Hinge Health Raises 2026 Revenue Forecast to $881 Million as Third-Quarter Growth Hits 52%
Key Facts
Hinge Health on November 2 raised its 2026 revenue forecast to a range of $879 million to $881 million, equivalent to 50% annual growth at the midpoint, after quarterly results showed continued business expansion and improved profitability. The company said in its earnings release that the new guidance reflects annual growth at the midpoint, while its previous range was $856 million to $860 million, according to the earnings-call transcript. The raised forecast came alongside third-quarter revenue of $235.0 million, up 52% from $154.2 million in the same period of 2025. The chief financial officer said revenue above the previous guidance was driven entirely by billing performance, and that billing outperformance in turn came from a higher conversion rate to members. Shares of the company, which trades under the ticker HNGE, closed at $115.48 on November 2.
The quarterly comparison shows strong growth, though it followed a 53% year-over-year increase in revenue in the second quarter, when it reached $212.8 million versus $139.1 million a year earlier. In the third quarter, the customer base expanded to 3,270 customers as of September 30, up 28% from 2,560 customers on the same date in 2025. Management attributed stronger conversion to improved performance in clinically targeted registration campaigns, with the number of members joining through those campaigns rising about 75% year over year. Member renewals also rose about 25%, management said on the earnings call. These indicators reflect a broader customer base and improved conversion and renewal rates, factors management directly linked to billing and revenue performance.
Revenue growth was accompanied by gains in profitability metrics. Non-GAAP operating income reached about $77.2 million in the third quarter, up 154% from $30.4 million in the same period of 2025, and the operating margin reached 33%. The GAAP gross margin rose to 87% from 82% a year earlier, while the non-GAAP gross margin climbed to 88% from 83%. Free cash flow was $112.7 million, compared with $81.3 million in the third quarter of 2025. Cash, cash equivalents, marketable securities and restricted cash totaled $358.5 million as of September 30. On a trailing 12-month basis, calculated billings rose 54% to $960.3 million, compared with $624.2 million through September 30, 2025.
The company also raised its annual non-GAAP operating income forecast to a range of $266 million to $268 million, with expected annual growth of 123% and an operating margin of 30% at the midpoint. It said this level would represent an improvement of about 1,000 basis points in margin compared with 2025. For the fourth quarter, it expects revenue of $249 million to $251 million, representing annual growth of 46% at the midpoint. The guidance points to continued revenue growth at year-end, while the expected pace for the fourth quarter remains below the 52% increase recorded in the third quarter. Chief Executive Daniel Perez said the strong performance reflects the company's ability to deliver "exceptional clinical outcomes, a better care experience and lower costs for customers at scale."
Hinge Health continues to expand its programs alongside its core musculoskeletal care business, which management said remains by far its largest revenue contributor. The customer base for its musculoskeletal care program grew about 30% year over year, while the migraine care program's customer base nearly doubled from the previous quarter. The digestive care program's customer base grew about 40% since the company announced its acquisition of Syllender Health in August. Hinge Health announced on August 4 an agreement to acquire Syllender for $105 million in cash, with the aim of expanding into digestive care. The company is targeting a summer 2027 launch of the integrated digestive program, but expects its meaningful revenue contribution in 2028, after a full selling season for the program in 2027.
In a separate management change, the company announced that Jim Pursley will step down as president effective January 1, 2027, and join the board on January 4. Irene Buer will lead the commercial business as chief commercial officer. The change comes as the company continues to raise its fiscal-year outlook and expand its newer programs, while musculoskeletal care remains its largest revenue source, according to management. Hinge Health is targeting completion of the digestive care program launch in summer 2027. The company expects the program's largest revenue impact in 2028, after a full selling season in 2027.