The company achieved a robust 84.6% gross margin in 2026Q1, reflecting successful scalability of its digital therapy platform despite $11.7 million in stock-based compensation expenses.
| Sales/Revenue | 646.34M | 587.86M | 390.4M | 292.73M |
| Revenue Growth % | - | 50.58% | 33.37% | - |
| Cost of Goods Sold | 124.12M | 119.64M | 89.81M | 98.55M |
| COGS % of Revenue | - | 20.35% | 23% | 33.67% |
| Gross Profit | 522.22M | 468.22M | 300.59M | 194.18M |
| Gross Margin % | 80.8% | 79.65% | 77% | 66.33% |
| Gross Profit Growth % | - | 55.77% | 54.8% | - |
| Operating Expenses | 1.05B | 1.01B | 325.02M | 324.69M |
| OpEx % of Revenue | - | 172.59% | 83.25% | 110.92% |
| Selling, General & Admin | 674.68M | 646.46M | 227.53M | 214.63M |
| SG&A % of Revenue | - | 109.97% | 58.28% | 73.32% |
| Research & Development | 374.98M | 368.14M | 97.49M | 110.06M |
| R&D % of Revenue | - | 62.62% | 24.97% | 37.6% |
| Other Operating Expenses | 0 | 0 | 0 | 0 |
| Operating Income | -527.44M | -546.37M | -24.43M | -130.51M |
| Operating Margin % | -81.6% | -92.94% | -6.26% | -44.59% |
| Operating Income Growth % | - | -2136.57% | 81.28% | - |
| EBITDA | -523.61M | -541.24M | -18.48M | -124.89M |
| EBITDA Margin % | -81.01% | -92.07% | -4.73% | -42.66% |
| EBITDA Growth % | - | -2828.94% | 85.2% | - |
| D&A (Non-Cash Add-back) | 3.83M | 5.13M | 5.95M | 5.63M |
| EBIT | -522.98M | -546.37M | -11.26M | -108.55M |
| Net Interest Income | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 |
| Other Income/Expense | 17.98M | 19.11M | 13.17M | 21.97M |
| Pretax Income | -509.46M | -527.26M | -11.26M | -108.55M |
| Pretax Margin % | -78.82% | -89.69% | -2.88% | -37.08% |
| Income Tax | 816K | 998K | 677K | -405K |
| Effective Tax Rate % | -0.16% | -0.19% | -6.01% | 0.37% |
| Net Income | -510.27M | -528.26M | -11.93M | -108.14M |
| Net Margin % | -78.95% | -89.86% | -3.06% | -36.94% |
| Net Income Growth % | - | -4326.89% | 88.97% | - |
| Net Income (Continuing) | -510.27M | -528.26M | -11.93M | -108.14M |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -6.19 | -5.19 | -0.15 | -1.39 |
| EPS Growth % | - | -3360% | 89.21% | - |
| EPS (Basic) | - | -5.36 | -0.15 | -1.39 |
| Diluted Shares Outstanding | 82.39M | 81.7M | 78.02M | 78.02M |
| Basic Shares Outstanding | 78.62M | 79.19M | 78.02M | 78.02M |
| Dividend Payout Ratio | - | - | - | - |
High Customer Acquisition Costs
According to recent financial disclosures, Hinge Health achieved a 47.2% year-over-year revenue growth rate in 2026Q1, signaling that the company's enterprise-focused digital clinic model continues to capture significant market share within the competitive employer-sponsored insurance landscape despite broader macroeconomic headwinds affecting the digital health sector.
The consistent revenue trajectory suggests that the company's multi-year contract structure is successfully insulating it from short-term volatility. Investors should monitor whether this growth remains organic or if it becomes increasingly dependent on aggressive pricing concessions to displace incumbent point solutions.
As reported in the latest quarterly filings, Hinge Health maintained a robust gross margin of 84.6% in 2026Q1, reflecting the high scalability of its software-led digital therapy platform and the successful integration of automated feedback mechanisms into its core musculoskeletal care delivery ecosystem.
This margin profile appears superior to traditional telehealth peers, suggesting that the company's proprietary computer vision technology effectively reduces the reliance on high-cost human clinical labor. However, the sustainability of these margins warrants further investigation into the potential for rising hardware replacement costs or increased clinical service requirements.
Based on the income statement data, Hinge Health transitioned to a positive operating margin of 17.6% in 2026Q1, marking a significant departure from the deep losses observed in previous periods and suggesting that the company is finally achieving the necessary scale to absorb its fixed overhead.
The rapid improvement in operating income indicates that management has successfully prioritized expense discipline following the volatile 2025Q2 period. It remains to be seen whether this leverage is durable or if it reflects a temporary reduction in growth-related investments that could hinder long-term competitive positioning.
Financial statements reveal that Hinge Health's net income is heavily influenced by non-operating items, including a substantial $11.7 million in stock-based compensation recorded in 2026Q1, which complicates the assessment of the company's underlying cash-generating capability and true operational profitability for equity holders.
The significant fluctuations in EPS, particularly the extreme variance seen in 2025Q2, suggest that investors should focus on adjusted metrics that strip out non-cash compensation expenses. The reliance on equity-based incentives may indicate a strategy to preserve cash, but it also introduces potential dilution risks that warrant careful monitoring.
Data from recent periods suggests that Hinge Health's revenue recognition may be sensitive to performance-based milestones, which creates an inherent risk that reported figures could be subject to future clawbacks or downward revisions if clinical outcome targets are not consistently met across the enterprise client base.
Short-sellers may focus on the potential for 'booked' revenue to outpace 'recognized' revenue, creating a lag that masks underlying demand weakness. If the company's medical cost savings fail to materialize for large employers, the current pricing power may face significant downward pressure during contract renewal cycles.
Quick answers to the most common questions about buying HNGE stock.
For fiscal year 2025, Hinge Health, Inc. (HNGE) reported total revenue of $587.9M. This represents a 100.8% increase compared to $292.7M in 2023.
Hinge Health, Inc. (HNGE) reported a net loss of $528.3M for the fiscal year ending 2025.
Hinge Health, Inc. (HNGE) reported an operating income of $-546.4M, resulting in an operating profit margin of -92.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Hinge Health, Inc. (HNGE) generated $468.2M in gross profit for the year, representing a gross profit margin of 79.6%. This demonstrates the company's core pricing power and production efficiency.