{"success":true,"data":{"pressRelease":{"id":"108525","rtpr_id":"nBw94tgpBa","ticker":"HNGE","exchange":"NYSE","all_tickers":["HNGE"],"title":"Hinge Health reports record second quarter 2026 financial results; signs definitive agreement to acquire Cylinder Health","author":"Business Wire","published_at":"2026-08-04T20:05:00.564Z","article_body":"Hinge Health reports record second quarter 2026 financial results; signs\ndefinitive agreement to acquire Cylinder Health\n\n\n * Signed a definitive agreement to acquire Cylinder Health, Inc., expanding into\ngastrointestinal care\n\n * Revenue increased 53% year-over-year to $213 million\n\n * Free cash flow of $100 million, up 3x year-over-year\n\n * 2026 revenue guidance midpoint raised to $858 million, reflecting 46%\nyear-over-year growth\n\n * Board approved a $300 million increase to the share repurchase program\n\nHinge Health, Inc. (NYSE: HNGE) today announced financial results for the\nsecond quarter ended June 30, 2026 and provided a business update.\n\n“We delivered another strong quarter ahead of expectations, generating $213\nmillion in revenue with 53% year-over-year growth, while more than tripling\nfree cash flow from a year ago. This quarter’s outperformance was driven by\ncontinued high member conversion and reflects our ability to deliver a great\nexperience, improve member outcomes and lower client costs,” said Daniel\nPerez, Co-Founder and CEO, Hinge Health. “We also announced the acquisition\nof Cylinder Health today, marking our entry into gastrointestinal (GI) care.\nCombined with the strength of our core musculoskeletal care programs and the\nrapid adoption of our Migraine Care Program, our expansion into GI is another\nstep toward our vision of building a durable, multi-condition platform to\nautomate the delivery of care. Building on this momentum, we're raising our\nrevenue and profitability expectations for the remainder of 2026, and are\nconfident in our trajectory for 2027.”\n\nSecond Quarter Financial Highlights:\n\n\n * Revenue increased 53% year-over-year to $212.8 million compared to revenue of\n$139.1 million in Q2 2025.\n\n * GAAP gross margin was 86% compared to 70% in Q2 2025. Non-GAAP gross margin\nwas 87% compared to 83% in Q2 2025.\n\n * GAAP income from operations increased to $40.4 million compared to GAAP loss\nfrom operations of $580.7 million in Q2 2025, which included $591.0 million in\nstock-based compensation expense. Non-GAAP income from operations increased\n136% to $61.5 million compared to $26.1 million in Q2 2025.\n\n * GAAP operating margin was 19% compared to (417)% in Q2 2025. Non-GAAP\noperating margin was 29% compared to 19% in Q2 2025.\n\n * GAAP diluted net income per share was $0.52 compared to a GAAP diluted net\nloss per share of $13.10 in Q2 2025. Non-GAAP diluted net income per share was\n$0.59 compared to $0.30 in Q2 2025.\n\n * Net cash provided by operating activities increased to $101.4 million compared\nto $20.2 million in Q2 2025. Free cash flow increased to $99.6 million\ncompared to $32.6 million in Q2 2025.\n\n * Cash, cash equivalents, marketable securities and restricted cash were $475.6\nmillion as of June 30, 2026.\n\nCompany Highlights and Key Metrics:\n\n\n * LTM calculated billings increased 52% year-over-year to $861.8 million as of\nJune 30, 2026, compared to $568.4 million as of June 30, 2025.\n\n * Number of clients increased 24% year-over-year to 2,929 clients as of June 30,\n2026, compared to 2,359 clients as of June 30, 2025.\n\n * Signed a definitive agreement to acquire Cylinder Health, Inc., a leader in\nvirtual-first digestive healthcare, for $105 million in cash consideration.\nThe acquisition will combine Cylinder Health’s clinical expertise and\nexisting market footprint with Hinge Health’s AI-powered care model and\ntechnology platform to deliver support in a single app with an integrated\nGastrointestinal Care Program, expected to launch in 2027. The transaction is\nsubject to customary closing conditions and is expected to close in the third\nquarter of 2026.\n\nFinancial Outlook:\n\nWe are providing the following guidance for our third quarter 2026 and full\nyear 2026:\n\n\n * Q3 2026: We expect revenue to be between $223 million and $225 million,\nreflecting year-over-year growth of 45% at the midpoint. We expect non-GAAP\nincome from operations to be between $61 million and $63 million, reflecting\nyear-over-year growth of 104% and non-GAAP operating margin of 28% at the\nmidpoint.\n\n * Full Year 2026: We are raising our revenue guidance to be between $856 million\nand $860 million, reflecting year-over-year growth of 46% at the midpoint. We\nare raising our non-GAAP income from operations guidance to be between $236\nmillion and $244 million, reflecting year-over-year growth of 101% and\nnon-GAAP operating margin of 28% at the midpoint.\n\nShare Repurchase Program\n\nOn November 10, 2025, our board of directors approved a share repurchase\nprogram with authorization to purchase up to $250 million of our Class A\ncommon stock. As of July 29, 2026, we had repurchased an aggregate of $196.5\nmillion of our Class A common stock under the program. On July 29, 2026, our\nboard of directors approved an increase to the program, resulting in $300.0\nmillion of our Class A common stock available for future repurchase, for a\ntotal aggregate amount authorized under the program of $496.5 million as of\nsuch date.\n\nRepurchases under the program may be made in the open market, in privately\nnegotiated transactions or by other methods, with the amount, manner, price,\nand timing of repurchases to be determined at our discretion, depending on a\nvariety of factors, including business, economic and market conditions,\nprevailing stock prices, corporate and regulatory requirements, and other\nconsiderations. Open market repurchases will be structured to occur in\naccordance with applicable federal securities laws, including within the\npricing and volume requirements of Rule 10b-18 under the Securities Exchange\nAct of 1934, as amended. We may also, from time to time, enter into Rule\n10b5-1 plans to facilitate repurchases of our shares under this authorization.\nThis program does not obligate us to repurchase any particular dollar amount\nor number of shares of Class A common stock, has no expiration date, and may\nbe modified, suspended or terminated at any time at the discretion of our\nboard of directors. We expect to fund repurchases with existing cash and cash\nequivalents and ongoing cash from operations.\n\nStatement Regarding Use of Non-GAAP Financial Measures\n\nThis press release uses non-GAAP financial measures, which are not calculated\nin accordance with generally accepted accounting principles of the United\nStates (GAAP). For more information about these non-GAAP financial measures,\nincluding the limitations of such measures, and for a reconciliation of each\nmeasure to the most directly comparable measure calculated in accordance with\nGAAP, please see the “Non-GAAP Financial Measures” section below.\n\nMoreover, we have not reconciled our non-GAAP income from operations and\nnon-GAAP operating margin guidance to GAAP income from operations and GAAP\noperating margin because we do not and are not able to provide guidance for\nGAAP income from operations due to the uncertainty and potential variability\nof stock-based compensation expense, employer payroll tax expense related to\nstock-based compensation, amortization of intangible assets and adjustments,\nsuch as acquisition-related expense, which are reconciling items between\nnon-GAAP and GAAP income from operations and operating margin. Because such\nitems cannot be provided without unreasonable efforts, we are unable to\nprovide a reconciliation of the non-GAAP financial measure guidance to the\ncorresponding GAAP measures. However, such items could have a significant\nimpact on our future GAAP income from operations.\n\nHinge Health Earnings Webcast\n\nWe will host a conference call and webcast for investors on August 4, 2026 at\n1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss our financial\nresults, business highlights and financial outlook. The live webcast of the\nconference call can be accessed by registering online at\nir.hingehealth.com/events-presentations\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fir.hingehealth.com%2Fevents-presentations%2F&esheet=54582824&newsitemid=20260804672898&lan=en-US&anchor=ir.hingehealth.com%2Fevents-presentations&index=1&md5=6de15f660a22919a0754634b5505fcc5)\n. Following completion of the event, a webcast replay will also be available\nat ir.hingehealth.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fir.hingehealth.com%2F&esheet=54582824&newsitemid=20260804672898&lan=en-US&anchor=ir.hingehealth.com&index=2&md5=5ef9509b1d4075efad3d629227d7cc9b)\nfor 12 months.\n\nAbout Hinge Health\n\nHinge Health is focused on scaling and automating the delivery of health care.\nLeveraging an AI-powered care model, connected hardware and access to expert\nclinicians, Hinge Health delivers personalized, evidence-based care that\nimproves member outcomes and experiences while reducing costs for clients. The\ncompany is headquartered in San Francisco, California.\n\nAvailable Information\n\nOur investors and others should note that we announce material information to\nthe public about our company, products and services, and other matters related\nto our company through a variety of means, including filings with the U.S.\nSecurities and Exchange Commission (“SEC”), the investor relations page on\nour website (ir.hingehealth.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fir.hingehealth.com%2F&esheet=54582824&newsitemid=20260804672898&lan=en-US&anchor=ir.hingehealth.com&index=3&md5=74ca0e94e900579379ec0be672f85c83)\n), press releases, public conference calls, and webcasts in order to achieve\nbroad, non-exclusionary distribution of information to the public and to\ncomply with our obligations under Regulation FD.\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nSection 27A of the Securities Act of 1933, as amended, Section 21E of the\nSecurities Exchange Act of 1934, as amended, and the Private Securities\nLitigation Reform Act of 1995. All statements other than statements of\nhistorical facts contained in this press release may be forward-looking\nstatements. Forward-looking statements generally relate to future events or\nour future financial or operating performance. In some cases, you can identify\nforward-looking statements because they contain words such as\n“anticipate,” “believe,” “contemplate,” “continue,”\n“could,” “estimate,” “expect,” “intend,” “may,”\n“plan,” “potential,” “predict,” “project,” “should,”\n“target,” or “will,” or the negative of these words or other similar\nterms or expressions that concern our expectations, strategy, plans or\nintentions. Forward-looking statements in this release include, but are not\nlimited to, statements regarding our proposed acquisition of Cylinder Health\nand the timing and anticipated benefits and synergies associated with the\nacquisition, statements regarding our expectations regarding our financial\nposition and operating performance, including our outlook and guidance for the\nthird quarter of 2026 and guidance for full year 2026 and our assumptions\nunderlying such guidance; expectations regarding our share repurchase program;\nour ability to drive future growth and execute on our goals and strategies;\nand our expectations regarding our product innovation. Our expectations and\nbeliefs regarding these matters may not materialize, and actual results in\nfuture periods are subject to risks and uncertainties that could cause actual\nresults to differ materially from those projected, including those more fully\ndescribed in our filings with the SEC, including in our Annual Report on Form\n10-K for the year ended December 31, 2025, filed with the SEC on March 3, 2026\nand in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026,\nwhen filed with the SEC. The forward-looking statements in this press release\nare based on information available to us as of the date hereof, and we\ndisclaim any obligations to update any forward-looking statements, except as\nrequired by law.\n HINGE HEALTH, INC. \n CONDENSED CONSOLIDATED BALANCE SHEETS \n (unaudited) \n (in thousands, except par value data) \n   \n     June 30, 2026   December 31, 2025 \n Assets         \n Current assets:         \n Cash and cash equivalents   $ 286,224     $ 207,995   \n Short-term marketable securities     103,167       155,867   \n Accounts receivable, net of allowance for credit losses of $6,706 and $6,092     125,432       66,061   \n as of June 30, 2026 and December 31, 2025, respectively \n Deferred commissions     43,440       31,344   \n Inventory     16,769       15,636   \n Prepaid expenses and other current assets     68,321       57,001   \n Total current assets     643,353       533,904   \n Long-term marketable securities     84,742       113,172   \n Goodwill     64,096       64,096   \n Intangible assets, net     2,063       2,512   \n Property, equipment and software, net     12,745       10,490   \n Operating lease right-of-use assets     5,027       6,861   \n Other assets     15,372       13,726   \n Total assets   $ 827,398     $ 744,761   \n Liabilities, redeemable convertible preferred stock and stockholders’ equity         \n Current liabilities:         \n Accounts payable and accrued liabilities   $ 60,719     $ 57,331   \n Operating lease liabilities     4,254       4,223   \n Deferred revenue     416,466       300,855   \n Total current liabilities     481,439       362,409   \n Operating lease liabilities, noncurrent     1,631       3,816   \n Total liabilities     483,070       366,225   \n Redeemable convertible preferred stock:         \n Redeemable convertible preferred stock; $0.00001 par value     —       199,874   \n Stockholders’ equity:         \n Class A common stock, $0.00001 par value     —       —   \n Class B common stock, $0.00001 par value     —       —   \n Additional paid-in capital     1,316,870       1,229,678   \n Accumulated other comprehensive loss     (364 )     (20 ) \n Accumulated deficit     (972,178 )     (1,050,996 ) \n Total stockholders’ equity     344,328       178,662   \n Total liabilities, redeemable convertible preferred stock and stockholders’   $ 827,398     $ 744,761   \n equity \n\n HINGE HEALTH, INC. \n CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS \n (unaudited) \n (in thousands, except per share data) \n   \n     Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n Revenue   $ 212,817     $ 139,098     $ 395,124     $ 262,923   \n Cost of revenue     28,868       41,335       56,942       64,927   \n Gross profit     183,949       97,763       338,182       197,996   \n Operating expenses:                 \n Research and development     34,057       279,962       64,395       303,462   \n Sales and marketing     81,408       147,228       150,210       193,944   \n General and administrative     28,044       251,244       51,068       268,125   \n Total operating expenses     143,509       678,434       265,673       765,531   \n Income (loss) from operations     40,440       (580,671 )     72,509       (567,535 ) \n Other income:                 \n Other income, net     3,990       4,694       7,863       9,695   \n Net income (loss) before income taxes     44,430       (575,977 )     80,372       (557,840 ) \n Provision for (benefit from) income taxes     740       (326 )     1,554       672   \n Net income (loss)   $ 43,690     $ (575,651 )   $ 78,818     $ (558,512 ) \n Adjustment to reflect deemed contribution from Series D and Series E     —       —       —       104,174   \n redeemable convertible preferred stock extinguishment \n Income allocated to participating securities     (588 )     —       (1,784 )     —   \n Net income (loss) attributable to common stockholders, basic   $ 43,102     $ (575,651 )   $ 77,034     $ (454,338 ) \n Net income (loss) attributable to common stockholders, diluted   $ 43,133     $ (575,651 )   $ 77,109     $ (454,338 ) \n Net income (loss) attributable to common stockholders per share:                 \n Basic   $ 0.55     $ (13.10 )   $ 0.98     $ (15.05 ) \n Diluted   $ 0.52     $ (13.10 )   $ 0.94     $ (15.05 ) \n Weighted average shares used in computing net income (loss) per share                 \n attributable to common stockholders: \n Basic     78,969       43,931       78,795       30,190   \n Diluted     83,424       43,931       82,344       30,190   \n\n HINGE HEALTH, INC. \n CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS \n (unaudited) \n (in thousands) \n   \n     Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n Operating activities:                 \n Net income (loss)   $ 43,690     $ (575,651 )   $ 78,818     $ (558,512 ) \n Adjustments to reconcile net income (loss) to net cash provided by (used in)                 \n operating activities: \n Depreciation and amortization     1,061       1,343       2,234       2,646   \n Stock-based compensation     19,092       590,983       30,784       590,990   \n Amortization of deferred commissions     19,085       10,680       35,290       19,870   \n Accretion of discounts and amortization of premiums on marketable securities,     569       277       704       326   \n net \n Non-cash operating lease expense     929       843       1,834       1,688   \n Provision for credit losses     1,613       1,894       1,613       2,780   \n Deferred income taxes     13       90       13       96   \n Other     (1 )     2       (1 )     (2 ) \n Changes in operating assets and liabilities:                 \n Accounts receivable     (12,124 )     (25,304 )     (60,984 )     (59,584 ) \n Deferred commissions     (28,476 )     (17,020 )     (49,079 )     (27,650 ) \n Inventory     (2,602 )     (1,202 )     (1,132 )     (3,114 ) \n Prepaid expenses and other current assets     (7,730 )     (14,743 )     (11,320 )     (6,609 ) \n Other assets     331       (211 )     (327 )     (485 ) \n Accounts payable and accrued liabilities     (8,654 )     (8,713 )     2,592       6,997   \n Operating lease liabilities     (1,084 )     (851 )     (2,154 )     (1,792 ) \n Deferred revenue     75,701       57,810       115,611       57,505   \n Net cash provided by operating activities     101,413       20,227       144,496       25,150   \n Investing activities:                 \n Purchase of property and equipment     (123 )     (197 )     (206 )     (248 ) \n Capitalized internal use software     (1,731 )     (1,630 )     (3,178 )     (2,336 ) \n Purchases of marketable securities     (30,921 )     (85,110 )     (89,877 )     (175,282 ) \n Maturities of marketable securities     61,393       90,958       169,960       164,556   \n Acquisition of a business     —       —       —       (4,000 ) \n Net cash provided by (used in) investing activities     28,618       4,021       76,699       (17,310 ) \n Financing activities:                 \n Proceeds from exercise of common stock options     270       159       680       256   \n Issuance of common stock in connection with the employee stock purchase plan     7,276       —       7,276       —   \n Proceeds from issuance of common stock in initial public offering, net of     —       255,675       —       255,675   \n issuance costs \n Repurchase and retirement of common stock     (26,525 )     —       (131,491 )     —   \n Tax withholdings on settlement of restricted stock units and performance-based     (11,499 )     (272,258 )     (19,791 )     (272,258 ) \n restricted stock units \n Payment on Repurchase Agreement with Coatue     —       (50,000 )     —       (50,000 ) \n Proceeds from repayment of non-recourse loans to employees     —       —       —       4,934   \n Payments for deferred offering costs     —       (9,134 )     —       (10,061 ) \n Net cash used in financing activities     (30,478 )     (75,558 )     (143,326 )     (71,454 ) \n Net increase (decrease) in cash, cash equivalents and restricted cash     99,553       (51,310 )     77,869       (63,614 ) \n Cash, cash equivalents, and restricted cash, beginning of period     188,112       290,282       209,796       302,586   \n Cash, cash equivalents, and restricted cash, end of period   $ 287,665     $ 238,972     $ 287,665     $ 238,972   \n Reconciliation of cash, cash equivalents, and restricted cash to the unaudited                 \n condensed consolidated balance sheets: \n Cash and cash equivalents   $ 286,224     $ 237,170     $ 286,224     $ 237,170   \n Restricted cash     1,441       1,802       1,441       1,802   \n Total cash, cash equivalents, and restricted cash   $ 287,665     $ 238,972     $ 287,665     $ 238,972   \n\n\nGlossary of Terms\n\nLTM Calculated Billings: We believe calculated billings on a last 12-months\nbasis helps investors better understand our performance for a particular\nperiod given the seasonality in our model due to quarterly fluctuations based\non the timing of new client launches. We anticipate that this seasonality will\ncontinue and therefore focus on LTM calculated billings. Our revenue generally\ndoes not reflect this seasonality and these quarterly fluctuations given that\nwe recognize revenue ratably over the term that members have access to our\nplatform. LTM calculated billings are defined as total revenue, plus the\nchange in deferred revenue, less the change in contract assets for a given\n12-month period.\n\nClients: We view this number as an important metric to assess the performance\nof our business as an increased number of clients drives growth, increases\nbrand awareness, and helps provide scale to our business. Clients are defined\nas businesses or organizations, which we call entities, that have at least one\nactive agreement with us at the end of a particular period. Entities that\nprocure our platform through our partners are counted as individual clients.\nWe do not count our partners as clients, unless they also separately have at\nleast one active client agreement with us. When a partner has an agreement\nwith us for their fully-insured population, that partner is deemed to be one\nclient, despite there being multiple fully-insured employers within that\nentity that have access to our platform.\n\nNon-GAAP Financial Measures\n\nIn addition to our results prepared in accordance with GAAP, we believe the\nfollowing non-GAAP financial measures, including non-GAAP gross profit and\ngross margin, non-GAAP income from operations and operating margin, non-GAAP\noperating expenses, non-GAAP net income attributable to common stockholders,\ndiluted, non-GAAP net income per share attributable to common stockholders,\ndiluted (which we refer to as \"non-GAAP diluted net income per share\") and\nfree cash flow and free cash flow margin included in this press release,\nprovide users of our financial information with additional useful information\nin evaluating our performance and liquidity and allows them to more readily\ncompare our results across periods without the effect of non-cash and other\nitems as detailed below. Additionally, our management and board of directors\nuse our non-GAAP financial measures to evaluate our performance and liquidity,\nidentify trends and make strategic decisions.\n\nThere are limitations to the use of the non-GAAP financial measures presented\nin this press release. For example, our non-GAAP financial measures may not be\ncomparable to similarly titled measures of other companies. Other companies,\nincluding companies in our industry, may calculate non-GAAP financial measures\ndifferently than we do, limiting the usefulness of those measures for\ncomparative purposes. Our non-GAAP financial measures should not be considered\nin isolation or as alternatives to gross profit, gross margin, income from\noperations, net income attributable to common stockholders, net income per\nshare attributable to common stockholders, net cash provided by operating\nactivities or any other measure of financial performance calculated and\npresented in accordance with GAAP.\n\nNon-GAAP Gross Profit and Gross Margin\n\nWe define non-GAAP gross profit as gross profit presented in accordance with\nGAAP, adjusted to exclude non-cash, non-operational and non-recurring items,\nincluding stock-based compensation expense, employer payroll tax expense\nrelated to stock-based compensation, and amortization of intangible assets. We\ndefine non-GAAP gross margin as non-GAAP gross profit divided by revenue.\n\nThe principal limitation of non-GAAP gross profit and non-GAAP gross margin is\nthat they exclude significant expenses that are required by GAAP to be\nrecorded in our unaudited condensed consolidated financial statements,\nincluding non-cash expenses, and the impact of non-recurring charges that we\ndo not consider to be indicative of our ongoing core operations.\n\nNon-GAAP Income From Operations and Operating Margin\n\nWe define non-GAAP income from operations as income (loss) from operations\npresented in accordance with GAAP, adjusted to exclude non-cash,\nnon-operational and non-recurring items, including stock-based compensation\nexpense, employer payroll tax expense related to stock-based compensation,\namortization of intangible assets and acquisition-related expenses. We define\nnon-GAAP operating margin as non-GAAP income from operations divided by\nrevenue.\n\nThe principal limitation of non-GAAP income from operations and non-GAAP\noperating margin is that they exclude significant expenses that are required\nby GAAP to be recorded in our unaudited condensed consolidated financial\nstatements, including non-cash expenses, and the impact of non-recurring\ncharges that we do not consider to be indicative of our ongoing core\noperations.\n\nNon-GAAP Operating Expenses\n\nWe define non-GAAP operating expenses as operating expenses presented in\naccordance with GAAP, adjusted to exclude non-cash, non-operational and\nnon-recurring items, including stock-based compensation expense, employer\npayroll tax expense related to stock-based compensation, amortization of\nintangible assets and acquisition-related expenses.\n\nThe principal limitation of non-GAAP research and development expenses,\nnon-GAAP sales and marketing expenses and non-GAAP general and administrative\nexpenses is that they exclude significant expenses that are required by GAAP\nto be recorded in our unaudited condensed consolidated financial statements,\nincluding non-cash expenses, and the impact of non-recurring charges that we\ndo not consider to be indicative of our ongoing core operations.\n\nNon-GAAP Net Income Attributable to Common Stockholders, Diluted and Non-GAAP\nNet Income Per Share Attributable to Common Stockholders, Diluted\n\nWe define non-GAAP net income attributable to common stockholders, diluted and\nnon-GAAP net income per share attributable to common stockholders, diluted\n(which we refer to as “non-GAAP diluted net income per share”) as GAAP net\nincome attributable to common stockholders and GAAP net income per share\nattributable to common stockholders, diluted, respectively, adjusted to\nexclude non-cash, non-operational and non-recurring items, including\nstock-based compensation, employer payroll taxes related to stock-based\ncompensation, amortization of intangible assets, acquisition-related expenses\nand the income tax effects related to non-GAAP adjustments.\n\nFree Cash Flow and Free Cash Flow Margin\n\nWe define free cash flow as net cash provided by operating activities plus\ncash used for employer payroll taxes at IPO related to stock-based\ncompensation less purchases of property, equipment and software (including\ncapitalized internal-use software). We believe that free cash flow is a\nhelpful indicator of liquidity that provides information to management and\ninvestors about the amount of cash generated or used by our operations that,\nafter taking into account the employer payroll taxes paid as part of the\nvesting of shares at IPO as well as investments in property, equipment and\nsoftware (including capitalized internal-use software), can be used for\nstrategic initiatives, including investing in our business and strengthening\nour financial position. The principal limitation of free cash flow is that it\ndoes not represent the total increase or decrease in our cash balance for a\ngiven period. We define free cash flow margin as free cash flow divided by\nrevenue.\n\nWe adjust the following items from one or more of our non-GAAP financial\nmeasures:\n\nStock-based compensation expense. We exclude stock-based compensation expense,\nwhich is a non-cash expense, from certain of our non-GAAP financial measures\nbecause we believe that excluding this item provides meaningful supplemental\ninformation regarding our operating performance.\n\nEmployer payroll tax expense related to stock-based compensation. We exclude\nexpenses for employer payroll taxes related to stock-based compensation from\ncertain of our non-GAAP financial measures because we believe that excluding\nthis item provides meaningful supplemental information regarding operational\nperformance. In particular, this expense is tied to the exercise, vesting or\nsale of underlying equity awards and the price of our common stock at the time\nof exercise, vesting or sale which may vary from period to period independent\nof the operating performance of our business.\n\nAmortization of intangible assets. We exclude amortization of intangible\nassets, which is a non-cash expense, from certain of our non-GAAP financial\nmeasures. Our expenses for amortization of intangible assets are inconsistent\nin amount and frequency because they are significantly affected by the timing,\nsize of acquisitions and the inherent subjective nature of purchase price\nallocations. We exclude these amortization expenses because we do not believe\nthese expenses have a direct correlation to the operating performance of our\nbusiness.\n\nAcquisition-related expenses. We exclude certain charges that are attributable\nto acquiring businesses. We exclude these charges because we do not believe\nthese charges have a direct correlation to the operating performance of our\nbusiness.\n\nIncome tax effect of non-GAAP adjustments. We exclude the valuation allowance\nthat is attributable to our non-GAAP income beginning in 2025. For the three\nand six months ended June 30, 2026 we used a forecasted annual tax rate of 24%\nand for the three and six months ended June 30, 2025 we used an annual tax\nrate of 20%. These tax rates reflect current available information, as well as\nother factors and assumptions. We will periodically re-evaluate this tax rate,\nas necessary, for significant events, relevant tax law changes, material\nchanges in the forecasted geographic earnings mix, and any significant\ntransactions.\n HINGE HEALTH, INC. \n (unaudited) \n (in thousands, except percentages) \n   \n Reconciliation of GAAP to Non-GAAP Financial Measures: \n     Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n GAAP gross profit   $ 183,949     $ 97,763     $ 338,182     $ 197,996   \n GAAP gross margin     86 %     70 %     86 %     75 % \n Non-GAAP adjustments:                 \n Stock-based compensation expense ((1))     1,128       16,441       1,965       16,441   \n Employer payroll tax expense related to stock-based compensation     45       893       150       893   \n Amortization of intangible assets     224       225       449       406   \n Non-GAAP gross profit   $ 185,346     $ 115,322     $ 340,746     $ 215,736   \n Non-GAAP gross margin     87 %     83 %     86 %     82 % \n   \n     Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n GAAP income (loss) from operations   $ 40,440     $ (580,671 )   $ 72,509     $ (567,535 ) \n GAAP operating margin     19 %     (417 )%     19 %     (216 )% \n Non-GAAP adjustments:                 \n Stock-based compensation expense ((1))     19,092       590,983       30,784       590,990   \n Employer payroll tax expense related to stock-based compensation     1,316       14,227       2,800       14,227   \n Amortization of intangible assets     224       225       449       406   \n Acquisition-related expenses     440       1,337       1,134       2,968   \n Non-GAAP income from operations   $ 61,512     $ 26,101     $ 107,676     $ 41,056   \n Non-GAAP operating margin     29 %     19 %     27 %     16 % \n\n (1)   Stock-based compensation expense: \n\n   Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n Cost of revenue   $ 1,128   $ 16,441   $ 1,965   $ 16,441 \n Research and development     7,118     248,809     10,551     248,809 \n Sales and marketing     5,965     95,050     9,969     95,050 \n General and administrative     4,881     230,683     8,299     230,690 \n Total stock-based compensation expense   $ 19,092   $ 590,983   $ 30,784   $ 590,990 \n\n HINGE HEALTH, INC. \n (unaudited) \n (in thousands, except per share amounts) \n   \n     Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n GAAP net income (loss) attributable to common stockholders, diluted   $ 43,133     $ (575,651 )   $ 77,109     $ (454,338 ) \n Non-GAAP adjustments:                 \n Stock-based compensation expense ((1))     19,092       590,983       30,784       590,990   \n Employer payroll tax expense related to stock-based compensation     1,316       14,227       2,800       14,227   \n Amortization of intangible assets     224       225       449       406   \n Acquisition-related expenses     440       1,337       1,134       2,968   \n Income tax effect of non-GAAP adjustments     (14,980 )     (6,484 )     (26,176 )     (9,477 ) \n Other dilutive     (78 )     (8,568 )     (195 )     (69,427 ) \n Non-GAAP net income attributable to common stockholders, diluted   $ 49,147     $ 16,069     $ 85,905     $ 75,349   \n                   \n Non-GAAP net income attributable to common stockholders per share, diluted   $ 0.59     $ 0.30     $ 1.04     $ 1.80   \n                   \n Weighted average shares used in computing non-GAAP net income per share     83,424       52,735       82,344       41,908   \n attributable to common stockholders, diluted \n   \n     Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n GAAP net income (loss) per share attributable to common stockholders, diluted   $ 0.52     $ (13.10 )   $ 0.94     $ (15.05 ) \n Non-GAAP adjustments:                 \n Stock-based compensation expense ((1))     0.22       11.21       0.37       14.10   \n Employer payroll tax expense related to stock-based compensation     0.02       0.27       0.03       0.34   \n Amortization of intangible assets     —       —       0.01       0.01   \n Acquisition-related expenses     0.01       0.03       0.01       0.07   \n Income tax effect of non-GAAP adjustments     (0.18 )     (0.12 )     (0.32 )     (0.23 ) \n Other dilutive     —       2.01       —       2.56   \n Non-GAAP net income per share attributable to common stockholders, diluted   $ 0.59     $ 0.30     $ 1.04     $ 1.80   \n ((2)) \n\n (1)   For details on stock-based compensation expense, see above. \n (2)   Some columns may not add due to rounding. \n\n HINGE HEALTH, INC. \n (unaudited) \n (in thousands, except percentages) \n   \n     Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n GAAP research and development   $ 34,057     $ 279,962     $ 64,395     $ 303,462   \n GAAP research and development as a percentage of revenue     16 %     201 %     16 %     115 % \n Non-GAAP adjustments:                 \n Stock-based compensation expense ((1))     (7,118 )     (248,809 )     (10,551 )     (248,809 ) \n Employer payroll tax expense related to stock-based compensation     (591 )     (7,020 )     (1,263 )     (7,020 ) \n Acquisition-related expenses     (440 )     (1,358 )     (1,134 )     (2,816 ) \n Non-GAAP research and development   $ 25,908     $ 22,775     $ 51,447     $ 44,817   \n Non-GAAP research and development as a percentage of revenue     12 %     16 %     13 %     17 % \n   \n   Three Months Ended June 30, Six Months Ended June 30, \n     2026   2025   2026   2025 \n GAAP sales and marketing   $ 81,408     $ 147,228     $ 150,210     $ 193,944   \n GAAP sales and marketing as a percentage of revenue     38 %     106 %     38 %     74 % \n Non-GAAP adjustments:                 \n Stock-based compensation expense ((1))     (5,965 )     (95,050 )     (9,969 )     (95,050 ) \n Employer payroll tax expense related to stock-based compensation     (372 )     (2,630 )     (781 )     (2,630 ) \n Non-GAAP sales and marketing   $ 75,071     $ 49,548     $ 139,460     $ 96,264   \n Non-GAAP sales and marketing as a percentage of revenue     35 %     36 %     35 %     37 % \n   \n     Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n GAAP general and administrative   $ 28,044     $ 251,244     $ 51,068     $ 268,125   \n GAAP general and administrative as a percentage of revenue     13 %     180 %     13 %     102 % \n Non-GAAP adjustments:                 \n Stock-based compensation expense ((1))     (4,881 )     (230,683 )     (8,299 )     (230,690 ) \n Employer payroll tax expense related to stock-based compensation     (308 )     (3,684 )     (606 )     (3,684 ) \n Acquisition-related expenses     —       21       —       (152 ) \n Non-GAAP general and administrative   $ 22,855     $ 16,898     $ 42,163     $ 33,599   \n Non-GAAP general and administrative as a percentage of revenue     11 %     12 %     11 %     13 % \n\n (1)   For details on stock-based compensation expense, see above. \n\n HINGE HEALTH, INC. \n (unaudited) \n (in thousands, except percentages) \n   \n   Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n Net cash provided by operating activities   $ 101,413     $ 20,227     $ 144,496     $ 25,150   \n Operating cash flow margin     48 %     15 %     37 %     10 % \n Adjustment for employer taxes related to pre-IPO stock-based compensation     —       14,227       —       14,227   \n Less purchases of property, equipment and software (including capitalized     (1,854 )     (1,827 )     (3,384 )     (2,584 ) \n internal use software) \n Free cash flow   $ 99,559     $ 32,627     $ 141,112     $ 36,793   \n Free cash flow margin     47 %     23 %     36 %     14 % \n Net cash provided by (used in) investing activities   $ 28,618     $ 4,021     $ 76,699     $ (17,310 ) \n Net cash used in financing activities   $ (30,478 )   $ (75,558 )   $ (143,326 )   $ (71,454 ) \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260804672898/en/\n(https://www.businesswire.com/news/home/20260804672898/en/)\n\nInvestor Relations Contact: \n\nir@hingehealth.com (mailto:ir@hingehealth.com)\n\nMedia Contact: \n\nmedia@hingehealth.com (mailto:media@hingehealth.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw94tgpBa","title":"Hinge Health reports record second quarter 2026 financial results; signs definitive agreement to acquire Cylinder Health","author":"Business Wire","ticker":"HNGE","created":"2026-08-04T20:05:00.564Z","tickers":["HNGE"],"exchange":"NYSE","article_body":"Hinge Health reports record second quarter 2026 financial results; signs\ndefinitive agreement to acquire Cylinder Health\n\n\n * Signed a definitive agreement to acquire Cylinder Health, Inc., expanding into\ngastrointestinal care\n\n * Revenue increased 53% year-over-year to $213 million\n\n * Free cash flow of $100 million, up 3x year-over-year\n\n * 2026 revenue guidance midpoint raised to $858 million, reflecting 46%\nyear-over-year growth\n\n * Board approved a $300 million increase to the share repurchase program\n\nHinge Health, Inc. (NYSE: HNGE) today announced financial results for the\nsecond quarter ended June 30, 2026 and provided a business update.\n\n“We delivered another strong quarter ahead of expectations, generating $213\nmillion in revenue with 53% year-over-year growth, while more than tripling\nfree cash flow from a year ago. This quarter’s outperformance was driven by\ncontinued high member conversion and reflects our ability to deliver a great\nexperience, improve member outcomes and lower client costs,” said Daniel\nPerez, Co-Founder and CEO, Hinge Health. “We also announced the acquisition\nof Cylinder Health today, marking our entry into gastrointestinal (GI) care.\nCombined with the strength of our core musculoskeletal care programs and the\nrapid adoption of our Migraine Care Program, our expansion into GI is another\nstep toward our vision of building a durable, multi-condition platform to\nautomate the delivery of care. Building on this momentum, we're raising our\nrevenue and profitability expectations for the remainder of 2026, and are\nconfident in our trajectory for 2027.”\n\nSecond Quarter Financial Highlights:\n\n\n * Revenue increased 53% year-over-year to $212.8 million compared to revenue of\n$139.1 million in Q2 2025.\n\n * GAAP gross margin was 86% compared to 70% in Q2 2025. Non-GAAP gross margin\nwas 87% compared to 83% in Q2 2025.\n\n * GAAP income from operations increased to $40.4 million compared to GAAP loss\nfrom operations of $580.7 million in Q2 2025, which included $591.0 million in\nstock-based compensation expense. Non-GAAP income from operations increased\n136% to $61.5 million compared to $26.1 million in Q2 2025.\n\n * GAAP operating margin was 19% compared to (417)% in Q2 2025. Non-GAAP\noperating margin was 29% compared to 19% in Q2 2025.\n\n * GAAP diluted net income per share was $0.52 compared to a GAAP diluted net\nloss per share of $13.10 in Q2 2025. Non-GAAP diluted net income per share was\n$0.59 compared to $0.30 in Q2 2025.\n\n * Net cash provided by operating activities increased to $101.4 million compared\nto $20.2 million in Q2 2025. Free cash flow increased to $99.6 million\ncompared to $32.6 million in Q2 2025.\n\n * Cash, cash equivalents, marketable securities and restricted cash were $475.6\nmillion as of June 30, 2026.\n\nCompany Highlights and Key Metrics:\n\n\n * LTM calculated billings increased 52% year-over-year to $861.8 million as of\nJune 30, 2026, compared to $568.4 million as of June 30, 2025.\n\n * Number of clients increased 24% year-over-year to 2,929 clients as of June 30,\n2026, compared to 2,359 clients as of June 30, 2025.\n\n * Signed a definitive agreement to acquire Cylinder Health, Inc., a leader in\nvirtual-first digestive healthcare, for $105 million in cash consideration.\nThe acquisition will combine Cylinder Health’s clinical expertise and\nexisting market footprint with Hinge Health’s AI-powered care model and\ntechnology platform to deliver support in a single app with an integrated\nGastrointestinal Care Program, expected to launch in 2027. The transaction is\nsubject to customary closing conditions and is expected to close in the third\nquarter of 2026.\n\nFinancial Outlook:\n\nWe are providing the following guidance for our third quarter 2026 and full\nyear 2026:\n\n\n * Q3 2026: We expect revenue to be between $223 million and $225 million,\nreflecting year-over-year growth of 45% at the midpoint. We expect non-GAAP\nincome from operations to be between $61 million and $63 million, reflecting\nyear-over-year growth of 104% and non-GAAP operating margin of 28% at the\nmidpoint.\n\n * Full Year 2026: We are raising our revenue guidance to be between $856 million\nand $860 million, reflecting year-over-year growth of 46% at the midpoint. We\nare raising our non-GAAP income from operations guidance to be between $236\nmillion and $244 million, reflecting year-over-year growth of 101% and\nnon-GAAP operating margin of 28% at the midpoint.\n\nShare Repurchase Program\n\nOn November 10, 2025, our board of directors approved a share repurchase\nprogram with authorization to purchase up to $250 million of our Class A\ncommon stock. As of July 29, 2026, we had repurchased an aggregate of $196.5\nmillion of our Class A common stock under the program. On July 29, 2026, our\nboard of directors approved an increase to the program, resulting in $300.0\nmillion of our Class A common stock available for future repurchase, for a\ntotal aggregate amount authorized under the program of $496.5 million as of\nsuch date.\n\nRepurchases under the program may be made in the open market, in privately\nnegotiated transactions or by other methods, with the amount, manner, price,\nand timing of repurchases to be determined at our discretion, depending on a\nvariety of factors, including business, economic and market conditions,\nprevailing stock prices, corporate and regulatory requirements, and other\nconsiderations. Open market repurchases will be structured to occur in\naccordance with applicable federal securities laws, including within the\npricing and volume requirements of Rule 10b-18 under the Securities Exchange\nAct of 1934, as amended. We may also, from time to time, enter into Rule\n10b5-1 plans to facilitate repurchases of our shares under this authorization.\nThis program does not obligate us to repurchase any particular dollar amount\nor number of shares of Class A common stock, has no expiration date, and may\nbe modified, suspended or terminated at any time at the discretion of our\nboard of directors. We expect to fund repurchases with existing cash and cash\nequivalents and ongoing cash from operations.\n\nStatement Regarding Use of Non-GAAP Financial Measures\n\nThis press release uses non-GAAP financial measures, which are not calculated\nin accordance with generally accepted accounting principles of the United\nStates (GAAP). For more information about these non-GAAP financial measures,\nincluding the limitations of such measures, and for a reconciliation of each\nmeasure to the most directly comparable measure calculated in accordance with\nGAAP, please see the “Non-GAAP Financial Measures” section below.\n\nMoreover, we have not reconciled our non-GAAP income from operations and\nnon-GAAP operating margin guidance to GAAP income from operations and GAAP\noperating margin because we do not and are not able to provide guidance for\nGAAP income from operations due to the uncertainty and potential variability\nof stock-based compensation expense, employer payroll tax expense related to\nstock-based compensation, amortization of intangible assets and adjustments,\nsuch as acquisition-related expense, which are reconciling items between\nnon-GAAP and GAAP income from operations and operating margin. Because such\nitems cannot be provided without unreasonable efforts, we are unable to\nprovide a reconciliation of the non-GAAP financial measure guidance to the\ncorresponding GAAP measures. However, such items could have a significant\nimpact on our future GAAP income from operations.\n\nHinge Health Earnings Webcast\n\nWe will host a conference call and webcast for investors on August 4, 2026 at\n1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss our financial\nresults, business highlights and financial outlook. The live webcast of the\nconference call can be accessed by registering online at\nir.hingehealth.com/events-presentations\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fir.hingehealth.com%2Fevents-presentations%2F&esheet=54582824&newsitemid=20260804672898&lan=en-US&anchor=ir.hingehealth.com%2Fevents-presentations&index=1&md5=6de15f660a22919a0754634b5505fcc5)\n. Following completion of the event, a webcast replay will also be available\nat ir.hingehealth.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fir.hingehealth.com%2F&esheet=54582824&newsitemid=20260804672898&lan=en-US&anchor=ir.hingehealth.com&index=2&md5=5ef9509b1d4075efad3d629227d7cc9b)\nfor 12 months.\n\nAbout Hinge Health\n\nHinge Health is focused on scaling and automating the delivery of health care.\nLeveraging an AI-powered care model, connected hardware and access to expert\nclinicians, Hinge Health delivers personalized, evidence-based care that\nimproves member outcomes and experiences while reducing costs for clients. The\ncompany is headquartered in San Francisco, California.\n\nAvailable Information\n\nOur investors and others should note that we announce material information to\nthe public about our company, products and services, and other matters related\nto our company through a variety of means, including filings with the U.S.\nSecurities and Exchange Commission (“SEC”), the investor relations page on\nour website (ir.hingehealth.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fir.hingehealth.com%2F&esheet=54582824&newsitemid=20260804672898&lan=en-US&anchor=ir.hingehealth.com&index=3&md5=74ca0e94e900579379ec0be672f85c83)\n), press releases, public conference calls, and webcasts in order to achieve\nbroad, non-exclusionary distribution of information to the public and to\ncomply with our obligations under Regulation FD.\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nSection 27A of the Securities Act of 1933, as amended, Section 21E of the\nSecurities Exchange Act of 1934, as amended, and the Private Securities\nLitigation Reform Act of 1995. All statements other than statements of\nhistorical facts contained in this press release may be forward-looking\nstatements. Forward-looking statements generally relate to future events or\nour future financial or operating performance. In some cases, you can identify\nforward-looking statements because they contain words such as\n“anticipate,” “believe,” “contemplate,” “continue,”\n“could,” “estimate,” “expect,” “intend,” “may,”\n“plan,” “potential,” “predict,” “project,” “should,”\n“target,” or “will,” or the negative of these words or other similar\nterms or expressions that concern our expectations, strategy, plans or\nintentions. Forward-looking statements in this release include, but are not\nlimited to, statements regarding our proposed acquisition of Cylinder Health\nand the timing and anticipated benefits and synergies associated with the\nacquisition, statements regarding our expectations regarding our financial\nposition and operating performance, including our outlook and guidance for the\nthird quarter of 2026 and guidance for full year 2026 and our assumptions\nunderlying such guidance; expectations regarding our share repurchase program;\nour ability to drive future growth and execute on our goals and strategies;\nand our expectations regarding our product innovation. Our expectations and\nbeliefs regarding these matters may not materialize, and actual results in\nfuture periods are subject to risks and uncertainties that could cause actual\nresults to differ materially from those projected, including those more fully\ndescribed in our filings with the SEC, including in our Annual Report on Form\n10-K for the year ended December 31, 2025, filed with the SEC on March 3, 2026\nand in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026,\nwhen filed with the SEC. The forward-looking statements in this press release\nare based on information available to us as of the date hereof, and we\ndisclaim any obligations to update any forward-looking statements, except as\nrequired by law.\n HINGE HEALTH, INC. \n CONDENSED CONSOLIDATED BALANCE SHEETS \n (unaudited) \n (in thousands, except par value data) \n   \n     June 30, 2026   December 31, 2025 \n Assets         \n Current assets:         \n Cash and cash equivalents   $ 286,224     $ 207,995   \n Short-term marketable securities     103,167       155,867   \n Accounts receivable, net of allowance for credit losses of $6,706 and $6,092     125,432       66,061   \n as of June 30, 2026 and December 31, 2025, respectively \n Deferred commissions     43,440       31,344   \n Inventory     16,769       15,636   \n Prepaid expenses and other current assets     68,321       57,001   \n Total current assets     643,353       533,904   \n Long-term marketable securities     84,742       113,172   \n Goodwill     64,096       64,096   \n Intangible assets, net     2,063       2,512   \n Property, equipment and software, net     12,745       10,490   \n Operating lease right-of-use assets     5,027       6,861   \n Other assets     15,372       13,726   \n Total assets   $ 827,398     $ 744,761   \n Liabilities, redeemable convertible preferred stock and stockholders’ equity         \n Current liabilities:         \n Accounts payable and accrued liabilities   $ 60,719     $ 57,331   \n Operating lease liabilities     4,254       4,223   \n Deferred revenue     416,466       300,855   \n Total current liabilities     481,439       362,409   \n Operating lease liabilities, noncurrent     1,631       3,816   \n Total liabilities     483,070       366,225   \n Redeemable convertible preferred stock:         \n Redeemable convertible preferred stock; $0.00001 par value     —       199,874   \n Stockholders’ equity:         \n Class A common stock, $0.00001 par value     —       —   \n Class B common stock, $0.00001 par value     —       —   \n Additional paid-in capital     1,316,870       1,229,678   \n Accumulated other comprehensive loss     (364 )     (20 ) \n Accumulated deficit     (972,178 )     (1,050,996 ) \n Total stockholders’ equity     344,328       178,662   \n Total liabilities, redeemable convertible preferred stock and stockholders’   $ 827,398     $ 744,761   \n equity \n\n HINGE HEALTH, INC. \n CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS \n (unaudited) \n (in thousands, except per share data) \n   \n     Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n Revenue   $ 212,817     $ 139,098     $ 395,124     $ 262,923   \n Cost of revenue     28,868       41,335       56,942       64,927   \n Gross profit     183,949       97,763       338,182       197,996   \n Operating expenses:                 \n Research and development     34,057       279,962       64,395       303,462   \n Sales and marketing     81,408       147,228       150,210       193,944   \n General and administrative     28,044       251,244       51,068       268,125   \n Total operating expenses     143,509       678,434       265,673       765,531   \n Income (loss) from operations     40,440       (580,671 )     72,509       (567,535 ) \n Other income:                 \n Other income, net     3,990       4,694       7,863       9,695   \n Net income (loss) before income taxes     44,430       (575,977 )     80,372       (557,840 ) \n Provision for (benefit from) income taxes     740       (326 )     1,554       672   \n Net income (loss)   $ 43,690     $ (575,651 )   $ 78,818     $ (558,512 ) \n Adjustment to reflect deemed contribution from Series D and Series E     —       —       —       104,174   \n redeemable convertible preferred stock extinguishment \n Income allocated to participating securities     (588 )     —       (1,784 )     —   \n Net income (loss) attributable to common stockholders, basic   $ 43,102     $ (575,651 )   $ 77,034     $ (454,338 ) \n Net income (loss) attributable to common stockholders, diluted   $ 43,133     $ (575,651 )   $ 77,109     $ (454,338 ) \n Net income (loss) attributable to common stockholders per share:                 \n Basic   $ 0.55     $ (13.10 )   $ 0.98     $ (15.05 ) \n Diluted   $ 0.52     $ (13.10 )   $ 0.94     $ (15.05 ) \n Weighted average shares used in computing net income (loss) per share                 \n attributable to common stockholders: \n Basic     78,969       43,931       78,795       30,190   \n Diluted     83,424       43,931       82,344       30,190   \n\n HINGE HEALTH, INC. \n CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS \n (unaudited) \n (in thousands) \n   \n     Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n Operating activities:                 \n Net income (loss)   $ 43,690     $ (575,651 )   $ 78,818     $ (558,512 ) \n Adjustments to reconcile net income (loss) to net cash provided by (used in)                 \n operating activities: \n Depreciation and amortization     1,061       1,343       2,234       2,646   \n Stock-based compensation     19,092       590,983       30,784       590,990   \n Amortization of deferred commissions     19,085       10,680       35,290       19,870   \n Accretion of discounts and amortization of premiums on marketable securities,     569       277       704       326   \n net \n Non-cash operating lease expense     929       843       1,834       1,688   \n Provision for credit losses     1,613       1,894       1,613       2,780   \n Deferred income taxes     13       90       13       96   \n Other     (1 )     2       (1 )     (2 ) \n Changes in operating assets and liabilities:                 \n Accounts receivable     (12,124 )     (25,304 )     (60,984 )     (59,584 ) \n Deferred commissions     (28,476 )     (17,020 )     (49,079 )     (27,650 ) \n Inventory     (2,602 )     (1,202 )     (1,132 )     (3,114 ) \n Prepaid expenses and other current assets     (7,730 )     (14,743 )     (11,320 )     (6,609 ) \n Other assets     331       (211 )     (327 )     (485 ) \n Accounts payable and accrued liabilities     (8,654 )     (8,713 )     2,592       6,997   \n Operating lease liabilities     (1,084 )     (851 )     (2,154 )     (1,792 ) \n Deferred revenue     75,701       57,810       115,611       57,505   \n Net cash provided by operating activities     101,413       20,227       144,496       25,150   \n Investing activities:                 \n Purchase of property and equipment     (123 )     (197 )     (206 )     (248 ) \n Capitalized internal use software     (1,731 )     (1,630 )     (3,178 )     (2,336 ) \n Purchases of marketable securities     (30,921 )     (85,110 )     (89,877 )     (175,282 ) \n Maturities of marketable securities     61,393       90,958       169,960       164,556   \n Acquisition of a business     —       —       —       (4,000 ) \n Net cash provided by (used in) investing activities     28,618       4,021       76,699       (17,310 ) \n Financing activities:                 \n Proceeds from exercise of common stock options     270       159       680       256   \n Issuance of common stock in connection with the employee stock purchase plan     7,276       —       7,276       —   \n Proceeds from issuance of common stock in initial public offering, net of     —       255,675       —       255,675   \n issuance costs \n Repurchase and retirement of common stock     (26,525 )     —       (131,491 )     —   \n Tax withholdings on settlement of restricted stock units and performance-based     (11,499 )     (272,258 )     (19,791 )     (272,258 ) \n restricted stock units \n Payment on Repurchase Agreement with Coatue     —       (50,000 )     —       (50,000 ) \n Proceeds from repayment of non-recourse loans to employees     —       —       —       4,934   \n Payments for deferred offering costs     —       (9,134 )     —       (10,061 ) \n Net cash used in financing activities     (30,478 )     (75,558 )     (143,326 )     (71,454 ) \n Net increase (decrease) in cash, cash equivalents and restricted cash     99,553       (51,310 )     77,869       (63,614 ) \n Cash, cash equivalents, and restricted cash, beginning of period     188,112       290,282       209,796       302,586   \n Cash, cash equivalents, and restricted cash, end of period   $ 287,665     $ 238,972     $ 287,665     $ 238,972   \n Reconciliation of cash, cash equivalents, and restricted cash to the unaudited                 \n condensed consolidated balance sheets: \n Cash and cash equivalents   $ 286,224     $ 237,170     $ 286,224     $ 237,170   \n Restricted cash     1,441       1,802       1,441       1,802   \n Total cash, cash equivalents, and restricted cash   $ 287,665     $ 238,972     $ 287,665     $ 238,972   \n\n\nGlossary of Terms\n\nLTM Calculated Billings: We believe calculated billings on a last 12-months\nbasis helps investors better understand our performance for a particular\nperiod given the seasonality in our model due to quarterly fluctuations based\non the timing of new client launches. We anticipate that this seasonality will\ncontinue and therefore focus on LTM calculated billings. Our revenue generally\ndoes not reflect this seasonality and these quarterly fluctuations given that\nwe recognize revenue ratably over the term that members have access to our\nplatform. LTM calculated billings are defined as total revenue, plus the\nchange in deferred revenue, less the change in contract assets for a given\n12-month period.\n\nClients: We view this number as an important metric to assess the performance\nof our business as an increased number of clients drives growth, increases\nbrand awareness, and helps provide scale to our business. Clients are defined\nas businesses or organizations, which we call entities, that have at least one\nactive agreement with us at the end of a particular period. Entities that\nprocure our platform through our partners are counted as individual clients.\nWe do not count our partners as clients, unless they also separately have at\nleast one active client agreement with us. When a partner has an agreement\nwith us for their fully-insured population, that partner is deemed to be one\nclient, despite there being multiple fully-insured employers within that\nentity that have access to our platform.\n\nNon-GAAP Financial Measures\n\nIn addition to our results prepared in accordance with GAAP, we believe the\nfollowing non-GAAP financial measures, including non-GAAP gross profit and\ngross margin, non-GAAP income from operations and operating margin, non-GAAP\noperating expenses, non-GAAP net income attributable to common stockholders,\ndiluted, non-GAAP net income per share attributable to common stockholders,\ndiluted (which we refer to as \"non-GAAP diluted net income per share\") and\nfree cash flow and free cash flow margin included in this press release,\nprovide users of our financial information with additional useful information\nin evaluating our performance and liquidity and allows them to more readily\ncompare our results across periods without the effect of non-cash and other\nitems as detailed below. Additionally, our management and board of directors\nuse our non-GAAP financial measures to evaluate our performance and liquidity,\nidentify trends and make strategic decisions.\n\nThere are limitations to the use of the non-GAAP financial measures presented\nin this press release. For example, our non-GAAP financial measures may not be\ncomparable to similarly titled measures of other companies. Other companies,\nincluding companies in our industry, may calculate non-GAAP financial measures\ndifferently than we do, limiting the usefulness of those measures for\ncomparative purposes. Our non-GAAP financial measures should not be considered\nin isolation or as alternatives to gross profit, gross margin, income from\noperations, net income attributable to common stockholders, net income per\nshare attributable to common stockholders, net cash provided by operating\nactivities or any other measure of financial performance calculated and\npresented in accordance with GAAP.\n\nNon-GAAP Gross Profit and Gross Margin\n\nWe define non-GAAP gross profit as gross profit presented in accordance with\nGAAP, adjusted to exclude non-cash, non-operational and non-recurring items,\nincluding stock-based compensation expense, employer payroll tax expense\nrelated to stock-based compensation, and amortization of intangible assets. We\ndefine non-GAAP gross margin as non-GAAP gross profit divided by revenue.\n\nThe principal limitation of non-GAAP gross profit and non-GAAP gross margin is\nthat they exclude significant expenses that are required by GAAP to be\nrecorded in our unaudited condensed consolidated financial statements,\nincluding non-cash expenses, and the impact of non-recurring charges that we\ndo not consider to be indicative of our ongoing core operations.\n\nNon-GAAP Income From Operations and Operating Margin\n\nWe define non-GAAP income from operations as income (loss) from operations\npresented in accordance with GAAP, adjusted to exclude non-cash,\nnon-operational and non-recurring items, including stock-based compensation\nexpense, employer payroll tax expense related to stock-based compensation,\namortization of intangible assets and acquisition-related expenses. We define\nnon-GAAP operating margin as non-GAAP income from operations divided by\nrevenue.\n\nThe principal limitation of non-GAAP income from operations and non-GAAP\noperating margin is that they exclude significant expenses that are required\nby GAAP to be recorded in our unaudited condensed consolidated financial\nstatements, including non-cash expenses, and the impact of non-recurring\ncharges that we do not consider to be indicative of our ongoing core\noperations.\n\nNon-GAAP Operating Expenses\n\nWe define non-GAAP operating expenses as operating expenses presented in\naccordance with GAAP, adjusted to exclude non-cash, non-operational and\nnon-recurring items, including stock-based compensation expense, employer\npayroll tax expense related to stock-based compensation, amortization of\nintangible assets and acquisition-related expenses.\n\nThe principal limitation of non-GAAP research and development expenses,\nnon-GAAP sales and marketing expenses and non-GAAP general and administrative\nexpenses is that they exclude significant expenses that are required by GAAP\nto be recorded in our unaudited condensed consolidated financial statements,\nincluding non-cash expenses, and the impact of non-recurring charges that we\ndo not consider to be indicative of our ongoing core operations.\n\nNon-GAAP Net Income Attributable to Common Stockholders, Diluted and Non-GAAP\nNet Income Per Share Attributable to Common Stockholders, Diluted\n\nWe define non-GAAP net income attributable to common stockholders, diluted and\nnon-GAAP net income per share attributable to common stockholders, diluted\n(which we refer to as “non-GAAP diluted net income per share”) as GAAP net\nincome attributable to common stockholders and GAAP net income per share\nattributable to common stockholders, diluted, respectively, adjusted to\nexclude non-cash, non-operational and non-recurring items, including\nstock-based compensation, employer payroll taxes related to stock-based\ncompensation, amortization of intangible assets, acquisition-related expenses\nand the income tax effects related to non-GAAP adjustments.\n\nFree Cash Flow and Free Cash Flow Margin\n\nWe define free cash flow as net cash provided by operating activities plus\ncash used for employer payroll taxes at IPO related to stock-based\ncompensation less purchases of property, equipment and software (including\ncapitalized internal-use software). We believe that free cash flow is a\nhelpful indicator of liquidity that provides information to management and\ninvestors about the amount of cash generated or used by our operations that,\nafter taking into account the employer payroll taxes paid as part of the\nvesting of shares at IPO as well as investments in property, equipment and\nsoftware (including capitalized internal-use software), can be used for\nstrategic initiatives, including investing in our business and strengthening\nour financial position. The principal limitation of free cash flow is that it\ndoes not represent the total increase or decrease in our cash balance for a\ngiven period. We define free cash flow margin as free cash flow divided by\nrevenue.\n\nWe adjust the following items from one or more of our non-GAAP financial\nmeasures:\n\nStock-based compensation expense. We exclude stock-based compensation expense,\nwhich is a non-cash expense, from certain of our non-GAAP financial measures\nbecause we believe that excluding this item provides meaningful supplemental\ninformation regarding our operating performance.\n\nEmployer payroll tax expense related to stock-based compensation. We exclude\nexpenses for employer payroll taxes related to stock-based compensation from\ncertain of our non-GAAP financial measures because we believe that excluding\nthis item provides meaningful supplemental information regarding operational\nperformance. In particular, this expense is tied to the exercise, vesting or\nsale of underlying equity awards and the price of our common stock at the time\nof exercise, vesting or sale which may vary from period to period independent\nof the operating performance of our business.\n\nAmortization of intangible assets. We exclude amortization of intangible\nassets, which is a non-cash expense, from certain of our non-GAAP financial\nmeasures. Our expenses for amortization of intangible assets are inconsistent\nin amount and frequency because they are significantly affected by the timing,\nsize of acquisitions and the inherent subjective nature of purchase price\nallocations. We exclude these amortization expenses because we do not believe\nthese expenses have a direct correlation to the operating performance of our\nbusiness.\n\nAcquisition-related expenses. We exclude certain charges that are attributable\nto acquiring businesses. We exclude these charges because we do not believe\nthese charges have a direct correlation to the operating performance of our\nbusiness.\n\nIncome tax effect of non-GAAP adjustments. We exclude the valuation allowance\nthat is attributable to our non-GAAP income beginning in 2025. For the three\nand six months ended June 30, 2026 we used a forecasted annual tax rate of 24%\nand for the three and six months ended June 30, 2025 we used an annual tax\nrate of 20%. These tax rates reflect current available information, as well as\nother factors and assumptions. We will periodically re-evaluate this tax rate,\nas necessary, for significant events, relevant tax law changes, material\nchanges in the forecasted geographic earnings mix, and any significant\ntransactions.\n HINGE HEALTH, INC. \n (unaudited) \n (in thousands, except percentages) \n   \n Reconciliation of GAAP to Non-GAAP Financial Measures: \n     Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n GAAP gross profit   $ 183,949     $ 97,763     $ 338,182     $ 197,996   \n GAAP gross margin     86 %     70 %     86 %     75 % \n Non-GAAP adjustments:                 \n Stock-based compensation expense ((1))     1,128       16,441       1,965       16,441   \n Employer payroll tax expense related to stock-based compensation     45       893       150       893   \n Amortization of intangible assets     224       225       449       406   \n Non-GAAP gross profit   $ 185,346     $ 115,322     $ 340,746     $ 215,736   \n Non-GAAP gross margin     87 %     83 %     86 %     82 % \n   \n     Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n GAAP income (loss) from operations   $ 40,440     $ (580,671 )   $ 72,509     $ (567,535 ) \n GAAP operating margin     19 %     (417 )%     19 %     (216 )% \n Non-GAAP adjustments:                 \n Stock-based compensation expense ((1))     19,092       590,983       30,784       590,990   \n Employer payroll tax expense related to stock-based compensation     1,316       14,227       2,800       14,227   \n Amortization of intangible assets     224       225       449       406   \n Acquisition-related expenses     440       1,337       1,134       2,968   \n Non-GAAP income from operations   $ 61,512     $ 26,101     $ 107,676     $ 41,056   \n Non-GAAP operating margin     29 %     19 %     27 %     16 % \n\n (1)   Stock-based compensation expense: \n\n   Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n Cost of revenue   $ 1,128   $ 16,441   $ 1,965   $ 16,441 \n Research and development     7,118     248,809     10,551     248,809 \n Sales and marketing     5,965     95,050     9,969     95,050 \n General and administrative     4,881     230,683     8,299     230,690 \n Total stock-based compensation expense   $ 19,092   $ 590,983   $ 30,784   $ 590,990 \n\n HINGE HEALTH, INC. \n (unaudited) \n (in thousands, except per share amounts) \n   \n     Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n GAAP net income (loss) attributable to common stockholders, diluted   $ 43,133     $ (575,651 )   $ 77,109     $ (454,338 ) \n Non-GAAP adjustments:                 \n Stock-based compensation expense ((1))     19,092       590,983       30,784       590,990   \n Employer payroll tax expense related to stock-based compensation     1,316       14,227       2,800       14,227   \n Amortization of intangible assets     224       225       449       406   \n Acquisition-related expenses     440       1,337       1,134       2,968   \n Income tax effect of non-GAAP adjustments     (14,980 )     (6,484 )     (26,176 )     (9,477 ) \n Other dilutive     (78 )     (8,568 )     (195 )     (69,427 ) \n Non-GAAP net income attributable to common stockholders, diluted   $ 49,147     $ 16,069     $ 85,905     $ 75,349   \n                   \n Non-GAAP net income attributable to common stockholders per share, diluted   $ 0.59     $ 0.30     $ 1.04     $ 1.80   \n                   \n Weighted average shares used in computing non-GAAP net income per share     83,424       52,735       82,344       41,908   \n attributable to common stockholders, diluted \n   \n     Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n GAAP net income (loss) per share attributable to common stockholders, diluted   $ 0.52     $ (13.10 )   $ 0.94     $ (15.05 ) \n Non-GAAP adjustments:                 \n Stock-based compensation expense ((1))     0.22       11.21       0.37       14.10   \n Employer payroll tax expense related to stock-based compensation     0.02       0.27       0.03       0.34   \n Amortization of intangible assets     —       —       0.01       0.01   \n Acquisition-related expenses     0.01       0.03       0.01       0.07   \n Income tax effect of non-GAAP adjustments     (0.18 )     (0.12 )     (0.32 )     (0.23 ) \n Other dilutive     —       2.01       —       2.56   \n Non-GAAP net income per share attributable to common stockholders, diluted   $ 0.59     $ 0.30     $ 1.04     $ 1.80   \n ((2)) \n\n (1)   For details on stock-based compensation expense, see above. \n (2)   Some columns may not add due to rounding. \n\n HINGE HEALTH, INC. \n (unaudited) \n (in thousands, except percentages) \n   \n     Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n GAAP research and development   $ 34,057     $ 279,962     $ 64,395     $ 303,462   \n GAAP research and development as a percentage of revenue     16 %     201 %     16 %     115 % \n Non-GAAP adjustments:                 \n Stock-based compensation expense ((1))     (7,118 )     (248,809 )     (10,551 )     (248,809 ) \n Employer payroll tax expense related to stock-based compensation     (591 )     (7,020 )     (1,263 )     (7,020 ) \n Acquisition-related expenses     (440 )     (1,358 )     (1,134 )     (2,816 ) \n Non-GAAP research and development   $ 25,908     $ 22,775     $ 51,447     $ 44,817   \n Non-GAAP research and development as a percentage of revenue     12 %     16 %     13 %     17 % \n   \n   Three Months Ended June 30, Six Months Ended June 30, \n     2026   2025   2026   2025 \n GAAP sales and marketing   $ 81,408     $ 147,228     $ 150,210     $ 193,944   \n GAAP sales and marketing as a percentage of revenue     38 %     106 %     38 %     74 % \n Non-GAAP adjustments:                 \n Stock-based compensation expense ((1))     (5,965 )     (95,050 )     (9,969 )     (95,050 ) \n Employer payroll tax expense related to stock-based compensation     (372 )     (2,630 )     (781 )     (2,630 ) \n Non-GAAP sales and marketing   $ 75,071     $ 49,548     $ 139,460     $ 96,264   \n Non-GAAP sales and marketing as a percentage of revenue     35 %     36 %     35 %     37 % \n   \n     Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n GAAP general and administrative   $ 28,044     $ 251,244     $ 51,068     $ 268,125   \n GAAP general and administrative as a percentage of revenue     13 %     180 %     13 %     102 % \n Non-GAAP adjustments:                 \n Stock-based compensation expense ((1))     (4,881 )     (230,683 )     (8,299 )     (230,690 ) \n Employer payroll tax expense related to stock-based compensation     (308 )     (3,684 )     (606 )     (3,684 ) \n Acquisition-related expenses     —       21       —       (152 ) \n Non-GAAP general and administrative   $ 22,855     $ 16,898     $ 42,163     $ 33,599   \n Non-GAAP general and administrative as a percentage of revenue     11 %     12 %     11 %     13 % \n\n (1)   For details on stock-based compensation expense, see above. \n\n HINGE HEALTH, INC. \n (unaudited) \n (in thousands, except percentages) \n   \n   Three Months Ended June 30,   Six Months Ended June 30, \n     2026   2025   2026   2025 \n Net cash provided by operating activities   $ 101,413     $ 20,227     $ 144,496     $ 25,150   \n Operating cash flow margin     48 %     15 %     37 %     10 % \n Adjustment for employer taxes related to pre-IPO stock-based compensation     —       14,227       —       14,227   \n Less purchases of property, equipment and software (including capitalized     (1,854 )     (1,827 )     (3,384 )     (2,584 ) \n internal use software) \n Free cash flow   $ 99,559     $ 32,627     $ 141,112     $ 36,793   \n Free cash flow margin     47 %     23 %     36 %     14 % \n Net cash provided by (used in) investing activities   $ 28,618     $ 4,021     $ 76,699     $ (17,310 ) \n Net cash used in financing activities   $ (30,478 )   $ (75,558 )   $ (143,326 )   $ (71,454 ) \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260804672898/en/\n(https://www.businesswire.com/news/home/20260804672898/en/)\n\nInvestor Relations Contact: \n\nir@hingehealth.com (mailto:ir@hingehealth.com)\n\nMedia Contact: \n\nmedia@hingehealth.com (mailto:media@hingehealth.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-08-04T20:05:01.096713926Z","server_sent_at_ms":1785873901096},"received_at":"2026-08-04T20:05:01.152Z","source_url":"https://www.businesswire.com/news/home/20260804672898/en/"},"analysis":{"id":"97530","press_release_id":"108525","analysis_json":{"industry":{"label":"Health Care Technology","sector":"Health Care"},"redFlags":[],"eventType":"earnings","narrative":"Hinge Health delivered Q2 revenue of $213 million, up 53% 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