Revenue growth accelerated to 53% YoY in Q2 2026, reaching $212.8M, while gross margin expanded to 86.4% and operating margin swung to +19.0% from -4.2% a year earlier, demonstrating strong operating leverage.
Hinge Health, Inc. (HNGE) annual income statement — 3-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 |
|---|
| Sales/Revenue | 720.06M | 587.86M | 390.4M | 292.73M |
| Revenue Growth % | 55.56% | 50.58% | 33.37% | - |
| Cost of Goods Sold | 111.47M | 118.56M | 89.81M | 98.55M |
| COGS % of Revenue | - | 20.17% | 23% | 33.67% |
| Gross Profit | 608.59M | 469.3M | 300.59M | 194.18M |
| Gross Margin % | 84.52% | 79.83% | 77% | 66.33% |
| Gross Profit Growth % | - | 56.13% | 54.8% | - |
| Operating Expenses | 514.92M | 1.02B | 332.5M | 324.69M |
| OpEx % of Revenue | - | 172.77% | 85.17% | 110.92% |
| Selling, General & Admin | 385.15M | 639.41M | 227.53M | 214.63M |
| SG&A % of Revenue | - | 108.77% | 58.28% | 73.32% |
| Research & Development | 129.07M | 368.14M | 100.84M | 110.06M |
| R&D % of Revenue | - | 62.62% | 25.83% | 37.6% |
| Other Operating Expenses | 705K | 8.12M | 4.13M | 0 |
| Operating Income | 93.67M | -546.37M | -31.91M | -130.51M |
| Operating Margin % | 13.01% | -92.94% | -8.17% | -44.59% |
| Operating Income Growth % | - | -1612.23% | 75.55% | - |
| EBITDA | 97.69M | -541.24M | -29.56M | -128.39M |
| EBITDA Margin % | 13.57% | -92.07% | -7.57% | -43.86% |
| EBITDA Growth % | 117.01% | -1730.98% | 76.98% | - |
| D&A (Non-Cash Add-back) | 4.02M | 5.13M | 2.35M | 2.13M |
| EBIT | 98.87M | -541.02M | -24.43M | -130.51M |
| Net Interest Income | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 |
| Other Income/Expense | 17.28M | 19.11M | 20.65M | 21.97M |
| Pretax Income | 110.95M | -527.26M | -11.26M | -108.55M |
| Pretax Margin % | 15.41% | -89.69% | -2.88% | -37.08% |
| Income Tax | 1.88M | 998K | 677K | -405K |
| Effective Tax Rate % | 1.7% | -0.19% | -6.01% | 0.37% |
| Net Income | 109.07M | -528.26M | -11.93M | -108.14M |
| Net Margin % | 15.15% | -89.86% | -3.06% | -36.94% |
| Net Income Growth % | 124.04% | -4326.89% | 88.97% | - |
| Net Income (Continuing) | 109.07M | -528.26M | -11.93M | -108.14M |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.32 | -5.19 | -0.15 | -1.39 |
| EPS Growth % | 122.11% | -3360% | 89.21% | - |
| EPS (Basic) | - | -5.36 | -0.15 | -1.39 |
| Diluted Shares Outstanding | 82.34M | 81.7M | 78.02M | 78.02M |
| Basic Shares Outstanding | 78.8M | 79.19M | 78.02M | 78.02M |
| Dividend Payout Ratio | - | - | - | - |
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 $469.3M in gross profit for the year, representing a gross profit margin of 79.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Platform consolidation by insurers
Metrics are mathematically derived from official filings.
Accelerating Revenue Momentum
Hinge Health's revenue grew 53% year-over-year in Q2 2026, reaching $212.8M, according to the latest quarterly report, marking a clear acceleration from the 47% growth in Q1 2026.
The sequential acceleration from 47.2% to 53.0% YoY growth suggests that the company's enterprise sales motion is gaining traction, likely driven by new contract wins and expansion within existing accounts. The raised forward guidance to $223M-$225M implies management expects this momentum to persist, which may indicate that the market opportunity remains underpenetrated. However, investors should monitor whether this growth rate is sustainable as the revenue base expands.
Gross Margin Expansion Signals Scalability
Gross margin improved to 86.4% in Q2 2026 from 70.3% a year earlier, as reported in the income statement, reflecting the scalable nature of the digital delivery model.
The 16-percentage-point expansion in gross margin over the past year suggests that the company is achieving better cost efficiencies in delivering its digital MSK solutions, possibly through reduced hardware costs or improved therapist utilization. This high gross margin, coupled with the company's full-stack integration, may indicate a durable competitive advantage. However, the sustainability of this margin depends on the company's ability to manage clinical labor costs and hardware replacement cycles.
Operating Leverage Emerging
Operating margin swung from -4.2% in Q2 2025 to +19.0% in Q2 2026, as per the latest financials, indicating that revenue growth is now outpacing fixed cost increases.
The dramatic improvement in operating margin, driven by a 53% revenue increase while SG&A grew at a slower pace, suggests that the company is beginning to realize operating leverage. The Q2 2026 operating income of $40.4M contrasts sharply with the $580.7M loss in Q2 2025, which was distorted by a one-time SBC charge. This inflection may indicate that the aggressive investment phase is transitioning to a more balanced growth and profitability model.
Earnings Quality Marred by SBC Volatility
Net income of $43.7M in Q2 2026 includes $19.1M in stock-based compensation, as disclosed in the financial statements, suggesting that reported profitability is partially non-cash.
While the company reported a strong EPS of $0.53, the significant SBC expense, though lower than the $591M in Q2 2025, still represents a substantial non-cash charge. This may indicate that the true cash earnings power is lower than reported, and investors should adjust for SBC when valuing the company. The tax rate appears favorable, contributing to the high net margin, but this may not be sustainable.
Cost Discipline Amidst Growth
SG&A as a percentage of revenue fell to 51.5% in Q2 2026 from 71.5% in Q2 2025, based on the income statement data, reflecting improved cost discipline.
The reduction in SG&A intensity suggests that the company is gaining efficiency in its sales and marketing efforts, likely due to brand recognition and enterprise referrals. R&D spending remained relatively stable at around 16% of revenue, indicating a continued commitment to product innovation. However, the company's ability to maintain this discipline while scaling will be critical to sustaining margin expansion.
Q2 2026 Marks Profitability Inflection
The transition from a -$580.7M operating loss in Q2 2025 to a $40.4M operating profit in Q2 2026, as reported, represents a pivotal shift in the company's financial trajectory.
This inflection was driven by a combination of revenue growth, gross margin expansion, and controlled operating expenses, excluding the one-time SBC charge in the prior year. The company's ability to sustain this profitability will depend on maintaining growth rates and managing costs. The raised guidance suggests management's confidence in the durability of this inflection, but investors should monitor whether this is a one-time event or a sustainable trend.
What Could Invalidate the Base Case
Despite the strong Q2 2026 beat, the risk of insurer platform consolidation and the sustainability of 53% growth warrant scrutiny, as reported in the latest earnings release.
The recent consolidation of digital health point solutions by major insurers like UnitedHealth/Optum poses a structural threat to Hinge's standalone value proposition. If employers shift toward integrated offerings, Hinge's revenue growth could decelerate sharply. Additionally, the 53% YoY growth may be partly driven by one-time contract wins that are not repeatable, and the high gross margin could compress if hardware replacement costs rise or clinical labor wages increase. Investors should also consider that the Q2 2025 loss was inflated by a one-time SBC charge, making the year-over-year comparison flattering; the underlying improvement in operating leverage may be less dramatic than it appears.