Free cash flow margin reached 23.6% in 2026Q1, though a $22.2 million working capital outflow highlights persistent friction in managing enterprise-level receivables.
| Cash from Operations | 209.6M | 171.44M | 49M | -63.91M |
| Operating CF Margin % | - | 29.16% | 12.55% | -21.83% |
| Operating CF Growth % | 841.44% | 249.87% | 176.67% | - |
| Net Income | -510.27M | -528.26M | -11.93M | -108.14M |
| Depreciation & Amortization | 3.86M | 5.49M | 5.95M | 5.63M |
| Stock-Based Compensation | 619.85M | 643.01M | 739K | 1.65M |
| Deferred Taxes | -3K | 53K | -585K | -473K |
| Other Non-Cash Items | 95.84M | 53.16M | 41.33M | 28.02M |
| Working Capital Changes | 329K | -2.01M | 13.5M | 9.41M |
| Change in Receivables | -41.21M | -26.63M | -1.34M | -23.13M |
| Change in Inventory | -1.38M | -4.76M | 608K | 10.56M |
| Change in Payables | 24.94M | 29.41M | -10.97M | 0 |
| Cash from Investing | -44.35M | -113.76M | 18.31M | 1.5M |
| Capital Expenditures | -3.44M | -708K | -1.04M | -1.98M |
| CapEx % of Revenue | 0.53% | 0.12% | 0.27% | 0.68% |
| Acquisitions | 0 | -4M | 0 | 0 |
| Investments | - | - | - | - |
| Other Investing | -3.4M | -5.36M | -2.73M | -2.64M |
| Cash from Financing | -267.42M | -150.47M | -2.2M | -3M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 95.52M | 200.18M | 610K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Share Repurchases | -169.99M | -65.03M | 0 | 0 |
| Other Financing | -362.94M | -350.64M | -2.81M | -3M |
| Net Change in Cash | -102.17M | -92.79M | 65.11M | -65.41M |
| Free Cash Flow | 206.17M | 170.73M | 45.23M | -68.52M |
| FCF Margin % | 31.9% | 29.04% | 11.59% | -23.41% |
| FCF Growth % | - | 277.49% | 166% | - |
| FCF per Share | 2.50 | 2.09 | 0.58 | -0.88 |
| FCF Conversion (FCF/Net Income) | -0.40x | -0.32x | -4.11x | 0.59x |
| Interest Paid | 0 | 0 | 0 | 0 |
| Taxes Paid | 1.01M | 0 | 0 | 0 |
Performance-based revenue volatility
According to recent financial statements, Hinge Health's operating cash flow to net income ratio reached 1.23 in 2026Q1, indicating that the company is successfully converting its reported accounting profits into tangible cash inflows, a marked improvement from the erratic conversion metrics observed in previous fiscal periods.
The alignment between net income and operating cash flow suggests that the company's recent profitability is not merely an accounting artifact but is supported by actual cash generation. Investors should monitor whether this conversion efficiency persists as the company scales, as any future divergence could signal aggressive revenue recognition practices.
As reported in the latest quarterly filings, Hinge Health achieved a free cash flow margin of 23.6% in 2026Q1, demonstrating a significant trajectory shift from the negative cash flow territory seen in early 2024, which suggests the business model is finally reaching a sustainable scale.
The transition to positive free cash flow indicates that the company's core operations are now self-funding, reducing the immediate necessity for external capital injections. This trend appears to be driven by the maturation of enterprise contracts and a more disciplined approach to managing the high fixed-cost base.
Based on the provided cash flow data, Hinge Health experienced a $22.2 million working capital outflow in 2026Q1, which highlights the inherent friction in managing enterprise-level receivables and the potential impact of seasonal billing cycles on the company's short-term liquidity position.
The recurring negative working capital changes suggest that the company's growth is currently consuming cash to support the expansion of its client base. Analysts should investigate whether these outflows are temporary timing differences or a structural requirement of the company's long-term service contract payment terms.
Financial records indicate that Hinge Health utilized $105.0 million for share repurchases in 2026Q1, a move that appears aggressive given the company's historical burn rate and suggests management's confidence in the firm's long-term valuation despite the ongoing need for R&D investment.
This capital deployment strategy warrants further investigation, as prioritizing share buybacks over debt reduction or further product innovation may limit the company's financial flexibility. It remains unclear if this allocation is sustainable or if it reflects a temporary effort to manage equity dilution for existing shareholders.
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.