Why Hinge Health Stock Popped on Wednesday

Hinge Health (NYSE: HNGE) banal surged 15% done 9:50 a.m. ET Wednesday aft beating connected Q4 earnings.

Heading into past night's report, analysts forecast the healthcare level to gain $0.43 per stock connected $156.8 cardinal successful sales. Hinge amazed analysts, however, earning $0.49 per stock connected income of $170.7 million.

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Providing wearable devices, objective access, and AI-powered wellness advice, treating musculoskeletal conditions is Hinge's concern -- and concern is good. Sales surged 46% twelvemonth implicit twelvemonth successful Q4, and gross margins expanded by 200 ground points.

Hinge's GAAP nett per stock declined 7.5%, mostly due to the fact that of banal dilution resulting from the May 2025 IPO. Net profit grew much than 360% twelvemonth implicit year. Free currency travel accrued 65% to $61.5 million. (Sidenote: Hinge helpfully deducts its capitalized bundle costs from currency travel arsenic a superior expense, to get astatine an close and blimpish FCF fig that investors tin trust upon).

For the year, Hinge reported income maturation of 51%, 80% gross margins, a GAAP loss, but escaped currency travel of $179.6 million.

CEO Daniel Perez called the Q4 results "exceptional" and highlighted his company's "expanding margins and beardown currency generation." Looking up to 2026, the institution aims to physique connected its momentum, forecasting 39% income maturation successful Q1 and 25% maturation to astir $737 cardinal successful yearly sales.

Management did not springiness escaped currency travel oregon GAAP guidance for the year, but forecast 2026 non-GAAP net maturation up of income maturation -- 29%.

What does this mean for investors? At $2.6 cardinal successful marketplace cap, Hinge trades for lone astir 14.4x FCF -- but should turn that fig adjacent to 30% oregon better. With these numbers, Hinge banal definite looks similar a bargain to me.

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