Why Hinge Health Stock Popped on Wednesday
Key Points
Hinge Health beat on top and bottom lines last night.
Hinge is growing sales, earnings, and free cash flow rapidly, though growth could slow in 2026.
- 10 stocks we like better than Hinge Health ›
Hinge Health (NYSE: HNGE) stock surged 15% through 9:50 a.m. ET Wednesday after beating on Q4 earnings.
Heading into last night's report, analysts forecast the healthcare platform to earn $0.43 per share on $156.8 million in sales. Hinge surprised analysts, however, earning $0.49 per share on sales of $170.7 million.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Hinge Health Q4 earnings
Providing wearable devices, clinical access, and AI-powered health advice, treating musculoskeletal conditions is Hinge's business -- and business is good. Sales surged 46% year over year in Q4, and gross margins expanded by 200 basis points.
Hinge's GAAP profit per share declined 7.5%, mostly because of stock dilution resulting from the May 2025 IPO. Net profit grew more than 360% year over year. Free cash flow increased 65% to $61.5 million. (Sidenote: Hinge helpfully deducts its capitalized software costs from cash flow as a capital expense, to arrive at an accurate and conservative FCF number that investors can rely upon).
For the year, Hinge reported sales growth of 51%, 80% gross margins, a GAAP loss, but free cash flow of $179.6 million.
Is Hinge stock a buy?
CEO Daniel Perez called the Q4 results "exceptional" and highlighted his company's "expanding margins and strong cash generation." Looking ahead to 2026, the company aims to build on its momentum, forecasting 39% sales growth in Q1 and 25% growth to about $737 million in annual sales.
Management did not give free cash flow or GAAP guidance for the year, but forecast 2026 non-GAAP earnings growth ahead of sales growth -- 29%.
What does this mean for investors? At $2.6 billion in market cap, Hinge trades for only about 14.4x FCF -- but should grow that number close to 30% or better. With these numbers, Hinge stock sure looks like a buy to me.
Should you buy stock in Hinge Health right now?
Before you buy stock in Hinge Health, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Hinge Health wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,353!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,789!*
Now, it’s worth noting Stock Advisor’s total average return is 920% — a market-crushing outperformance compared to 196% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 11, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
