Hinge Health (HNGE) Q2 2025 earnings summary

Executive summary

• Achieved 55% year-over-year revenue growth in Q2 2025, reaching $139.1 million, with 2,359 clients and strong expansion in large employer and public sector segments.

• Free cash flow margin remained robust at 23%, with free cash flow of $33M, reflecting operational efficiency and market momentum.

• Growth driven by higher eligible lives, improved enrollment yields, strong client retention, and adoption of AI-powered platform.

• Launched product enhancements, including AI-driven efficiencies, Hinge Select provider network, and new programs such as TrueMotion and Enso M3.

• Completed IPO in May 2025, raising $255.7 million in net proceeds, primarily used for employee tax obligations on equity awards.

Financial highlights

• Q2 2025 revenue: $139.1 million, up from $89.8 million in Q2 2024 (55% growth); LTM billings reached $568.4 million.

• Non-GAAP income from operations was $26M (19% margin); free cash flow was $33M (23% margin); GAAP loss from operations was $580.7M, including $591M in IPO-triggered stock-based compensation.

• Non-GAAP gross margin improved to 83% from 77% year-over-year; GAAP gross margin was 70%, down from 74% due to stock-based compensation.

• Sales & marketing expenses dropped to 36% of revenue (from 48%), R&D to 16% (from 27%), and G&A to 12% (from 18%).

• Ended Q2 with $415.1M in cash, cash equivalents, and marketable securities.

Outlook and guidance

• Q3 2025 revenue expected between $141M–$143M (41% year-over-year growth at midpoint); non-GAAP operating income expected $17M–$21M (13% margin midpoint).

• Full year 2025 revenue expected between $548M–$552M (41% year-over-year growth at midpoint); non-GAAP operating income $77M–$83M (15% margin midpoint).

• Guidance reflects reinvestment in Hinge Select, sales/marketing, and ongoing investments in AI, product innovation, and international expansion.

• Cash reserves expected to be sufficient for at least the next 12 months.