Hinge Health — Q3 2026 Earnings Summary

Financial Performance:

• Revenue increased 52% year-over-year to $235.0 million in Q3 2026, compared to $154.2 million in Q3 2025.
• GAAP gross margin improved to 87% in Q3 2026 from 82% in Q3 2025; Non-GAAP gross margin was 88% compared to 83% in Q3 2025.
• GAAP income from operations turned positive at $50.3 million in Q3 2026, versus a loss of $6.1 million in Q3 2025.
• Non-GAAP income from operations increased 154% to $77.2 million in Q3 2026, compared to $30.4 million in Q3 2025.
• GAAP operating margin was 21% in Q3 2026 compared to (4)% in Q3 2025; Non-GAAP operating margin was 33% compared to 20% in Q3 2025.
• GAAP diluted net income per share was $0.66 in Q3 2026, compared to a loss of $0.02 in Q3 2025. Non-GAAP diluted net income per share was $0.71 compared to $0.32 in Q3 2025.
• Net cash provided by operating activities increased to $114.6 million in Q3 2026 from $82.4 million in Q3 2025.
• Free cash flow increased to $112.7 million in Q3 2026 from $81.3 million in Q3 2025, representing a 48% free cash flow margin.
• Cash, cash equivalents, marketable securities, and restricted cash totaled $358.5 million as of September 30, 2026.
• LTM calculated billings increased 54% year-over-year to $960.3 million as of September 30, 2026, compared to $624.2 million in 2025.
• The number of clients increased 28% year-over-year to 3,270 as of September 30, 2026, compared to 2,560 in 2025.

Guidance and Future Outlook:

• Full-year 2026 revenue guidance was raised to a midpoint of $880 million, reflecting 50% year-over-year growth.
• Full-year 2026 non-GAAP operating margin guidance was raised to a midpoint of 30%, reflecting a ~1,000 basis point improvement year-over-year.
• Q4 2026 revenue guidance is set between $249 million and $251 million, reflecting 46% year-over-year growth at the midpoint.
• Q4 2026 non-GAAP income from operations guidance is between $81 million and $83 million, reflecting 71% year-over-year growth and a 33% non-GAAP operating margin.
• The company anticipates the launch of its integrated Gastrointestinal Care Program in 2027.

Business Segments and Product Lines:

• Client base for the MSK Care Program increased almost 30% year-over-year.
• Client base for the GI Care Program increased roughly 40% year-over-year following the acquisition announcement of Cylinder Health in August.
• Client base for the Migraine Care Program nearly doubled since the previous quarter.

Management Commentary and Tone:

• CEO Daniel Perez stated that performance reflects the ability to deliver exceptional clinical outcomes, a better healthcare experience, and lower client costs at scale.
• Management highlighted a "record sales season" driven by a technology platform that scales and automates care delivery.
• CEO Daniel Perez expressed gratitude to outgoing President Jim Pursley, crediting him with instrumental scaling to over 3,200 clients.

Other Key Points:

• Jim Pursley will step down as President effective January 1, 2027, and will join the Board of Directors effective January 4, 2027.
• Aaryn Pure will lead the commercial organization as Chief Commercial Officer following the leadership transition.
• The company announced the acquisition of Cylinder Health in August 2026.
• The company is unable to provide GAAP income from operations guidance due to the uncertainty and variability of stock-based compensation, employer payroll tax expense, amortization of intangible assets, and acquisition-related expenses.
• The company hosts a conference call and webcast for investors on November 2, 2026, at 1:30 p.m. Pacific Time.