The cost of healthcare in the US is rising, with PwC estimating an 8.5% increase in group insurance medical costs in 2024, 2025, and projected for 2026. Amid this, Hinge Health is gaining attention for its virtual musculoskeletal therapy platform, reducing surgery needs, and lowering costs for insurers.

In its latest quarter, Hinge Health reported a revenue of $171 million, a 46% increase, and adjusted EPS of 49 cents, exceeding estimates. However, its stock-based compensation (SBC) of $643 million distorts free cash flow. Despite this, Hinge projects lower SBC going forward and expects a 25% revenue growth in 2026.

Hinge Health’s stock has a MarketBeat consensus price target of $57, suggesting a 35% upside. With a forward P/E ratio of 21x, Hinge’s AI-driven business model and proprietary data make it an attractive opportunity. However, its market cap of less than $4 billion could lead to substantial volatility in the market.

Read more at Nasdaq: Hinge Health’s AI Moat Might Be Its Patient Movement Data