Hinge Health (HNGE) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $154.2 million, up 53% year-over-year, with calculated billings of $624.2 million, and client count grew 25% to 2,560, driven by expansion in large employer and federal segments.

• Surpassed 1.5 million lifetime members, with strong commercial momentum and robust engagement on the AI-powered platform.

• Product innovation included the launch of Robin AI care assistant, advanced motion tracking, and a shift to proprietary AI-powered technology.

• Net loss for the nine months was $560.4 million, primarily due to $625.8 million in IPO-triggered stock-based compensation expense.

• Completed IPO in May 2025, raising $255.7 million in net proceeds, mainly used for employee tax obligations.

Financial highlights

• Q3 2025 revenue: $154.2 million (up 53% year-over-year), exceeding guidance; LTM calculated billings: $624.2 million.

• GAAP gross margin improved to 82% (non-GAAP: 83%), up from 79% last year; operating margin (non-GAAP) rose to 20% from -4%.

• Free cash flow for Q3 2025 was $81.3 million, with a margin of 53%; net cash from operating activities was $82.4 million.

• Cash, cash equivalents, and marketable securities totaled $496.9 million at quarter end.

• Net loss for Q3 was $1.8 million; basic and diluted net loss per share for Q3 2025 was $(0.02).

Outlook and guidance

• Q4 2025 revenue expected at $155–$157 million (33% year-over-year growth at midpoint); non-GAAP income from operations projected at $34–$36 million, with a 22% margin at midpoint.

• Full-year 2025 revenue guidance raised to $572–$574 million (47% year-over-year growth at midpoint); non-GAAP income from operations expected at $106–$108 million (19% margin).

• Management expects continued revenue growth driven by client expansion and high retention rates (98% as of December 2024).

• Continued investment in growth, R&D, and operational efficiency, with cash reserves expected to be sufficient for at least 12 months.