Hinge Health, Inc. Class A (HNGE) AI Stock Analysis

• Market Cap: $3.86B
• Dividend Yield: N/A
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.85
• Revenue Growth: 50.67%
• EPS Growth: -578.00%
• Country: US
• Employees: 1,514
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.42
• Shares Outstanding: 37,919,155
• 10 Day Avg. Volume: 1,602,615
• 30 Day Avg. Volume: 2,151,672
• PEG Ratio: 2.75
• Price to Book (P/B): 7.03
• Price to Sales (P/S): 7.51
• P/FCF Ratio: 64.79
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 8.61
• Enterprise Value/Gross Profit: 11.08
• Enterprise Value/Ebitda: -6.47
• 1Y Price Target: $67.53
• Price Target Upside: 35.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $54.00 ▲(8.67% Upside)

Hinge Health, Inc. demonstrates strong business momentum with significant revenue growth and operational improvements, as highlighted in the earnings call. The stable financial position and effective cost control are positive, but ongoing profitability challenges and valuation concerns weigh on the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Hinge Health's solutions, enhancing its market position and supporting long-term expansion.

Operational Efficiency

Improved operational efficiency and higher margins suggest effective cost management, which can lead to better profitability over time.

AI and Innovation

AI-driven innovations enhance service delivery and engagement, potentially leading to sustained competitive advantage and improved client outcomes.

Negative Factors

Profitability Challenges

Ongoing unprofitability may hinder long-term financial health, requiring continued focus on cost control and revenue optimization.

Seasonal Slowdown

Expected seasonal slowdown could impact short-term revenue growth, necessitating strategic adjustments to maintain momentum.

Impact of Federal Shutdown

Potential disruption from a federal shutdown could affect operations and client engagements, posing risks to business continuity.

Hinge Health, Inc. Class A Business Overview & Revenue Model

Company Description

Hinge Health, Inc. develops health care software for joint and muscle health. The company designs its platform to address a musculoskeletal care, acute injury, chronic pain, and post-surgical rehabilitation. It also provides various administrative and operations support services. The company was founded in 2012 and is headquartered in San Francisco, California.

How the Company Makes Money

Hinge Health generates revenue primarily through partnerships with health plans and employers, who pay for access to its digital health solutions as part of their employee health benefits programs. The company's revenue model is based on a subscription fee structure, where clients pay for the services provided to their members. Key revenue streams include contracts with large employers and health systems that integrate Hinge Health's programs into their offerings to improve employee health outcomes and reduce healthcare costs. Additionally, Hinge Health may benefit from performance-based incentives tied to improved health metrics and outcomes for users, further enhancing its revenue potential.

Hinge Health, Inc. Class A Financial Statement Overview

Summary

Hinge Health, Inc. demonstrates strong revenue growth and effective cost control, evidenced by a high gross profit margin. The balance sheet is stable with low leverage, but profitability remains a challenge. Cash flow improvements are promising, but sustained positive net income will be crucial for long-term success.

Income Statement

Hinge Health, Inc. has shown a significant improvement in revenue, with a growth rate of 33.33% over the past year. The gross profit margin is strong at 76.80%, indicating effective cost management. However, the company remains unprofitable with a net profit margin of -3.06% and negative EBIT and EBITDA margins, reflecting continued operational challenges.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.03, suggesting low leverage and financial stability. The equity ratio is 61.91%, indicating a strong capital structure. However, the return on equity is negative at -2.86% due to ongoing losses, which is a concern for investors seeking profitability.

Cash Flow

Cash flow has improved markedly with a free cash flow growth rate of 165.99%. The operating cash flow to net income ratio is positive at 4.11, indicating efficient cash generation despite net losses. The free cash flow to net income ratio is also positive at 3.79, reflecting strong cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023
Income Statement
Total Revenue	417.13M	390.40M	292.73M
Gross Profit	324.19M	300.59M	194.18M
EBITDA	-555.57M	-5.31M	-102.92M
Net Income	-560.36M	-11.93M	-108.14M
Balance Sheet
Total Assets	769.80M	673.26M	622.53M
Cash, Cash Equivalents and Short-Term Investments	480.03M	466.57M	423.36M
Total Debt	9.03M	11.07M	15.73M
Total Liabilities	361.93M	256.56M	195.25M
Stockholders Equity	407.87M	416.70M	427.28M
Cash Flow
Free Cash Flow	103.85M	45.23M	-68.52M
Operating Cash Flow	107.55M	49.00M	-63.91M
Investing Cash Flow	-76.07M	18.31M	1.50M
Financing Cash Flow	-70.92M	-2.20M	-3.00M

Hinge Health, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HNGE	70 Outperform	$3.86B	―	―	―	50.67%	-578.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TIVC	43 Neutral	$3.92M	-0.20	-178.18%	―	-49.63%	82.22%
HSCS	40 Underperform	$7.04M	―	-193.24%	―	-66.40%	65.99%
MSPR	38 Underperform	$996.00K	―	―	―	-8.57%	-52.17%
BJDX	29 Underperform	$2.16M	-0.04	-126.20%	―	―	97.70%

Hinge Health, Inc. Class A Corporate Events

Hinge Health Announces $250 Million Share Buyback

On November 12, 2025, Hinge Health, Inc. announced a $250 million share repurchase program, approved by its Board of Directors on November 10, 2025. The program allows for the repurchase of Class A Common Stock through various methods, with the timing and amount at the company’s discretion, funded by existing cash and cash flow. This strategic move reflects the company’s strong financial position, with $108 million in cash from operations and $118 million in free cash flow generated in the first three quarters of 2025, and nearly $500 million in cash and investments by the end of Q3 2025. The initiative aims to offset future dilution and support organic growth, while also exploring targeted mergers and acquisitions.

Hinge Health Reports Strong Q3 2025 Financial Results

On November 4, 2025, Hinge Health announced its financial results for the third quarter of 2025, highlighting a 53% increase in revenue year-over-year to $154.2 million and a significant rise in free cash flow. The company reported surpassing 1.5 million lifetime members and a 25% increase in clients, indicating strong growth and market expansion. Despite a GAAP loss from operations, the non-GAAP income from operations showed a substantial improvement. The company also provided an optimistic financial outlook for the fourth quarter and full year of 2025, projecting continued revenue growth and increased non-GAAP income from operations.