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SAN FRANCISCO--(BUSINESS WIRE)-- Hinge Health, Inc. (NYSE: HNGE) today announced financial results for the second quarter ended June 30, 2025.

"In Q2 we delivered year-over-year revenue growth of 55% and a strong free cash flow margin, underlining the market's embrace of our AI-powered platform," said Daniel Perez, Co-Founder and CEO, Hinge Health. "The journey of automating healthcare delivery will be challenging, but we’re excited about our momentum and are moving with haste to capture this opportunity."

Second Quarter 2025 Financial Highlights:

• Revenue increased 55% year-over-year to $139.1 million compared to revenue of $89.8 million in Q2 2024.
• GAAP gross margin was 70% compared to 74% in Q2 2024. Non-GAAP gross margin was 83% compared to 77% in Q2 2024.
• GAAP loss from operations was $580.7 million, which included $591.0 million in stock-based compensation expense, compared to GAAP loss from operations of $17.6 million in Q2 2024.
• Non-GAAP income from operations was $26.1 million compared to non-GAAP loss from operations of $14.4 million in Q2 2024.
• Net cash provided by operating activities was $20.2 million compared to a net cash provided by operating activities of $14.9 million during Q2 2024. Free cash flow was $32.6 million, which included an adjustment of $14.2 million for employer taxes related to stock-based compensation at IPO, compared to free cash flow of $14.0 million during Q2 2024.
• Cash, cash equivalents, marketable securities and restricted cash were $415.1 million as of June 30, 2025.

Key Metrics as of June 30, 2025:

• LTM calculated billings of $568.4 million compared to $367.8 million for Q2 2024, an increase of 55%.
• Number of clients increased 32% to 2,359 clients compared to 1,785 clients in Q2 2024.

Financial Outlook:

We are providing the following guidance for our third quarter and full year 2025:

• Q3 2025: We expect our revenue to be between $141 million and $143 million, reflecting year-over-year growth of 41% at the midpoint. We expect our non-GAAP income from operations to be between $17 million and $21 million, compared to non-GAAP loss from operations of $3.7 million in Q3 2024.
• Fiscal Year 2025: We expect our revenue to be between $548 million and $552 million, reflecting year- over-year growth of 41% at the midpoint. We expect our non-GAAP income from operations to be between $77 million and $83 million, compared to non-GAAP loss from operations of $26.1 million in 2024.

Statement Regarding Use of Non-GAAP Financial Measures

This press release uses non-GAAP financial measures, which are not calculated in accordance with generally accepted accounting principles of the United States (GAAP). For more information about these non-GAAP financial measures, including the limitations of such measures, and for a reconciliation of each measure to the most directly comparable measure calculated in accordance with GAAP, please see the "Non-GAAP Financial Measures" section below.

Moreover, we have not reconciled our non-GAAP income (loss) from operations guidance to GAAP income (loss) from operations because we do not and are not able to provide guidance for GAAP income (loss) from operations due to the uncertainty and potential variability of stock-based compensation expense, employer payroll tax expense related to stock-based compensation, amortization of intangible assets and adjustments, such as the excess inventory and transition charges, restructuring and other expense and acquisition related expense, which are reconciling items between non-GAAP and GAAP income (loss) from operations. Because such items cannot be provided without unreasonable efforts, we are unable to provide a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures. However, such items could have a significant impact on our future GAAP income (loss) from operations.

Hinge Health Earnings Webcast

We will host a conference call and webcast for investors on August 5, 2025 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss our financial results, business highlights and financial outlook. The live webcast of the conference call can be accessed by registering online at ir.hingehealth.com/events-presentations.

Following completion of the events, a webcast replay will also be available at ir.hingehealth.com for 12 months.

 

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