Hinge Health, Inc. Q4 FY2025 earnings call

• Financial Performance: Strong revenue growth, high gross and operating margins, and significant free cash flow generation.
• Product Updates: AI-powered tools enhancing efficiency and member experience, Robin AI care assistant with high positive ratings, and progress with Hinge Select provider network.
• Commercial Progress: Strong sales season with net new contracted lives, high client retention, and partnerships with health plans.
• Clinical Outcomes: Peer-reviewed study showing benefits of chronic back program reducing imaging visits.

For Q4 2025, revenue was $171 million, a 46% year-over-year growth. Full year 2025 revenue reached $588 million, up 51% from 2024. Last twelve months calculated billings were $671 million, up 44% YOY. Gross margin was 85% in Q4 and 83% for full year 2025. Operating margin was 28% in Q4 and 20% for full year 2025. Free cash flow was $62 million in Q4 and $180 million for the full year. The rule of 40 metric was 81 for full year 2025 and 82 for Q4 2025.

• Q1 2026 revenue expected to be in the range of $171 million to $173 million, representing 39% YOY growth at midpoint. Q1 non-GAAP income from operations projected at $30 million to $32 million (18% margin).
• Full year 2026 revenue expected to be $732 million to $742 million (25% YOY growth at midpoint). Full year non-GAAP income from operations expected $151 million to $156 million (21% margin at midpoint).

• Forward-looking statements are subject to various risks, uncertainties, and assumptions. Detailed risks discussed in SEC filings, including most recent quarterly report on Form 10-Q and upcoming annual report on Form 10-K.

Q: How do you think about Hinge's moats in response to fears around AI potentially replicating what the company can do?

A: Our moats include proprietary data, distribution channels, product experience extending beyond software to hardware and in-person networks, and clinical validation.

Q: Can you recap when engagement levels hit highest billable milestones and how revenue recognition differs from old model?

A: Bills go out as usage happens over 2-3 months vs upfront, revenue starts on day one of treatment under either method.

Q: Talk about initiatives driving yield upside and impact of industry consolidation?

A: Initiatives include product-led growth and targeted enrollment. Industry consolidation has seen competitive wins and our head-to-head win rate is up.

Q: Discuss TAM expansion and AI in R&D?

A: TAM expansion via new indications and upselling. AI used in product experience, care team efficiency, and product development with increased R&D team throughput.

Q: Confidence in flat ASP assumptions for 2026 and TAM expansion with CMS access program?

A: Confident in flat ASP with potential slight increase. CMS access program is an opportunity but expected contribution in 2027 and beyond.

Q: Strategy for Hinge Select and incremental revenues?

A: Targeting existing customers and prospects, building provider network in selected geos, with minimal revenue impact in 2026.

Q: Targeted enrollment efforts and new conditions in 2026?

A: Targeted based on claims data, investing in algorithms with good output, and focusing on physical therapy market.

Q: SBC and dilution mental model?

A: Dilution has come down, SBC around $20-$25 million quarterly, focusing on free cash flow per share.

Q: Sales pipeline for midsized employers and utilization rates for Hinge Select?

A: See growth in midsized market as under penetration, utilization rates for Hinge Select trends towards lower cost care but specifics early.