Hinge Health Q2 Earnings Call Highlights

Hinge Health exceeded expectations in Q2 2026 , with revenue rising 53% year over year to $213 million, operating margin expanding to 29%, and free cash flow reaching $100 million.

Stronger member engagement drove the revenue beat and helped support higher profitability.

The company raised its full-year outlook to $856 million–$860 million in revenue and $236 million–$244 million in operating income.

Management also authorized an additional $300 million for share repurchases after buying back approximately 480,000 shares during the quarter.

Hinge Health is broadening beyond musculoskeletal care through its planned $105 million acquisition of Cylinder Health, adding gastrointestinal services, while its migraine program and sales pipeline continue to gain traction.

Cylinder is expected to contribute $7 million–$8 million of 2026 revenue, though integration and profitability improvements may take one to two years.

Hinge Health NYSE: HNGE reported second-quarter 2026 revenue of $213 million, up 53% from a year earlier and above the company’s prior guidance range of $200 million to $202 million.

The digital healthcare company also raised its full-year revenue and operating-income outlook, citing durable improvements in member engagement, or yield, alongside continued margin expansion.

Co-Founder and CEO Daniel Perez said the quarter provided another indication that the company’s strategy of automating care delivery is gaining traction.

Hinge Health’s core musculoskeletal, or MSK, business remains its primary platform, while the company is expanding into migraine and gastrointestinal care.

Hinge Health’s last-12-month calculated billings reached $862 million, up 52% from $568 million a year earlier.

The company defines calculated billings through average eligible lives, yield and average selling price per member.

Management said billings serve as a leading indicator of future revenue growth.

Chief Financial Officer James Budge said second-quarter revenue outperformance was driven by better-than-expected yield, while eligible lives and average selling price tracked in line with prior expectations.

The company attributed yield gains to targeted enrollment campaigns, member referrals and returning members.

Hinge Health reported the following second-quarter results:

Revenue of $213 million, up 53% year over year.

Income from operations of $62 million, more than double the prior-year period and above guidance of $50 million to $52 million.

Operating margin of 29%, compared with 19% a year earlier.

Gross margin of 87%, up from 83%, including an approximately 100-basis-point benefit from a one-time tariff refund.

Free cash flow of $100 million, compared with $33 million in the second quarter of 2025.

Free-cash-flow margin of 47%, up from 23% a year earlier.

The company ended the quarter with $476 million in cash and equivalents, before the expected cash payment for its planned acquisition of Cylinder Health.

Hinge Health also repurchased approximately 480,000 shares for $26 million during the quarter and said its board approved a new $300 million share-repurchase authorization.

Hinge Health signed a definitive agreement to acquire Cylinder Health for $105 million in cash, a transaction expected to close late in the third quarter.

Cylinder provides digestive-health services and has nearly 100 clients covering 2 million lives, according to management.

Perez said Cylinder has treated 150,000 people over its lifetime and has partnerships...