Hinge Health, Inc. Class A

Ladies and gentlemen, thank you for joining us and welcome to the Hinge Health Third Quarter 2025 Earnings Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please raise your hand. If you have dialed in to today's call, please press star 9 to raise your hand and star 6 to unmute. I will now hand the conference over to Bianca Buck, Head of Investor Relations. Bianca, please go ahead.

Good afternoon and welcome to Hinge Health's third quarter 2025 earnings call. I'm Bianca Buck, head of investor relations. With me on the call are Daniel Perez, our co-founder and CEO, Jim Persley, our president, and James Budge, our CFO. I want to thank everyone for joining us today. We'll be walking you through our Q3 performance and sharing key updates on our product innovations and commercial momentum. As a reminder, this conference call is being recorded. All relevant materials are available on the investor relations section of our website. Today's discussion will include forward looking statements, which are subject to various risks, uncertainties and assumptions. These statements reflect our current views and expectations regarding future events, including expected performance of our business, future financial results and growth strategies. While these statements represent our good faith judgment and beliefs, actual results may differ materially from those projected or implied. We undertake no obligation to update any forward-looking statements except as required by law. For a detailed discussion of the risks, please refer to our SEC filings, including our most recent quarterly report on Form 10-Q. All income statement financial measures discussed today are non-GAAP, except for revenue, which is GAAP. These measures should be viewed in addition to, and not as a substitute for, our GAAP results. Reconciliations to the most comparable GAAP measures are included in our earnings release appendix. With that, I'll turn it over to Dan.

Thanks, Bianca, and good afternoon, everyone. Q3 showed what our strategy is built to do. automate care delivery to improve outcomes, experience, and reduce costs, all while underpinning a strong business. We'll cover five topics today. Firstly, our results. I'll give you a high-level view of the quarter and the momentum in our core metrics. Second, I'll share key product updates, particularly our AI initiatives transforming how we deliver care to our members. This includes our AI care assistant, Robin, our new movement analysis capability, and how we're using AI to drive efficiency across our entire organization. Third, Jim will cover sales season progress and updates on Hinge Select, our high performance provider network. From there, James will walk you through the detailed financials and our updated guidance for the remainder of the year. And lastly, I'll wrap up with thoughts on why we're so confident about the path ahead before we open it up for your questions. Let's dive in. First, let me start with the numbers that really tell the story of our momentum in automating care delivery. We delivered $154 million in revenue for Q3, representing 53% year-over-year growth. Our last 12 months calculated billings reached $624 million, up 50% compared to the same period last year. These results demonstrate the strength of our current execution and highlight the incredible opportunity ahead in automating the largest services industry in the United States, healthcare. Our operational efficiency improved substantially year over year. Gross margin was 83% this quarter, up from 79% in Q3 of last year, reflecting the scalability of our technology-driven care model. Operating margin reached 20%, a significant improvement from negative 4% in Q3 last year, showing how quickly our investments in automation and AI are driving meaningful leverage across our growing business. And notably, we generated $81 million in free cash flow this quarter compared to $28 million in Q3 of 2024. This represents a free cash flow margin of 53%, highlighting the strength of our business model and operational efficiency. Now, before I dive into our product updates, I want to remind everyone of our core mission. We're building technology to automate the delivery of health care, starting with musculoskeletal conditions. This quarter, we reached an important milestone, surpassing 1.5 million lifetime members who have trusted us with their care. Everything we do is centered around the triple aim, using technology to transform outcomes, experience, and costs in healthcare. To that end, I'm excited to share three key product areas where we've made significant progress this quarter. First, our always-on AI care assistant, Robin, that's transforming how we support our members. Think of Robin as a smart and increasingly capable companion that's available 24-7 to help members navigate their care. Now, a typical care journey for back or joint pain isn't linear. People will have good days and bad. When someone experiences a pain flare up, Robin recognizes this through member reported data and immediately gathers important details, shares helpful resources, and alerts their physical therapist so care can be delivered faster. Beyond pain events, Robin will soon provide instant support, answer common questions, and proactively check in with members to keep them on track with their recovery. This isn't just convenience for our members, It's technology that delivers immediate support at the exact moment people need it most, while laying the infrastructure for an AI agent that doesn't just answer, it acts. For our clients, this allows us to drive higher member engagement, improved health outcomes, and therefore cost savings, which directly benefit Hinge Health through improved client retention, demonstrable ROI, and higher member enrollment yields. Secondly, we built the ability to perform an automated movement analysis using our TrueMotion computer vision technology. There are many measurement tools to track outcomes in MSK care. While valuable, almost all rely on subjective questions and are therefore self-report only. Our new movement analysis uses our advanced computer vision technology to capture joint angles, symmetry and endurance across a short battery of movements to produce hinge scores that are objective and comparable over time. Pairing these objective measurements with a few targeted questions gives clinicians and members a fuller and more actionable picture of their joint health. Members simply use the front facing camera on their phone and our technology does the rest. Finally, we're continuing to weave AI throughout our entire organization to drive efficiency and innovation. One example I'd love to highlight is how we've used AI to transform how we build our product. Gabriel, my co-founder, has been personally threading AI throughout our engineering team. I'm proud to say that we've won increased code output by 120% and pushed new features live three times faster in Q3 2025 compared to Q3 2024. Two, we've increased AI adoption among our engineers from around 20% in Q1 to close to 100% today. And finally, three, we've also seen a 32% improvement in developer experience scores from April through October. Our engineering team is not only more productive, they're happier, too. These improvements are already impacting our operating margin, and we're just getting started. With that, let me turn it over to our president, Jim, to discuss our market momentum.