Hinge Health Raises 2026 Revenue Target to $860M on 53% Growth
Hinge Health lifted its 2026 revenue outlook to $860 million after Q2 sales jumped 53%, supported by the $105 million Cylinder Health acquisition.
Key points
- Hinge Health raised 2026 revenue guidance to $856-$860 million after Q2 sales grew 53% to $212.8 million.
- The company will acquire Cylinder Health for $105 million to expand into GI care, adding two million lives.
- Non-GAAP operating margin is guided to 28% at the midpoint, despite high R&D and sales expenses.
Hinge Health has raised its full-year 2026 revenue guidance to a range of $856 million to $860 million, signaling confidence in its digital musculoskeletal care platform. The company’s second-quarter revenue surged 53% year-over-year to $212.8 million, outpacing the broader healthcare sector and contributing to a 104.9% stock price increase year-to-date.
Management attributes this acceleration to stronger member yields and an expanding client base. The firm now projects non-GAAP operating income between $236 million and $244 million, implying an operating margin of 28% at the midpoint. This performance supports a current market capitalization of $7.66 billion, as investors focus on the company’s ability to scale its AI-driven care model.
Guidance reflects stronger billings
The upward revision is underpinned by a 52% increase in last-twelve-month calculated billings to $862 million. Third-quarter revenue is now projected between $223 million and $225 million, representing 45% growth at the midpoint. These figures indicate that improvements in enrolment, referrals, and renewals are driving sustainable top-line expansion rather than one-time events.
Acquisition expands care portfolio
Hinge Health is acquiring Cylinder Health for $105 million to enter the gastrointestinal care market, adding nearly 100 clients and two million eligible lives. The deal is expected to contribute $7 million to $8 million in 2026 revenue, with broader rollout planned for 2027. This move diversifies the company’s addressable market, which includes an estimated $78 billion opportunity in migraine care where adoption reached 450 clients in Q2.
The integration of Cylinder Health adds complexity to the operational roadmap, as management notes that GI care requires significant upfront investment. While the acquisition strengthens the land-and-expand strategy, it introduces integration costs that may temper immediate margin gains. The company aims to leverage its existing distribution network to maximize wallet share across these new therapeutic areas.
Investment weighs on margins
Second-quarter GAAP operating expenses totaled $143.5 million, including $81.4 million for sales and marketing and $34.1 million for research and development. These substantial reinvestments are necessary to fund product expansion and support the growing client base. Although margins are expanding, the pace of improvement may slow if the company accelerates its build-out of new programs.
Analysts noted a negative trend in earnings estimates, with the 2026 consensus EPS dropping by 8 cents to $2.38 over the past 30 days. Despite this, third-quarter EPS consensus remains at 63 cents, an 85.3% improvement from the prior year. According to TradingView, the company’s strong execution continues to drive investor interest despite these revision pressures.
