Hinge Health Third-Quarter Revenue Jumps 52% To $235 Million, Guidance Raised As President Pursley Exits
The digital joint-and-muscle care company swung to an operating profit and lifted its 2026 revenue outlook to $879 million to $881 million.
Hinge Health, which sells digital care for joint and muscle pain to employers and health plans, said third-quarter revenue rose 52% to $235.0 million from $154.2 million a year earlier, and raised its 2026 outlook. In an 8-K filed Monday, the company also said President James Pursley has told it he will resign effective January 1, 2027, and will move to the board.
From a loss to a $50.3 million profit
Operating income under standard accounting was $50.3 million, against a $6.1 million loss a year earlier. Diluted earnings were $0.66 per share, compared with a $0.02 loss.
On the company's adjusted measure, operating income rose 154% to $77.2 million from $30.4 million, a 33% margin against 20%. Gross margin was 87% on a standard basis, up from 82%.
Free cash flow was $112.7 million, a 48% margin, up from $81.3 million. Cash, equivalents, marketable securities and restricted cash were $358.5 million on September 30.
Raised outlook and a growing client base
Hinge now expects full-year 2026 revenue of $879 million to $881 million, which it says is 50% growth at the midpoint. Its adjusted operating income guidance rose to $266 million to $268 million. For the fourth quarter it expects revenue of $249 million to $251 million.
Calculated billings over the past 12 months rose 54% to $960.3 million. Clients grew 28% to 3,270 from 2,560. Deferred revenue, which is prepaid client contracts not yet recognized as sales, reached $459.2 million on September 30, up from $300.9 million at the end of 2025.
As of December 31, 2025, the company had over 60 partners and about 22 million contracted lives from self-insured employers. CEO Daniel Perez said the client base for its musculoskeletal program is up almost 30% year over year and has nearly doubled for its migraine program since last quarter.
Pursley moves to the board
Pursley notified the company on October 29 of his intention to resign, and the filing says the decision was not the result of any disagreement with the company. He joins the board as a Class II director on January 4, 2027, as the board grows from six to seven seats. He will receive a $40,000 annual cash retainer and has waived director equity awards while he serves as an adviser.
Under an advisor agreement signed October 30, he is set to receive 40,000 restricted stock units, subject to compensation committee approval, vesting quarterly over four years.
Perez, the co-founder and CEO, will also become president on January 1 with no extra pay. Aaryn Pure will lead the commercial organization as chief commercial officer. "We wouldn't be the company we are today if not for Jim," Perez said.
Hinge discussed the results on a 4:30 p.m. ET call Monday; Pursley's board seat begins January 4, 2027.
Sources
- 8-K Filing — Hinge Health, Inc. (HNGE) — SEC EDGAR
- Exhibit hnge-q32026112xex991.htm — Hinge Health, Inc. 8-K exhibit — SEC EDGAR
- Hinge Health reports record third quarter 2026 financial results — businesswire.com
