Why Is Hinge Health Stock Soaring Wednesday?

Hinge Health Inc. (NYSE:HNGE) stock rose Wednesday after the company reported better-than-expected fourth-quarter earnings.

Pain management-focused company reported adjusted earnings per share of 49 cents, beating the consensus of 39 cents.

Sales reached $170.73 million, jumped 46% year over year, beating the consensus of $156.64 million.

Gross margin was 84% compared to 82% a year ago. Adjusted gross margin was 85% compared to 82% in the fourth quarter of 2024.

Operating income increased 31% to $27.3 million, while adjusted operating income more than doubled (+124%) to $48.0 million.

Select Performance Metrics

• LTM calculated billings increased 44% year over year to $671.4 million.
• Annual yield of 3.9% in 2025, up 50 basis points.
• The number of clients increased 25% year over year to 2,830 clients.
• The number of members increased 47% year over year to 782,890.

“We closed out the year with an exceptional quarter and a strong selling season, driving our highest win rates to date and greatest number of eligible lives added in any year,” said Daniel Perez, Co-Founder and CEO, Hinge Health.

Outlook

Hinge Health expects first-quarter 2026 sales of $171 million-$173 million versus the consensus of $160.28 million.

The company expects adjusted income from operations to be between $30 million and $32 million and an operating margin of 18% at the midpoint.

Hinge Health forecasts fiscal 2026 sales between $732 million and $742 million versus the consensus of $701.33 million.

“Our commercial momentum, combined with expanding margins and strong cash generation, gives us confidence in our ability to continue automating care delivery, sustain our position as a leader in digital musculoskeletal care, and drive attractive growth and increased margins in 2026,” Perez commented on Tuesday.

William Blair on Tuesday wrote, “The company exited the year with significant momentum and high visibility, leading to 2026 guidance that came in nicely above Street expectations for both revenue and operating income. Lastly, the 2025 selling season ended on a high note, with strong win rates and solid performance across all lines of business.”

Analyst Ryan Daniels highlighted solid selling momentum (e.g., a record 4.8 million net-new contracted lives) and an all-time high win rate, 97% client retention, and a favorable guidance outlook.

William Blair remains a buyer of HNGE shares and views recent weakness as offering a compelling long-term entry point into shares. The analyst maintains the Outperform rating.

Over the last six months, Hinge Health’s stock has fallen by around 41%.

HNGE Price Action: Hinge Health shares were up 13.13% at $37.39 during premarket trading on Wednesday, according to Benzinga Pro data.

Photo by T. Schneider via Shutterstock