HNGE Stock Forecast & Price Target

Hinge Health Inc. has demonstrated strong financial performance with an impressive revenue growth rate of 53.3% year-over-year, coupled with a 23-point expansion in adjusted operating margins, signaling robust operational efficiency. The company is on track for significant growth, with projections indicating a 25% year-over-year increase in client count for fiscal year 2025 and anticipated market share gains in 2026. Additionally, Hinge Health is poised to achieve an adjusted operating income margin of approximately 22.4% in the fourth quarter of 2025, reflecting positive trends in operating performance and member engagement.

Hinge Health Inc's management has indicated a notable reduction in adjusted R&D spending, decreasing from 23.7% of revenue in 3Q24 to 14.5% in 3Q25, which may hinder innovation and long-term growth potential. The company's forecast of a weak spending environment in 2H25, coupled with a projected sequential decline in membership and lower revenues, raises significant concerns about its financial health and growth trajectory. Furthermore, despite its current EBIT margins of 19%, future projections suggest mid-teens margins due to reduced marketing spending, indicating a challenging landscape for revenue generation and overall profitability.