Hinge Health Inc (HNGE) Q4 2025 Earnings Call Highlights: Impressive Revenue Growth Amidst …

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Wed, February 11, 2026 at 2:02 PM GMT+9 3 min read

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This article first appeared on GuruFocus.

Release Date: February 10, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Hinge Health Inc (NYSE:HNGE) reported a 46% year-over-year revenue growth for Q4 2025, reaching $171 million.

The company achieved a gross margin of 85% in Q4, showcasing the scalability of its technology-driven care model.

Hinge Health Inc (NYSE:HNGE) generated $62 million in free cash flow in Q4, representing a free cash flow margin of 36%.

The company expanded its market reach to nearly 25 million contracted lives, demonstrating strong commercial momentum.

Hinge Health Inc (NYSE:HNGE) introduced AI-powered tools that improved care delivery efficiency, allowing the company to serve 47% more members while keeping care team costs flat.

Negative Points

Despite the positive financial performance, the company faces potential threats from new entrants in the market, including large tech companies and startups.

Hinge Health Inc (NYSE:HNGE) anticipates no significant revenue impact from its Hinge Select product until at least 2027.

The company is investing heavily in expanding its provider network, which may take several years to build and scale.

There is uncertainty regarding the pricing structure of the CMS Access program, which could impact future revenue from the Medicare population.

Hinge Health Inc (NYSE:HNGE) is assuming flat yield in its 2026 forecast, indicating potential challenges in driving further engagement improvements.

Q & A Highlights

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Q: How does Hinge Health view its competitive advantages in light of AI advancements potentially replicating company capabilities? A: Daniel Perez, CEO, emphasized that Hinge Health’s competitive advantages extend beyond just software. These include proprietary data from over 100 million treatment sessions, established distribution channels with health plans and employers, a product experience that integrates software, hardware, and in-person care, and strong clinical validation. These factors create significant entry barriers for potential competitors.

Q: Can you explain the impact of the new engagement-based pricing model on revenue recognition and cash flow? A: James Budge, CFO, explained that the new model aligns interests with clients by billing as usage occurs, rather than upfront. This results in a minor difference in cash flow timing but does not affect revenue recognition, which begins on the first day of treatment under both models.

Story Continues  

Q: What initiatives are in place to drive yield improvements in 2026, given the flat yield assumption? A: Daniel Perez, CEO, highlighted ongoing investments in product-led growth and targeted enrollment efforts based on prior claims history. These initiatives have already shown significant results, with targeted enrollment up 160% year over year, and are expected to continue driving yield improvements.

Q: How does Hinge Health view industry consolidation among competitors, and what is the company’s focus regarding M&A? A: Daniel Perez, CEO, noted that Hinge Health has seen customers switch from competitors and maintains a strong competitive win rate. The company focuses on organic growth but remains open to acquiring innovative products and teams that align with its vision of automating healthcare delivery.

Q: What is the strategy for expanding Hinge Select, and how does it impact revenue? A: Daniel Perez, CEO, explained that Hinge Select targets existing customers and prospects, focusing on building a provider network in select geographies. The strategy involves creating a precision network that complements health plan partners. Revenue impact from Hinge Select is expected to be meaningful starting in 2027.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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