Hinge Health announced that it has expanded its public‑sector presence, now serving employees of 24 state employee health plan clients across the United States. The new contracts bring the company’s digital musculoskeletal (MSK) care platform to more than 300 public‑sector organizations, including state governments that manage employee health benefits, and will cover over 5 million individuals.
The expansion follows a strong Q4 2025 earnings season in which Hinge Health reported revenue of $170.7 million, a 46% year‑over‑year increase, and full‑year 2025 revenue of $587.9 million, up 51% from the prior year. Non‑GAAP income from operations reached $48.0 million in Q4 and $119.5 million for the full year, while gross margins were 85% in Q4 and 83% annually. Operating margins were 28% in Q4 and 20% for the year. Management guided for Q1 2026 revenue of $171 million to $173 million, a 39% year‑over‑year rise, and full‑year 2026 revenue of $732 million to $742 million, a 25% increase.
MSK conditions are a leading driver of healthcare costs, and public‑sector organizations are prioritizing early intervention, accessibility, and evidence‑based care. Hinge Health’s platform combines AI‑powered motion tracking, wearable devices, and a clinical care team to deliver personalized, outcome‑focused MSK care. The company’s proprietary data and integrated care model position it to meet the fiscal and health‑wellness mandates of state employee plans.
"We’re proud to partner with forward‑thinking organizations to deliver a higher standard of care that addresses their dual mandate of fiscal responsibility and employee health and wellbeing," said Jim Pursley, President of Hinge Health. Co‑founder and CEO Daniel Perez added, "We are confident in our ability to continue automating care delivery, sustain our position as a leader in digital musculoskeletal care, and drive attractive growth and increased margins in 2026."
The public‑sector expansion is expected to accelerate Hinge Health’s revenue growth and margin expansion. The company’s guidance for 2026 reflects confidence that the new contracts will contribute to the projected 25% revenue increase and support the company’s high gross margins. The expansion also diversifies Hinge Health’s client mix, reducing reliance on private‑sector employers and positioning the company to capture a larger share of the public‑sector MSK market.
While Hinge Health faces competitive pressure from other digital MSK providers such as Sword Health and Kaia Health, its focus on outcomes, data‑driven care, and strong financial performance mitigate risk. The company’s improving profitability and cash‑flow generation suggest that the expansion will strengthen its competitive position and support continued investment in technology and clinical services.
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