CNBC Television
Hinge Health CEO Daniel Perez talks quarterly results as stock sinks 5%
11/4/2025, 11:48:43 PM
Economic Summary
- Hinge Health reported Q3 revenue that beat expectations and provided Q4 guidance up about 33% at midpoint, though after-hours selling trimmed gains; revenue was up 53% year over year while client count rose 25% to 2,560.
- The company emphasizes automated digital physical therapy delivery and claims a 53% free cash flow margin, stating it is rapidly approaching profitability, which implies improving unit economics and capital efficiency.
- Hinge Health launched two AI initiatives: Robin, an always-on AI care assistant to improve convenience and cost profile, and movement analysis that uses phone camera computer vision to create an objective 'hinge score,' potentially improving outcomes measurement and engagement.
- Management attributes revenue growth to three drivers: number of people with access (client additions), higher enrollment rates within clients, and engagement duration, while ASP remained roughly flat year over year; Q4 seasonality and a strong prior-year quarter complicate comparisons.
Bullish
- Revenue grew 53% year over year, outpacing client growth, signaling improved monetization.
- High efficiency with a 53% free cash flow margin and nearing profitability.
- New AI products (Robin assistant, movement analysis/hinge score) should boost engagement and lower costs.
- Enrollment per client and engagement metrics are at record highs, supporting sustained revenue growth.
Bearish
- Shares fell after hours despite beating revenue and guidance, indicating investor skepticism or profit-taking.
- Revenue growth appears driven more by higher enrollment and engagement than by new large clients, risking saturation.
- Q4 guide faces a tough year-over-year compare and seasonal weakness from holidays, which may limit near-term upside.
- ASP (average selling price) has been roughly flat year over year, constraining per-user revenue expansion.
Bullish tickers
HINGE HEALTH
Bearish tickers
HINGE HEALTH
HINGE HEALTH
Bullish
53% revenue growth, 53% free cash flow margin, nearing profitability; AI features (Robin, movement analysis) and record enrollment/engagement support continued monetization gains.
Bearish
After-hours decline despite beats; growth tied to enrollment/engagement rather than client size; seasonal Q4 headwinds and flat ASP may limit upside.
People mentioned
Daniel Perez