Hinge Health (HNGE) Q1 FY26 earnings call: guidance and Q&A

How does Hinge Health view the market opportunity for its migraine program, and what were the findings on the effectiveness of Enso and the combined offering?

The migraine market is a natural extension of Hinge Health's vision to automate care, addressing a significant unmet clinical need with limited specialists. The company's existing platform, clinical evidence, proprietary data, hardware, and established distribution channels provide a strong competitive moat. Early trials showed 56% of participants experienced pain reduction from severe/moderate to mild/none with Enso, and Enso was 1.9x more likely to reduce pain versus placebo. FDA 510(k) clearance was received in April.

“Our vision is to use technology to automate care, transforming outcomes, improving experiences, and reducing costs. We've proven this in MSK. Over 2 million people served, 21 peer-reviewed papers with demonstrable outcomes, and the top-rated digital musculoskeletal app.”

asked by Saket Kalia · answered by Daniel Perez

How will the migraine program be priced compared to the physical therapy program, especially given its Enso-centric nature?

The migraine program will use the same usage-based billing model as the digital physical therapy program to keep it simple for clients. While Enso mediates many migraine treatment sessions, the program also includes exercise therapy for comorbid MSK pain. The goal is to have a bigger impact on clients by improving outcomes, experience, and lowering costs, with more usage leading to more billing opportunities.

“it'll be the same as our digital physical therapy model. We want to keep things as simple for our clients as possible. As James mentioned, it'll be our usage-based model, 80% of our books already on it.”

asked by Saket Kalia · answered by Daniel Perez

Given consistent yield improvements, what is the long-term view on where yields can reach, and will this depend on new programs like migraine?

The company believes physical therapy utilization is currently under-penetrated, with only about 9% of people seeing a PT annually, but a potential market of 12-15%. The current yield is trending slightly over 4%. Migraine expands the opportunity and de-risks growth by providing more avenues for engagement, but the core PT program itself has significant room for yield expansion.

“We are currently trending towards a little over 4% yield this year for additional physical therapy program. You can see where we're targeting long term at the low end, the 9% and we think we're expanding the TAM of people who could see a physical therapist.”

asked by Jailendra Singh · answered by Daniel Perez

Can you provide more details on the 'substantially higher' pipeline and the performance of the SMB segment?

The company is seeing broad-based interest across client segments. The SMB segment's pipeline in Q1 is up over 100% year-over-year, driven by new reps. Interest in expanded capabilities like the Migraine Program and Hinge Select is also improving the quality of conversations with prospects, allowing the company to solve more problems for clients. Sales cycles remain seasonal, with most decisions in the second half of the year.

“Our SMB segment, we recently hired several new reps, and they're delivering very strongly. The number of lives we've added to the pipeline in that segment in Q1 is up over 100% year-over-year.”

asked by Richard Close · answered by Daniel Perez

What incremental investments are required for the migraine program, and is the current Enso device ready for it?

The company spent several years platforming its tech infrastructure and capabilities, making them reusable for future products. Migraine largely leverages existing infrastructure (75% already built). The Enso device was adjusted for migraine, and FDA submission and clearance were key steps. Future products are expected to be similarly capital efficient. The resources needed for migraine were very efficient compared to building the digital PT program from scratch.

“The long pull specifically for migraine, whereas as you point out hardware, that is always slower than software. We had a head start, it was adjusted for migraine, our neuromodulation device.”

asked by Rishi Jaluria · answered by Daniel Perez

How are clients balancing upfront costs with ROI for the migraine program, and are they implementing clinical eligibility requirements or capping utilization?

Clients recognize the significant unmet clinical need and high costs associated with migraine, including pharmaceutical spend and productivity loss. They are dissatisfied with the status quo and see the program as a way to provide better care for their employees and dependents. There's a need for ROI, but also a recognition that members need access to better care. The conversations are productive, and the program has struck a nerve with many clients.

“When we speak to our employer customers, there's a recognition that, yes, their costs have gone up. In fact, I was in one conversation where they immediately pulled up their pharma spend and said this was one of their largest or fastest growing areas of spend.”

asked by Ryan MacDonald · answered by Daniel Perez