Hinge Health, Inc.

Hinge Health operates in the digital health market, specifically focused on musculoskeletal (MSK) care, addressing a broad spectrum from acute injury to chronic pain to post-surgical rehabilitation. The company leverages software, including AI, to automate care for joint and muscle health, delivering an outstanding member experience, improved member outcomes, and cost reductions for clients. The markets in which the company operates are competitive and characterized by rapid change, with competition based on brand recognition, product quality, price, and innovation. The digital health market is relatively new and rapidly evolving, and the MSK market is also new and rapidly evolving.

The company is a leading technology platform for individuals seeking to treat and prevent joint and muscle pain. Competitors include digital platforms that provide broad MSK care or programs that address a segment of MSK care, such as Kaia Health Software, Inc. (acquired by Sword Health Technologies, Inc. in January 2026), Omada Health, Inc., Sword Health Technologies, Inc., and Vori Health, Inc., as well as health plans and health systems which may offer or develop products or services with features or benefits that overlap with the company's platform and programs. The company believes it competes favorably based on multiple factors, including the strength of its market leadership, its ability to deliver comprehensive care, its software, data and AI advantage, its demonstrable member outcomes and ROI, its scalable go-to-market strategy, and the extensibility of its platform. As of December 31, 2025, the company had over 60 partners, including the five largest national health plans by self-insured lives, and the top three PBMs by market share. Client contracts through partners accounted for 82% of revenue for the year ended December 31, 2025 and 79% for the year ended December 31, 2024. For the years ended December 31, 2025 and 2024, client contracts through Health Care Service Corporation (HCSC) accounted for 17.5% and 17.1% of revenue, respectively, Elevance Health, Inc. accounted for 13.7% and 14.0% of revenue, respectively, and Aetna Life Insurance Company accounted for 10.5% and 11.6% of revenue, respectively.

The company generates revenue primarily from subscription fees paid by clients for access to its technology platform to treat and prevent MSK pain. The majority of revenue is generated from clients who are self-insured employers. The company sells an annual subscription model, whereby clients only pay for members that engage with its programs. Revenue is primarily recognized ratably over the 12 months after an eligible life becomes a member. The company also serves health plans' fully-insured and Medicare Advantage populations and federal insurance plans. The company sells through its direct sales force and its partners. Once it contracts with a client, it is most often the sole digital MSK care provider offered to their contracted lives, and its average contract term was three years as of December 31, 2025.

The company's platform is designed to address a broad spectrum of MSK care, from acute injury, to chronic pain, to post-surgical rehabilitation. Members receive personalized and automated MSK care through AI-powered motion tracking technology and a proprietary electrical nerve stimulation wearable device, all designed and monitored by an AI-supported care team of licensed physical therapists, physicians, and board-certified health coaches. The company offers a wide range of support with multiple programs, including chronic, acute, surgery decision support and high-risk member program, pre- and post-surgery, fall prevention, prevention, global, and HingeSelect. In 2025, the company launched and began selling its high-performance in-person provider network for MSK care, HingeSelect. The company's technology includes an intelligently personalized exercise engine, patented AI-powered motion tracking technology (TrueMotion), a proprietary high-risk identification engine (HingeConnect), an AI-supported Care Team Assistant, and advanced electrical nerve stimulation technology (Enso). As of December 31, 2025, the company owned 40 issued patents and 88 pending patent applications for TrueMotion, and 8 issued patents and 12 pending patent applications for Enso.

In 2025, the company launched and began selling HingeSelect, its high-performance in-person provider network for MSK care. In May 2025, the company completed its initial public offering (IPO), issuing and selling an aggregate of 8,522,528 shares of Class A common stock, and certain stockholders sold 7,193,372 shares of Class A common stock at a public offering price of $32.00 per share. The company received aggregate proceeds of $255.7 million, net of underwriting discounts and commissions before deducting offering expenses. On November 10, 2025, the board of directors authorized a share repurchase program to purchase up to $250.0 million of shares of outstanding Class A common stock. As of December 31, 2025, the company had completed $65.0 million of repurchases under the program. In February 2025, the company acquired certain assets of a privately held company for approximately $4.0 million. In April 2024, the company announced a restructuring plan to reduce its workforce by approximately 160 people, or approximately 10% of its workforce, with restructuring charges of $7.5 million.

Revenue for the year ended December 31, 2025 was $587.9 million, an increase of 51% compared to $390.4 million in the prior year. The company incurred a net loss of $528.3 million for the year ended December 31, 2025, compared to a net loss of $11.9 million for the year ended December 31, 2024. The net loss for 2025 included $643.0 million in stock-based compensation expense, primarily related to the satisfaction of certain vesting criteria achieved with the IPO. Gross margin was 80% for 2025 compared to 77% for 2024. Net cash provided by operating activities was $171.4 million for 2025, compared to $49.0 million for 2024. Free cash flow was $179.6 million for 2025, compared to $45.2 million for 2024.

The company plans to expand its client base in its core markets and beyond. As of December 31, 2025, approximately 22 million lives from self-insured employers were contracted in its existing client base. The company intends to leverage its experienced sales force and strong relationships with health plans, benefits consultants, and other ecosystem partners to further expand its client base. The company has expanded beyond its core self-insured employer market and will continue to evaluate opportunities to do so in the future. As of December 31, 2025, the company was contracted with approximately 3 million lives in the fully-insured health plan, Medicare Advantage, and federal insurance plan segment. The company also expects to expand into additional government agencies and government healthcare programs, such as Medicare and Medicaid. Regarding international expansion, in the third quarter of 2024, the company began introducing its global program to clients that are U.S.-based multinational corporations. It has now expanded into Canada, France, Germany, Ireland, the Netherlands, and the United Kingdom and expects to further expand its global footprint in 2026. The company also plans to expand to non-U.S. based employers and government payers in countries outside of the U.S. over time.

The company plans to drive growth by increasing adoption across its existing client base. It expects to leverage its partner integrations, its proprietary HingeConnect AI-driven database, and its enrollment team's capabilities to reach out to eligible lives when they are most likely to benefit from the platform. The company has dedicated research and development resources to continuously optimize its targeting to maximize the number of eligible lives that enroll in its programs. The company has increased the number of affected areas addressed by its platform, from two at its inception (knee and back) to sixteen as of December 31, 2025. It has also created programs for many different types of care by expanding from chronic care to include acute, pre- and post-surgery, and preventative care. The company has a history of innovation and expects to continue to develop and invest in its platform to provide more value to its members, clients, and partners over time. In 2025, it launched and began to sell HingeSelect, its high-performance in-person provider network for MSK care. The company believes it has a promising product roadmap ahead of it.

The company expects its costs will continue to increase in the foreseeable future as it expects to invest additional funds to grow its business, maintain and increase its members and clients, expand its engagement with partners, hire additional employees, including its care team, develop new programs and enhance its platform. The company also expects to incur additional legal, accounting, and other expenses as it grows and operates as a publicly traded company. The company's cost base is mostly variable, and it maintains strong operational focus with efficiency improvement targets for every function within the company.

The company's research and development organization is responsible for the design, architecture, operation, and quality of its platform. The company dedicates its research and development resources primarily in San Francisco, U.S., Bangalore, India, and Montreal, Canada. The company has a full-time workforce of 1,437 employees as of December 31, 2025, and supplements its workforce with contractors and consultants. The company has expanded its technical support team internationally.

The company's research and development expenses for the year ended December 31, 2025 were $368.1 million, which included $264.6 million in stock-based compensation. Capitalized internal-use software costs were $6.7 million for the year ended December 31, 2025. Purchases of property, equipment and software (including capitalized internal-use software) were $6.1 million for the year ended December 31, 2025. On November 10, 2025, the board of directors authorized a share repurchase program to purchase up to $250.0 million of shares of outstanding Class A common stock. As of December 31, 2025, the company had completed $65.0 million of repurchases under the program. The company has never declared or paid cash dividends on its capital stock and does not expect to declare or pay any dividends in the foreseeable future.

The company faces risks related to its ability to attract new clients and retain existing ones, as a substantial portion of its client relationships are contracted through a limited number of health plans and other partners. Client contracts through partners accounted for 82% of revenue for the year ended December 31, 2025 and 79% for the year ended December 31, 2024. The loss of any key partners could impact the growth rate of revenue. The company also faces risks related to its increasing reliance on AI and machine learning technologies, which may expose it to development and deployment challenges, regulatory uncertainties, and potential third-party claims. The company operates in a highly regulated industry and changes over time in regulations could affect its operations and subject it to increased compliance costs and liabilities. The company's Enso device is subject to extensive government regulation, and failure to timely obtain necessary marketing authorizations for modifications or new device products could have a material adverse effect. The company has a history of net losses, with a net loss of $528.3 million for the year ended December 31, 2025 and an accumulated deficit of $1.05 billion as of December 31, 2025.

The company has a history of net losses, with a net loss of $528.3 million ¹ for the year ended December 31, 2025 and an accumulated deficit of $1.05 billion ² as of December 31, 2025, and may not be able to achieve or maintain profitability. A substantial portion of client relationships are contracted through a limited number of health plans and other partners, with client contracts through partners accounting for 82% ³ of revenue for the year ended December 31, 2025, and the loss of any key partners could materially adversely affect the business. The company's increasing reliance on AI and machine learning technologies exposes it to significant risks, including development and deployment challenges, regulatory uncertainties, and potential third-party claims. The company's Enso device is subject to extensive government regulation, and failure to timely obtain necessary marketing authorizations for modifications or new device products could have a material adverse effect. The company operates in a highly regulated industry, and changes in healthcare laws and regulations, including those related to telehealth and the corporate practice of medicine, could increase compliance costs and liabilities.

Management's message emphasizes the company's vision to build a new health system that transforms outcomes, experience, and costs by using technology to scale and automate the delivery of care. Key themes include the company's leadership in the MSK care market, its efficient go-to-market model through partnerships, and its commitment to continuous innovation. Strategic priorities emphasized for the period ahead include expanding the client base in core markets and beyond, increasing adoption across the existing client base, and launching new programs and capabilities driven by investment in the platform. The company believes it is well positioned for continued growth.