, business highlights and financial outlook. The live webcast of the conference call can be accessed by registering online at ir.hingehealth.com/events-presentations . Following completion of the event, a webcast replay will also be available at ir.hingehealth.com for 12 months.
About Hinge Health
Hinge Health is focused on scaling and automating the delivery of health care. Leveraging an AI-powered care model, connected hardware and access to expert clinicians, Hinge Health delivers personalized, evidence-based care that improves member outcomes and experiences while reducing costs for clients. The company is headquartered in San Francisco, California.
Available Information
Our investors and others should note that we announce material information to the public about our company, products and services, and other matters related to our company through a variety of means, including filings with the U.S. Securities and Exchange Commission ("SEC"), the investor relations page on our website ( ir.hingehealth.com ), press releases, public conference calls, and webcasts in order to achieve broad, non-exclusionary distribution of information to the public and to comply with our obligations under Regulation FD.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release may be forward-looking statements. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," or "will," or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding our proposed acquisition of Cylinder Health and the timing and anticipated benefits and synergies associated with the acquisition, statements regarding our expectations regarding our financial position and operating performance, including our outlook and guidance for the third quarter of 2026 and guidance for full year 2026 and our assumptions underlying such guidance; expectations regarding our share repurchase program; our ability to drive future growth and execute on our goals and strategies; and our expectations regarding our product innovation. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including those more fully described in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 3, 2026 and in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, when filed with the SEC. The forward-looking statements in this press release are based on information available to us as of the date hereof, and we disclaim any obligations to update any forward-looking statements, except as required by law.
HINGE HEALTH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands, except par value data)
June 30, 2026
December 31, 2025
Assets
Current assets:
Cash and cash equivalents
$
286,224
$
207,995
Short-term marketable securities
103,167
155,867
Accounts receivable, net of allowance for credit losses of $6,706 and $6,092 as of June 30, 2026 and December 31, 2025, respectively
125,432
66,061
Deferred commissions
43,440
31,344
Inventory
16,769
15,636
Prepaid expenses and other current assets
68,321
57,001
Total current assets
643,353
533,904
Long-term marketable securities
84,742
113,172
Goodwill
64,096
64,096
Intangible assets, net
2,063
2,512
Property, equipment and software, net
12,745
10,490
Operating lease right-of-use assets
5,027
6,861
Other assets
15,372
13,726
Total assets
$
827,398
$
744,761
Liabilities, redeemable convertible preferred stock and stockholders' equity
Current liabilities:
Accounts payable and accrued liabilities
$
60,719
$
57,331
Operating lease liabilities
4,254
4,223
Deferred revenue
416,466
300,855
Total current liabilities
481,439
362,409
Operating lease liabilities, noncurrent
1,631
3,816
Total liabilities
483,070
366,225
Redeemable convertible preferred stock:
Redeemable convertible preferred stock; $0.00001 par value
—
199,874
Stockholders' equity:
Class A common stock, $0.00001 par value
—
—
Class B common stock, $0.00001 par value
—
—
Additional paid-in capital
1,316,870
1,229,678
Accumulated other comprehensive loss
(364
)
(20
)
Accumulated deficit
(972,178
)
(1,050,996
)
Total stockholders' equity
344,328
178,662
Total liabilities, redeemable convertible preferred stock and stockholders' equity
$
827,398
$
744,761
HINGE HEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Revenue
$
212,817
$
139,098
$
395,124
$
262,923
Cost of revenue
28,868
41,335
56,942
64,927
Gross profit
183,949
97,763
338,182
197,996
Operating expenses:
Research and development
34,057
279,962
64,395
303,462
Sales and marketing
81,408
147,228
150,210
193,944
General and administrative
28,044
251,244
51,068
268,125
Total operating expenses
143,509
678,434
265,673
765,531
Income (loss) from operations
40,440
(580,671
)
72,509
(567,535
)
Other income:
Other income, net
3,990
4,694
7,863
9,695
Net income (loss) before income taxes
44,430
(575,977
)
80,372
(557,840
)
Provision for (benefit from) income taxes
740
(326
)
1,554
672
Net income (loss)
$
43,690
$
(575,651
)
$
78,818
$
(558,512
)
Adjustment to reflect deemed contribution from Series D and Series E redeemable convertible preferred stock extinguishment
—
—
—
104,174
Income allocated to participating securities
(588
)
—
(1,784
)
—
Net income (loss) attributable to common stockholders, basic
$
43,102
$
(575,651
)
$
77,034
$
(454,338
)
Net income (loss) attributable to common stockholders, diluted
$
43,133
$
(575,651
)
$
77,109
$
(454,338
)
Net income (loss) attributable to common stockholders per share:
Basic
$
0.55
$
(13.10
)
$
0.98
$
(15.05
)
Diluted
$
0.52
$
(13.10
)
$
0.94
$
(15.05
)
Weighted average shares used in computing net income (loss) per share attributable to common stockholders:
Basic
78,969
43,931
78,795
30,190
Diluted
83,424
43,931
82,344
30,190
HINGE HEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Operating activities:
Net income (loss)
$
43,690
$
(575,651
)
$
78,818
$
(558,512
)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization
1,061
1,343
2,234
2,646
Stock-based compensation
19,092
590,983
30,784
590,990
Amortization of deferred commissions
19,085
10,680
35,290
19,870
Accretion of discounts and amortization of premiums on marketable securities, net
569
277
704
326
Non-cash operating lease expense
929
843
1,834
1,688
Provision for credit losses
1,613
1,894
1,613
2,780
Deferred income taxes
13
90
13
96
Other
(1
)
2
(1
)
(2
)
Changes in operating assets and liabilities:
Accounts receivable
(12,124
)
(25,304
)
(60,984
)
(59,584
)
Deferred commissions
(28,476
)
(17,020
)
(49,079
)
(27,650
)
Inventory
(2,602
)
(1,202
)
(1,132
)
(3,114
)
Prepaid expenses and other current assets
(7,730
)
(14,743
)
(11,320
)
(6,609
)
Other assets
331
(211
)
(327
)
(485
)
Accounts payable and accrued liabilities
(8,654
)
(8,713
)
2,592
6,997
Operating lease liabilities
(1,084
)
(851
)
(2,154
)
(1,792
)
Deferred revenue
75,701
57,810
115,611
57,505
Net cash provided by operating activities
101,413
20,227
144,496
25,150
Investing activities:
Purchase of property and equipment
(123
)
(197
)
(206
)
(248
)
Capitalized internal use software
(1,731
)
(1,630
)
(3,178
)
(2,336
)
Purchases of marketable securities
(30,921
)
(85,110
)
(89,877
)
(175,282
)
Maturities of marketable securities
61,393
90,958
169,960
164,556
Acquisition of a business
—
—
—
(4,000
)
Net cash provided by (used in) investing activities
28,618
4,021
76,699
(17,310
)
Financing activities:
Proceeds from exercise of common stock options
270
159
680
256
Issuance of common stock in connection with the employee stock purchase plan
7,276
—
7,276
—
Proceeds from issuance of common stock in initial public offering, net of issuance costs
—
255,675
—
255,675
Repurchase and retirement of common stock
(26,525
)
—
(131,491
)
—
Tax withholdings on settlement of restricted stock units and performance-based restricted stock units
(11,499
)
(272,258
)
(19,791
)
(272,258
)
Payment on Repurchase Agreement with Coatue
—
(50,000
)
—
(50,000
)
Proceeds from repayment of non-recourse loans to employees
—
—
—
4,934
Payments for deferred offering costs
—
(9,134
)
—
(10,061
)
Net cash used in financing activities
(30,478
)
(75,558
)
(143,326
)
(71,454
)
Net increase (decrease) in cash, cash equivalents and restricted cash
99,553
(51,310
)
77,869
(63,614
)
Cash, cash equivalents, and restricted cash, beginning of period
188,112
290,282
209,796
302,586
Cash, cash equivalents, and restricted cash, end of period
$
287,665
$
238,972
$
287,665
$
238,972
Reconciliation of cash, cash equivalents, and restricted cash to the unaudited condensed consolidated balance sheets:
Cash and cash equivalents
$
286,224
$
237,170
...
