(The “and Reddit” part first…a couple weeks ago @wpr101 and I started a subreddit: https://www.reddit.com/r/GrowthStockInvesting/ I just wanted to announce this as of course you’re all invited to join. We’re both Reddit shareholders and thought it would be cool to get more involved there as users / moderators. We’re hoping to have discussions there similar to the ones here on Saul’s. Nothing on Saul’s will change, btw…I think I’ll try posting my thoughts in both places…which leads me to Hinge Health…below is a post I made on Reddit last week after Hinge reported Q1 earnings. I thought they were a blowout! Hinge Health Q1 2026)
Hinge just crushed it!
In Q4 they had given a FY guide of 742m revenue (+26% Yoy) and 156m net income.
In Q1 they raised it to 804m revenue (+37% YoY) and – wait for it – 215m net income!
Clearly they know how to play the beat and raise game. Obviously they will raise again in Q2 and Q3, and then beat in Q4. It’s just a question of how much. I don’t imagine they’ll be able to do what they did here, but clearly growth will be over 40% and maybe even around 50% YoY going forward.
Even as I wrote that I was thinking…how on earth are they able to raise it that much? Here’s at least part of it: One big leading metric is LTM calculated billings which came in at 769.9m. Last quarter that was 671.4m. It’s not enough to say that this was their largest add ever. I need to show you the numbers:
Q3 2024: 49.1
Q4 2024: 50.6
Q1 2025: 39.5
Q2 2025: 61.4
Q3 2025: 55.8
Q4 2025: 47.2
Q1 2026: 98.5 (wow)
Anyway, I’m pretty glad they had such a huge quarter. Their initial FY guide was kind of meh at +26%, but raising to +37% immediately changes things! I had been trimming but I just added back a few shares in the after hours market today.
(Adding more as I post this here at Saul’s…I think it’s interesting that the market hasn’t had a stronger reaction to the quarter. I guess there’s still plenty of doubters with this business. The price seems pretty attractive to me…but I’m curious to hear what others think.)
Also as I now realize we haven’t discussed Hinge Health here before now…a little background:
Hinge Health is an app-based platform for physical therapy, and they also issue devices that can be used to soothe pain (and now migraines). They IPO’d on May 22, 2025, and when they announced their first public quarter back in August, I liked the story and the numbers and bought in. I’ve held ever since, but it’s never been exciting enough to bring to the board here…Thankfully Q1 changed that.
Hinge is also quite profitable, EPS was 49 cents and 45 cents in Q4 and Q1 respectively, and I believe that will expand with revenue throughout the remainder of 2026 and beyond. Today per SeekingAlpha analysts expect about 2.50 for the year, so they agree. And that would put fwd PE at about 22.
From what I can tell HNGE works alongside the healthcare system rather than trying to disrupt it like Teladoc.
I hope some of you will get interested and dive deeper and add your thoughts!
I started using HH a few years ago. It was being offered as an HR benefit at no additional cost to employees. I believe it is probably covered by most health plans as well if you don’t have it available as a benefit.
The app offers a set of short (7 - 15ish minute long) exercises focused on musculoskeletal care (e.g. core strength, back pain relief, shoulder stretches, etc.) The exercises are delivered as coaching videos walking you through doing the exercises, including demonstrations of how the exercises are done, and additionally can “watch” you perform the exercises and provide feedback (AI driven). Every day you get a “Daily Playlist” exercise which is customized based on what you have indicated what you want/need to work on (e.g. lower back pain). You are able to provide feedback on the exercises (e.g. too hard/easy). There is a gamification aspect too, with weekly goals, progress charting, and rewards. You are assigned a physical therapist and a health coach who proactively communicate with you and with whom you can also “book a visit” (I’ve never done this - I assume it’s an add-on cost and additional revenue stream).
I like the app and have found it beneficial for light impact strength training, flexibility, and pain relief. The low commitment of the exercise sessions, both in terms of time and equipment, makes it east to stick with it. As an added benefit they also send you a “free” yoga mat when you sign up, and a set of resistance bands after your first x number of completed sessions.
Thank you, Erik. It is really good to hear from a user of Hinge! Great to hear about the short exercises, gamification, option to get a therapist involved etc. I like that easy-to-access (“low commitment” as you say) kind of service, and it sounds like the quality is good enough to be useful to you. I didn’t know about the yoga mat…have they mentioned an Enso at all? (Maybe doesn’t apply to your type of pain, I have no idea.) Enso: An FDA-cleared, wearable pain relief device
I checked and could not find any references to Enzo inside the app. I did discover they also have a Breathing & Meditation section with exercises, similar to the way the core part of the app works. I also forgot to mention there is also an education component, with numerous articles on such topics as understanding pain, pain management, healthy eating, mental health, sleep tips, etc.
I should have mentioned in my prior post, I did take a small position in Hinge Health after reading your first two posts, Bear. I hadn’t even realized it was a public company!
I am not from the contributors here and my opinion might have less weight but I wanted share my user experience with the subreddit you and WPR created.
Here we don’t get disturbed by ads between topics, all information is well presented and the platform gives lots of choices to format the text you want to share.
Also very important - when there is a new comment here it goes on the top and you can be up-to-date very easily.
Whereas at the other place if there is a new comment for a specific topic - the topic does not pop-up above all, but you have to scroll down and find if eventually there is a new comment for the topic you are interested in. (Very important note - I am using the other place as a non-registered user, which could explain that behavior)
Shortly I find the board here much more convenient, simple and clean with better user experience.
Thank you and all contributors here and on the other place for the great community, devotion and your time!