Cash conversion is exceptional, with Q2 2026 operating cash flow of $101.4M at 2.3x net income and FCF margin of 46.8%, while buybacks of $26.5M in Q2 and $105M in Q1 deploy excess capital without compromising liquidity.
Hinge Health, Inc. (HNGE) cash flow statement — 3-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 |
|---|
| Cash from Operations | 290.79M | 171.44M | 49M | -63.91M |
| Operating CF Margin % | - | 29.16% | 12.55% | -21.83% |
| Operating CF Growth % | 1242.86% | 249.87% | 176.67% | - |
| Net Income | 109.07M | -528.26M | -11.93M | -108.14M |
| Depreciation & Amortization | 4.84M | 5.49M | 5.95M | 5.63M |
| Stock-Based Compensation | 82.8M | 643.01M | 739K | 1.65M |
| Deferred Taxes | -30K | 53K | -585K | -473K |
| Other Non-Cash Items | 61.54M | 53.16M | 41.33M | 28.02M |
| Working Capital Changes | 32.56M | -2.01M | 13.5M | 9.41M |
| Change in Receivables | -28.03M | -26.63M | -1.34M | -23.13M |
| Change in Inventory | -2.78M | -4.76M | 608K | 10.56M |
| Change in Payables | 7.01M | 29.41M | -10.97M | 0 |
| Cash from Investing | -19.75M | -113.76M | 18.31M | 1.5M |
| Capital Expenditures | -666K | -708K | -1.04M | -1.98M |
| CapEx % of Revenue | 0.09% | 0.12% | 0.27% | 0.68% |
| Acquisitions | 0 | -4M | 0 | 0 |
| Investments | - | - | - | - |
| Other Investing | -6.2M | -5.36M | -2.73M | -2.64M |
| Cash from Financing | -222.34M | -150.47M | -2.2M | -3M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -179.29M | 200.18M | 610K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Share Repurchases | -196.52M | -65.03M | 0 | 0 |
| Other Financing | -43.05M | -350.64M | -2.81M | -3M |
| Net Change in Cash | 48.7M | -92.79M | 65.11M | -65.41M |
| Free Cash Flow | 287.33M | 170.73M | 45.23M | -68.52M |
| FCF Margin % | 39.9% | 29.04% | 11.59% | -23.41% |
| FCF Growth % | 993.87% | 277.49% | 166% | - |
| FCF per Share | 3.49 | 2.09 | 0.58 | -0.88 |
| FCF Conversion (FCF/Net Income) | 2.63x | -0.32x | -4.11x | 0.59x |
| Interest Paid | 0 | 0 | 0 | 0 |
| Taxes Paid | 1.01M | 0 | 0 | 0 |
Quick answers to the most common questions about buying HNGE stock.
Hinge Health, Inc. (HNGE) generated $171.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hinge Health, Inc. (HNGE) generated $170.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Hinge Health, Inc. (HNGE) spent $0.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Hinge Health, Inc. (HNGE) spent $65.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Platform consolidation by insurers
Metrics are mathematically derived from official filings.
Earnings Quality Strengthens with Cash Conversion
In Q2 2026, HNGE's operating cash flow reached $101.4M, 2.3 times net income of $43.7M, according to the latest quarterly report, indicating high earnings quality.
The OCF/NI ratio of 2.32 in Q2 2026, up from 1.23 in Q1 2026, suggests that reported profits are backed by strong cash generation, likely due to favorable working capital movements and non-cash charges. This marks a significant improvement from the negative ratios in 2025, when net income was distorted by a large SBC charge. Investors should monitor whether this conversion rate is sustainable as growth normalizes.
Free Cash Flow Inflects Sharply Upward
FCF surged to $99.6M in Q2 2026, a 46.8% margin, up from $18.4M a year earlier, as reported in the cash flow statement, signaling a decisive shift toward self-funding.
The FCF margin expanded from 13.2% in Q2 2025 to 46.8% in Q2 2026, reflecting operating leverage and disciplined cost management. This trajectory, combined with the CEO's commentary on tripling FCF year-over-year, suggests the company is transitioning from a cash-burning growth phase to a cash-generative model. However, the sustainability of this margin depends on maintaining revenue growth and controlling customer acquisition costs.
Minimal Capital Intensity Masks Asset-Light Model
CapEx remained negligible at $123K in Q2 2026, just 0.1% of revenue, according to the cash flow statement, underscoring the asset-light nature of HNGE's digital platform.
The extremely low capital intensity indicates that the business does not require significant physical asset investment to scale, which is typical for software-based healthcare services. This allows nearly all operating cash flow to convert to FCF, but investors should note that the company may need to invest in technology and clinical staff to sustain growth, which could increase future capex.
Working Capital Swings Drive Cash Flow Volatility
Working capital changes swung from -$22.2M in Q1 2026 to +$22.0M in Q2 2026, as per the cash flow statement, indicating timing effects that can distort quarterly cash flow.
The positive working capital contribution in Q2 2026 was a key driver of the strong OCF, likely reflecting improved collections or deferred revenue. However, the negative contribution in Q1 suggests that cash flow can be lumpy, and investors should focus on the trailing twelve-month trend rather than any single quarter. The company's ability to manage receivables and payables will be critical as it scales.
Buybacks Accelerate as Cash Pile Grows
HNGE repurchased $26.5M of stock in Q2 2026, following $105M in Q1, according to the cash flow statement, deploying excess cash while maintaining zero dividends.
The aggressive buyback program, totaling over $130M in the first half of 2026, suggests management believes the stock is undervalued and is returning capital to shareholders. This deployment is supported by strong FCF generation, but it also reduces the cash buffer, which stood at ~$208M. Investors should assess whether buybacks are the optimal use of capital versus reinvesting in growth or building reserves for potential market downturns.
Cumulative Cash Generation Outpaces Reported Earnings
Over the past eight quarters, cumulative operating cash flow of $321.5M exceeds cumulative net income of -$344.7M, as per the cash flow data, highlighting the impact of non-cash charges.
The large divergence is primarily due to a $591M SBC charge in Q2 2025, which depressed net income but did not affect cash flow. Excluding that quarter, the relationship between OCF and net income is more aligned, but the cumulative gap underscores the importance of focusing on cash-based metrics. This suggests that the company's economic profitability is better than GAAP earnings imply, but investors should adjust for SBC dilution.
What the Cash Flow Statement Obscures
Despite strong reported cash flows, HNGE's cash flow statement may obscure the true cost of growth, as SBC of $19.1M in Q2 2026 and potential capitalized costs are not fully transparent, according to the financial data.
The cash flow statement shows robust OCF, but it does not fully reflect the dilutive impact of stock-based compensation, which totaled $19.1M in Q2 2026 alone. Additionally, the company may be capitalizing certain costs, such as hardware or implementation expenses, which could inflate reported margins. Investors should adjust for these items to assess the true cash-generative capacity of the business.