Hinge Health, Inc.

Q2 revenue was $213 million, up 53% year over year from $139 million in Q2 2025. LTM calculated billings were $862 million, up 52% year over year from $568 million. Gross margin was 87%, up from 83% last year. Operating income was $62 million, above guidance, and operating margin was 29% versus 19% a year ago. Free cash flow was $100 million, up from $33 million, with a 47% margin versus 23% last year. Diluted net income per share attributable to common shareholders was $0.59. For Q3 2026, management guided to revenue of $223 million-$225 million and operating income of $61 million-$63 million. For full-year 2026, revenue guidance rose to $856 million-$860 million and operating income guidance to $236 million-$244 million. The company expects yield of about 4.45% for 2026. Cylinder Health is expected to contribute about $7 million-$8 million of revenue in the remaining roughly four months of 2026, and the $105 million cash acquisition is expected to close later this quarter.

Dan Perez said the quarter validated Hinge Health’s vision of automating care delivery, highlighting strong financial execution, product expansion and growing durability of the platform. He emphasized that the company is moving from a leader in MSK into multi-condition care, with Migraine already gaining traction and GI positioned as the next major adjacency. His tone was confident and expansive, framing multi-product as both a growth driver and a moat.

James Budge highlighted durable yield improvements as the main driver of the revenue beat and the full-year raise, saying lives and ASP were in line with prior expectations while yield came in stronger. He noted gross margin of 87% benefited from care team efficiency and about a 100 basis point tariff refund, while operating expenses fell to 58% of revenue from 64% a year ago. He also pointed to $476 million of cash and equivalents, $26 million of share repurchases in Q2, a new $300 million buyback authorization, and guidance for 85 million-87 million diluted shares at year-end.

Analysts pressed management on the GI strategy, asking how replicable the core model is and whether GI needs more live or in-person support. Management said Cylinder is highly analogous to Hinge’s existing model, shares many partners and customers, and gives Hinge an 18-24 month head start; they described GI as AI-led but paired with specialist access and said broader rollout is targeted for 2027. Questions also focused on competition, sell-through timing and yield. Management said win rates are at an all-time high, pipeline is ahead of last year, 70%+ of employer decisions are typically made in the second half of Q3 through the first half of Q4, and the raise in yield is broad-based across existing and new clients.