A month has gone by since the last earnings report for Hinge Health Inc. (HNGE). Shares have added about 13.7% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Hinge Health Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
HNGE Q2 Earnings Meet Estimates, Sales Top, '26 View Raised
Hinge Health Inc. reported second-quarter 2026 adjusted earnings per share (EPS) of 59 cents, in line with the Zacks Consensus Estimate. The bottom line increased 96.7% year over year.
GAAP EPS for the quarter was 52 cents compared to GAAP loss per share of $13.10 in the year-ago quarter.
HNGE's Q2 Revenue and Billings Momentum
Hinge Health registered revenues of $212.8 million in the second quarter, up 53% year over year. The increase was primarily driven by stronger member yield, supported by clinically targeted enrollment campaigns, member referrals and renewals. The figure surpassed the Zacks Consensus Estimate by 6.1%.
LTM calculated billings reached $861.8 million, up from $568.4 million as of June 30, 2025. The company expanded its client base to 2,929 from 2,359 clients in the prior-year period.
HNGE's Margin Trend
In the quarter under review, Hinge Health's adjusted gross profit rose 60.7% year over year to $185.3 million. The adjusted gross margin expanded 400 basis points (bps) to 87%.
Research and development expenses declined 87.8% year over year to $34.1 million, sales and marketing expenses decreased 44.7% to $81.4 million, and general and administrative expenses fell 88.8% to $28 million. The sharp declines reflected significantly lower stock-based compensation expenses compared with the prior-year quarter, which included substantial IPO-related charges.
Total operating expenses of $143.5 million declined 78.8% year over year.
Adjusted operating income totaled $61.5 million, up 135.7% year over year. The adjusted operating margin was 29%, up 1,000 bps from the prior-year quarter's figure.
HNGE's Financial Position
Hinge Health exited second-quarter 2026 with cash and cash equivalents of $286.2 million compared with $186.7 million at the end of first-quarter 2026.
Cumulative net cash provided by operating activities at the end of second-quarter 2026 was $144.5 million compared with $25.2 million a year ago.
HNGE's Guidance for Q3 & 2026
Hinge Health has initiated its financial outlook for the third quarter of 2026 and raised its outlook for the full year.
For the third quarter, the company expects revenues in the range of $223 million-$225 million, reflecting year-over-year growth of 45% at the midpoint. Adjusted operating income is expected to be between $61 million and $63 million, indicating year-over-year growth of 104% and an adjusted operating margin of 28% at the midpoint.
For the full year, HNGE now expects revenues in the range of $856 million-$860 million, up from the prior outlook of $798 million-$804 million. The revised range reflects year-over-year growth of 46% at the midpoint.
The company now expects adjusted operating income to be between $236 million and $244 million, up from the prior outlook of $217 million-$227 million. The updated guidance reflects year-over-year growth of 101% and an adjusted operating margin of 28% at the midpoint, up from 27% previously.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted -23.94% due to these changes.
VGM Scores
At this time, Hinge Health Inc. has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Hinge Health Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Hinge Health Inc. is part of the Zacks Medical Info Systems industry. Over the past month, Tempus AI (TEM), a stock from the same industry, has gained 32.6%. The company reported its results for the quarter ended June 2026 more than a month ago.
Tempus reported revenues of $382.49 million in the last reported quarter, representing a year-over-year change of +21.6%. EPS of -$0.04 for the same period compares with -$0.22 a year ago.
For the current quarter, Tempus is expected to post a loss of $0.07 per share, indicating a change of +36.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Tempus has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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This article originally published on Zacks Investment Research (zacks.com).
