Hinge Health shares climbed 10% in premarket trading Wednesday after the digital physical therapy provider reported a 46% revenue surge for the fourth quarter. The company paired its robust earnings with an optimistic long-term outlook, signaling sustained demand for its virtual musculoskeletal care platform through 2026.
The company reported fourth-quarter earnings of $32.1 million, or 37 cents per share, up from $27.1 million in the same period last year. While the per-share figure was slightly diluted by a larger share float compared to a year ago, the top-line performance remained the primary catalyst for investors. Total revenue for the quarter reached $170.7 million, reflecting the rapid adoption of digital health services.
Scaling the Digital Clinic
Management issued strong guidance for the upcoming year, targeting first-quarter adjusted earnings between $30 million and $32 million on revenue of up to $173 million. Looking further ahead, Hinge projects its 2026 revenue will reach as high as $742 million, a significant increase from the $587.9 million reported for 2025. This growth trajectory is supported by the company's expanding commercial momentum and improving margins.
Key financial and operational targets include:
- First-quarter revenue projected between $171 million and $173 million.
- Fiscal 2026 revenue targeted at $732 million to $742 million.
- Shares rising 10% to $36.50 in early trading following the announcement.
Co-founder and CEO
Daniel Perez attributed the results to a focus on automating care delivery and maintaining a leadership position in the musculoskeletal sector. The company's model connects patients with physical therapists via digital appointments, a segment that Perez claims is poised for attractive growth and increased cash generation. By streamlining virtual care, Hinge aims to sustain its market share while driving higher profitability over the next 24 months.
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