Forensic Analysis · Technology / Software · as of Jun 27, 2026
Hinge Health, Inc. (HNGE)
A forensic read on Hinge Health, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Distress
Financial health
-7.5
Altman Z-score
Clean
Earnings quality
4
Forensic signals
-138.7%
ROE
$6.1B
Market cap
Hinge Health, Inc. earns a C (Mixed — selective) forensic quality grade, and its Altman Z-score is -7.5, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+38.1%Accruals ratio.Net operating assets grew +38.1% relative to their average in FY2025 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -489% of net operating assets.
-248%Return on invested capital.Return on invested capital is -248% and slipping from -20% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+159.6%/yrShare-count dilution.Diluted share count changed +319% over the last 2 years to FY2025 (+159.6%/yr). The count is GROWING — existing holders are being diluted. That's ~159.6% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~319%.
109% of revStock-based comp load.Stock-based compensation ran 109% of revenue and 377% of free cash flow in FY2025 — about $11.78 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
Key fundamentals
Net Margin-89.9%
Free Cash Flow$170.7M
Latest Revenue$587.9M
Return on Equity-295.7%
Revenue Growth YoY+50.6%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Hinge Health, Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about HNGE's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown