HNGE

Hinge Health is a digital musculoskeletal (MSK) care platform that uses AI-powered motion tracking (TrueMotion), a nerve-stimulation wearable, and an AI-supported care team to deliver scalable joint-and-muscle care to self-insured employers and health plans. FY2025 growth was strong — revenue rose 50.6% to $588M with gross profit up 56.1% and an excellent 79.6% gross margin — extending a rapid ramp from $293M in FY2023. The platform is sticky: clients sign ~3-year contracts with Hinge typically the sole digital MSK provider, and the company has 60+ partners including the five largest national health plans by self-insured lives and the top three PBMs.

The headline net loss of $528M looks alarming but must be read carefully: it is dominated by stock-based compensation tied to the May 2025 IPO. The filing is explicit that the IPO (8,522,528 shares sold at $32.00, ~$255.7M net proceeds to the company) and the use of proceeds substantially to pay employee taxes on RSU/PRSU settlement drove the surge in R&D expense (up 265.1% to $368M) and the loss. The truer picture of operating health is cash flow: operating cash flow was positive $171M (up 249.9%) on negligible capex, and management notes the company has achieved net income in certain quarters. So the business is already free-cash-flow generative even as GAAP earnings are distorted by one-time equity-settlement charges.