Hinge Health (HNGE) investor relations material

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, reflecting operational efficiency and market momentum, with free cash flow at $33M and margin over 23%.

• Net loss for Q2 2025 was $575.7 million, significantly impacted by $591 million in stock-based compensation expense triggered by the IPO.

• Strategic focus on automating healthcare delivery, expanding product offerings, leveraging AI for efficiency, and launching Hinge Select provider network.

• Expanded global program to five new European countries and published a claims-based ROI study showing 2.4x ROI for fully-insured populations.

Financial highlights

• Q2 2025 revenue: $139.1 million, up 55% from $89.8 million in Q2 2024; LTM calculated billings at $568.4 million, up 55%.

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

• Non-GAAP operating margin reached 19%, up from -16% in Q2 2024; non-GAAP income from operations was $26M.

• Free cash flow margin exceeded 23%, compared to 16% in Q2 2024; free cash flow was $33M.

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

Outlook and guidance

• Q3 2025 revenue expected between $141M and $143M, representing 41% year-over-year growth at midpoint.

• Full year 2025 revenue guidance: $548M–$552M, also 41% year-over-year growth at midpoint; non-GAAP income from operations projected at $77–83M (15% margin at midpoint).

• Non-GAAP operating margin guidance: 13% for Q3 and 15% for full year 2025.

• Guidance reflects continued operating efficiencies, reinvestment in Hinge Select, and sales/marketing.

• Management expects continued revenue growth from existing and new clients, with seasonality in billings.