Hinge Health (HNGE) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $182.3 million, up 47% year-over-year, surpassing expectations and driven by platform automation, AI, and improved member outcomes.

• Net income increased to $35.1 million, with non-GAAP income from operations at $46.2 million (25% margin), and free cash flow at $42 million (23% margin).

• Launched Migraine Care Program, expanding beyond MSK care, with over 2 million eligible lives and 125 clients signed up within weeks.

• Client base grew to 2,849 as of March 31, 2026, with robust engagement in both SMB and enterprise segments.

• AI-powered care delivery and proprietary technology platforms drove operational scalability and reduced care team hours by 97% compared to traditional physical therapy.

Financial highlights

• Gross margin improved to 85% from 81% in Q1 2025; operating margin rose to 25% (non-GAAP) and 18% (GAAP).

• Free cash flow was $42 million (23% margin), up 10x year-over-year.

• Diluted EPS was $0.45 (non-GAAP) and $0.41 (GAAP) for Q1 2026.

• LTM calculated billings reached $770 million, up 52% year-over-year.

• Ended Q1 with $407 million in cash, cash equivalents, and marketable securities.

Outlook and guidance

• Q2 2026 revenue expected at $194–$196 million (40% YoY growth at midpoint); operating income $47–$49 million (25% margin).

• Full-year 2026 revenue guidance raised to $798–$804 million (36% YoY growth at midpoint); operating income guidance raised to $205–$215 million (26% margin).

• Guidance increase driven by higher eligible lives and improved yield.

• Management expects continued revenue growth from client expansion, member engagement, and product innovation.

• Seasonality in billings expected, with highest free cash flow in Q2 and Q3.