Hinge Health, Inc. Class A

Ladies and gentlemen, thank you for joining us and welcome to the Hinge Health first quarter 2026 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 nine to raise your hand. and star six 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 first quarter 2026 earnings call. I'm Bianca Buck, Head of Investor Relations. With me on the call are Daniel Perez, our co-founder and CEO, and James Budge, our CFO. Our president, Jim Pursley, is spending this week advancing relationships with some of the largest state and local governments in the country, so can't be with us today. I want to thank everyone for joining us. 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 annual report on Form 10-K for the year ended December 31st, 2025. We expect to file our latest quarterly report on Form 10-Q in the coming days. 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 gap results. Reconciliations to the most comparable gap measures are included in our earnings release appendix. With that, I'll turn it over to Dan.

Thanks, Bianca. I'm excited to share our first quarter 2026 results. We had a strong start to the year, and let me tell you why. I'll cover three things today. First, our Q1 financial performance, which came in well above expectations. Second, the launch of our migraine care program, our first expansion beyond muscle and joint pain, and a proof point that our platform can automate care delivery across multiple conditions. And third, where we stand commercially as we head into the sales season. Then I'll hand it over to James to go deeper in our financials and updated guidance. After that, we'll take your questions. Let's get into it. We delivered strong results across all key financial metrics this quarter, outperforming our expectations and demonstrating the continued strength of our business. Starting with revenue, we generated $182 million in Q1, representing 47% year-over-year growth compared to 124 million in the first quarter of 2025. This performance came in well above our guidance range of 171 to 173 million, showing the continued strong demand we're seeing across our client and member base. Our last 12 months calculated billings reached $770 million, up an impressive 52% from $507 million in the prior year period, reflecting the continued expansion of our member base and strong engagement with our platforms. On profitability, we achieved a gross margin of 85%, demonstrating continued care team and hardware efficiency as we scale our platform. And our operating margin was 25%, generating $46 million in operating income, exceeding our guidance range of 30 to 32 million for the quarter. Our free cash flow performance was excellent once again. At 42 million, it was 10x higher year over year for a free cash flow margin of 23%. These are strong numbers, and they reflect something important. Our business is scaling efficiently. Our AI and automation investments are driving real operating leverage. We're serving more members, delivering improved outcomes, and reducing costs for clients, all while expanding margins. That's the triple aim in action, and it's also what makes this model durable in a world where every company is being asked what AI means for their business. For us, AI is an accelerant, helping us better deliver the triple aim whilst building a uniquely efficient business. We've spent over a decade building the number one rated digital MSK app, leveraging data from the millions of members we served to develop technology that automates over 95% of clinician hours associated with traditional PT. Combine that with our distribution, almost 3,000 clients, 60-plus health plans, PBMs, TPAs, and ecosystem partnerships, and we have a double-walled moat. Advanced platform capabilities on one side, difficult to replicate commercial reach on the other, and frankly, in the age of AI, when things are easier to build than ever, proprietary data and preferential access to clients is a recipe for outsized returns. James will unpack the financials in more detail shortly, including our raised guidance for the year. Now let me shift to product and an expansion I've been waiting a long time to talk to you about. 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. But here's the thing. We've spent years building a unified platform for our core technical and clinical capabilities, from enrollment to treatment, outcomes collection, member engagement, nerve stimulation, and more. Combined with a leading go-to-market motion, we're well-positioned to extend into adjacent conditions. This quarter, I'm excited to share that we're launching our Migraine Care Program. Migraine is a form of chronic pain that shares neurological roots with the neck and spine conditions we already treat. The nerves in the neck and head converge in a shared pain processing center. So not surprisingly, roughly 75% of people with migraine also have MSK pain. And our existing neck program members have already reported fewer migraine days and lower medication usage simply from engaging with our existing product. the scale of the problem is massive. One in six American adults has migraine and the prevalence rate is twice as high for women. On average, migraine sufferers drive more than $16,000 in annual healthcare spend over double that of people without migraine. And nationally, migraine costs US businesses an estimated $78 billion each year and drives absenteeism and reduced productivity. Our migraine care program delivers three things. First, rapid drug-free pain relief using our groundbreaking neuromodulation device, ENZO. What's more, we just received 510K clearance from the FDA to extend ENZO into migraine care. This means for many people, we could deliver drug-free migraine relief in minutes. Second, AI-powered tracking that helps members identify personal triggers across environmental, lifestyle, and dietary factors. And third, proactive prevention through exercise therapy and clinically proven lifestyle guidance from our care teams, designed to reduce both the frequency and severity of attacks. Our migraine care program will roll out later this month. The client response has been overwhelming. In just a few weeks, we've had over 125 clients adopt the program representing more than 2 million eligible lives. Time and again, our clients mentioned that they themselves or a family member or someone they know is afflicted with migraine. We expect revenue contribution to be minimal this year, with a more meaningful impact beginning in 2027. But the real significance is what this demonstrates. We didn't come this far with digital physical therapy to stop at digital physical therapy. Migraine is a compelling data point in the broader applicability of our platform. The clinical overlap is strong, our capabilities translate directly, and the speed of client adoption, over 2 million lives approved within weeks, underlines the credibility we've built with our clients and partners. This is exactly the kind of innovation that gets us excited about the decades of work ahead. We're building infrastructure to automate healthcare delivery across multiple conditions. Migrant is our next step, but it won't be the last. With that, let me now speak to our commercial progress. As many of you know, our sales cycle follows a predictable seasonal pattern. The first half of the year is primarily focused on building our pipeline and nurturing prospects. And we typically close the majority of new clients during the second half of the year as employers finalize their benefits decision for the following year. This quarter, we created substantially more pipeline compared to Q1 2025, which gives us confidence as we look ahead to the back half of the year. The interest level from prospects continues to be strong, and we're seeing good momentum across our client verticals and markets. Our investments in the SMB space are also paying off, where we're seeing substantially more pipeline generated in that category than in years past. We also continue to win at record rates, and the competitive takeaway trends we saw last year have also persisted, which speaks to the strength of our platform and the value proposition we're delivering to clients. Our Hinge Select offering is also seeing positive momentum. We ended Q1 with 4,100 provider locations, and we're also thrilled to share that we recently expanded Hinge Select access through one of our national PBM partners and three of the five largest national health plans by Self-Insured Lives. We expect this to help accelerate client adoption during our sales season in the second half of the year. Well, I don't want to get ahead of ourselves. The fundamentals we're seeing gives us good reason to be optimistic. We expect the combination of strong pipeline development, solid win rates, and the added value we can now offer through our migrant care and HINCHLAG programs to position us well for the foreseeable future. With that, let me turn it over to James.