Why Is Hinge Health Stock Soaring Wednesday?

Core Insights - Hinge Health Inc. reported better-than-expected fourth-quarter earnings, with adjusted earnings per share of 49 cents, surpassing the consensus of 39 cents [1] - Sales reached $170.73 million, a 46% year-over-year increase, exceeding the consensus of $156.64 million [1] - The company achieved a gross margin of 84%, up from 82% a year ago, and an adjusted gross margin of 85% compared to 82% in the fourth quarter of 2024 [1] Financial Performance - Operating income increased by 31% to $27.3 million, while adjusted operating income more than doubled, rising 124% to $48.0 million [2] - LTM calculated billings increased by 44% year over year to $671.4 million [7] - The annual yield for 2025 is projected at 3.9%, an increase of 50 basis points [7] Market Outlook - Hinge Health expects first-quarter 2026 sales between $171 million and $173 million, compared to the consensus of $160.28 million [4] - The company anticipates adjusted income from operations to be between $30 million and $32 million, with an operating margin of 18% at the midpoint [4] - Fiscal 2026 sales are forecasted to be between $732 million and $742 million, exceeding the consensus of $701.33 million [4] Strategic Positioning - The company closed the year with strong commercial momentum, achieving record win rates and the highest number of eligible lives added in any year [3] - Hinge Health's CEO expressed confidence in the company's ability to automate care delivery and sustain its leadership in digital musculoskeletal care [5] - Analyst commentary highlighted significant momentum and high visibility for 2026 guidance, with a record 4.8 million net-new contracted lives and a 97% client retention rate [6] Stock Performance - Hinge Health shares rose by 13.13% to $37.39 during premarket trading [7] - Despite a 41% decline in stock price over the last six months, analysts view recent weakness as a compelling long-term entry point [6][7]