| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 16 | 66.6x | 17.8x | Bottom tier | |
Growth | 95 | 49.8% | 7.1% | Top tier | |
Quality | 98 | 33.9% | 4.5% | Top tier | |
Safety | 79 | — | 2.6x | Top tier | |
Capital Return | 50 | — | 2.12% | Around median | |
Momentum | 95 | 44.2% | 2.9% | Top tier | |
Sentiment | 38 | 9 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Hinge Health provides a digital platform that automates healthcare delivery, with musculoskeletal disorder treatment and digital physical therapy remaining its core business. The company links its revenue to three variables: the average number of eligible members, the utilization rate or yield, and the average selling price per member. It then recognizes revenue over the subscription term, while billings reflect member engagement. The company serves approximately 3,000 clients, including more than half of the Fortune 100 companies, and is expanding its unified platform into Migraine, GI, HingeSelect with surgery, and Balance, leveraging its existing sales teams and partnerships with health plans and pharmacy benefit managers.
In Q2 of fiscal year 2026, revenue reached $213 million, up 53% year over year from $139 million and exceeding the company's guidance range of $200–202 million. Calculated billings for the last twelve months reached $862 million, up 52%, and non-GAAP gross margin was 87% versus 83% a year earlier, benefiting by approximately 100 basis points from a one-time customs refund. The company generated non-GAAP operating income of $62 million and an operating margin of 29%, and generated free cash flow of $100 million at a 47% margin, compared with $33 million and a 23% margin in Q2 of fiscal year 2025.
The growth mix reflects digital physical therapy's continued dominance of utilization, as management said the expected utilization rate of 4.45% in fiscal year 2026 comes almost entirely from it, while Migraine is still in the early stages of its contribution and the company is targeting a contribution of 10–20 basis points to the utilization rate during fiscal year 2027. As for GI, which Hinge Health will enter through the proposed $105 million cash acquisition of Cylinder Health, it is expected to add only $7–8 million to revenue during the approximately four remaining months of fiscal year 2026, ahead of a broader rollout in 2027 and greater acceleration that management expects in 2028.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $97.46, within a wide range of $65 to $125, and the stock carries a consensus “Buy” rating; the average target sits slightly above the top of the 52-week range of $95.57, while the highest target is clearly above that peak and the lowest target falls within the range. No reliable positive P/E ratio is available, as EDGAR data show a net loss of $510.3 million for the last twelve months and negative earnings per share of $6.19. Valuation therefore depends more heavily on continued revenue growth, non-GAAP cash flow, and the successful integration of Cylinder, with a wide 52-week range between $30.08 and $95.57 reflecting high sensitivity to expectations.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Revenue reached $213 million, up 53% from $139 million in Q2 of fiscal year 2025 and exceeding guidance of $200–202 million. Calculated billings for the last twelve months reached $862 million, up 52%, and the revenue beat was driven by an improved utilization rate, while the number of eligible members and average selling price came in as expected. Non-GAAP operating income was $62 million at a 29% margin, and free cash flow was $100 million at a 47% margin.
Hinge Health signed a definitive agreement to acquire Cylinder Health for $105 million in cash, with closing expected in late August or early September 2026. Cylinder has approximately 100 clients and 2 million eligible members, has treated 150 thousand people cumulatively, and shares 52 clients with Hinge Health's client base. The company expects a contribution of $7–8 million during the approximately four remaining months of fiscal year 2026, completion of product integration by summer 2027, and then greater expansion in 2028.
The Migraine program recorded more than 450 clients whose subscriptions cover more than 5 million members as of the August 4, 2026 call, and more than 10 health plans activated the program for their clients. Migraine operates within the same Hinge Health application, and a member can use it alongside the MSK program without being counted as two separate subscriptions. Management expects a contribution of 10–20 basis points to the utilization rate during fiscal year 2027 and intends to publish additional research on the program's impact in 2027.
The company is guiding to revenue of between $223 and $225 million in Q3 of fiscal year 2026, with the $224 million midpoint representing annual growth of 45%. It also expects non-GAAP operating income of between $61 and $63 million and a 28% margin at the midpoint. For fiscal year 2026, it raised revenue guidance to $856–860 million and operating income guidance to $236–244 million, with an expected utilization rate of approximately 4.45%.
The number of members in the small and medium-sized business segment increased by more than 100% during the first half of fiscal year 2026 compared with the corresponding period, benefiting from distribution investments that began in late 2025. A large national health plan selected Hinge Health as a default solution for the segment of companies with fewer than 3,000 members, using a model that automatically enrolls clients unless they opt out, with the addition of those clients scheduled to begin in early 2027. Among large enterprises, the company won a contract with a Fortune 15 company covering approximately 300 thousand members after displacing a competitor.
Integrating Cylinder requires approximately nine months through summer 2027, and the target company was operating at a loss, while Hinge Health expects it to take between one and two years to bring Cylinder to its margin profile. Q3 fiscal year 2026 guidance also indicates 45% growth, slower than 53% in Q2, and the previous quarter's margin included a nonrecurring customs benefit of approximately 100 basis points. Additional risks include the wide 52-week range between $30.08 and $95.57, the absence of a positive P/E ratio because of the $510.3 million loss for the last twelve months, and $1.6 billion in net insider sales over three months, some of which may have been prearranged.
