HNGE Delivers 53% Revenue Growth and Record Free Cash Flow as AI Healthcare Model Scales Up
AI-Driven Platform Powers Outstanding Growth in Q3 2025
Hinge Health (NYSE: HNGE) has taken a decisive leap in its mission to modernize healthcare delivery. In its third-quarter 2025 results, the company reported an impressive 53% year-over-year increase in revenue, reaching $154.2 million, alongside record free cash flow and substantial margin improvements. Membership also surpassed 1.5 million lifetime members, reflecting both commercial momentum and member engagement on Hinge's AI-powered care platform.
Financial Highlights Signal Strong Operating Leverage
The company's non-GAAP financials paint a picture of rapidly improving efficiency and profitability. Non-GAAP gross margin rose to 83%, up from 79% a year prior, while non-GAAP income from operations soared to $30.4 million (versus a $3.7 million loss in Q3 2024). Operating cash flow hit $82.4 million for the quarter, helping deliver free cash flow of $81.3 million and an exceptional free cash flow margin of 53%.
| Key Metric | Q3 2025 | Q3 2024 | Change |
|---|---|---|---|
| Revenue | $154.2M | $100.6M | +53% |
| Non-GAAP Gross Margin | 83% | 79% | +4pts |
| Non-GAAP Income from Operations | $30.4M | ($3.7M) | Reversal to profit |
| Free Cash Flow | $81.3M | $27.5M | +196% |
| Free Cash Flow Margin | 53% | 27% | +26pts |
| LTM Calculated Billings | $624.2M | $416.9M | +50% |
| Number of Clients | 2,560 | 2,047 | +25% |
Rising Client Count and Member Growth Accelerate Market Expansion
HNGE continues to demonstrate commercial traction: the client base increased by 25% to 2,560 organizations, and last-twelve-months (LTM) calculated billings grew 50% year-over-year. CEO Daniel Perez emphasized that Hinge Health’s AI-enabled approach not only boosts engagement but also addresses the urgent challenge of rising healthcare costs for clients.
Guidance Points to Continued Upside Through Year-End
Looking ahead, HNGE is guiding for Q4 revenue of $155 million to $157 million, with a midpoint representing 33% growth over last year. Non-GAAP operating income is forecast to reach $34 million to $36 million—up 63% at the midpoint, supporting a healthy operating margin of approximately 22%. For the full year, revenue guidance has been raised to $572 million to $574 million (47% growth at midpoint), with non-GAAP operating income between $106 million and $108 million.
| Guidance (at Midpoint) | Q4 2025 | FY 2025 |
|---|---|---|
| Revenue | $156M | $573M |
| Non-GAAP Income from Operations | $35M | $107M |
| Non-GAAP Operating Margin | 22% | 19% |
Cash Position and Balance Sheet Remain Strong
HNGE closed the quarter with $496.9 million in cash, cash equivalents, marketable securities, and restricted cash—providing significant firepower for investment in growth and innovation. Total assets rose to $769.8 million, while free cash flow supports a strategic cushion to weather volatility or pursue future initiatives.
What Stands Out: AI Investment Fuels Scalability, Profitability
The big takeaway: Hinge Health’s rapid scale and transition to positive non-GAAP operating profit reflect an inflection point for its business model. A combination of high revenue growth, margin expansion, and robust cash generation underscores the leverage of HNGE’s AI-driven approach as it expands its addressable market. For those tracking the digital health landscape, HNGE’s trajectory—and its rising operating margins—deserve a close watch through 2025.
Contact Information:
If you have feedback or concerns about the content, please feel free to reach out to us via email at support@marketchameleon.com.
About the Publisher - Marketchameleon.com:
Marketchameleon is a comprehensive financial research and analysis website specializing in stock and options markets. We leverage extensive data, models, and analytics to provide valuable insights into these markets. Our primary goal is to assist traders in identifying potential market developments and assessing potential risks and rewards.
NOTE: Stock and option trading involves risk that may not be suitable for all investors. Examples contained within this report are simulated and may have limitations. Average returns and occurrences are calculated from snapshots of market mid-point prices and were not actually executed, so they do not reflect actual trades, fees, or execution costs. This report is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither Market Chameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades. You can read more about option risks and characteristics at theocc.com.
The information is provided for informational purposes only and should not be construed as investment advice. All stock price information is provided and transmitted as received from independent third-party data sources. The Information should only be used as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments and trading strategies. The Company does not guarantee the accuracy, completeness or timeliness of the Information.
Disclosure: This article was generated with the assistance of AI