Hinge Health inked a deal to acquire a digital gastrointestinal care management startup as it moves to broaden its business beyond musculoskeletal and migraine care.
Hinge Health plans to pick up Cylinder Health for $105 million in cash. The acquisition accelerates Hinge Health’s entry into one of healthcare’s largest underserved categories, executives said, and the company plans to launch an integrated gastrointestinal (GI) care program in 2027. The deal is expected to close in the third quarter.
With its expansion into GI care, the company is "following the same playbook" as it used for MSK and migraine care, Daniel Perez, co-founder and CEO of Hinge Health, told investors during the company's second-quarter earnings call Tuesday.
"We're identifying area of unmet clinical need and then applying technology to automate care delivery. GI checks all those boxes. Digestive health issues affect one in 4 U.S. adults and drive $135 billion in annual medical spend," Perez said during the earnings call. "Traditional care is fragmented and hard to access. Sixty-nine percent of U.S. counties don't even have a gastroenterologist. People cycle through primary care and urgent care visits without a clear treatment plan. We hear consistently from our clients that GI is a major challenge they're struggling to address."
Cylinder Health, founded in 2021, has 100 clients across two million lives, partnerships with two of the three largest pharmacy benefit managers (PBMs), and three of the top five health plans by self-insured market share, according to Hinge Health. The company has already treated over 150,000 people.
The acquisition will combine Cylinder’s clinical expertise and existing market footprint with Hinge Health’s AI-powered care model and technology platform to deliver support in a single app expected to launch in 2027, executives said.
The Cylinder acquisition will contribute approximately $7 million to $8 million in revenue in 2026, and "meaningfully more" in 2027 as Hinge Health integrates and scales the offering, James Pursley, Hinge Health president, said during the call. "We want to be clear: we're playing the long game in GI, and we'll be investing to ensure we can drive incredible outcomes while delivering a great experience and reducing costs for our clients," he told investors and analysts.
GI conditions are also highly comorbid with the MSK, pelvic floor, and migraine conditions Hinge Health already treats, he noted.
"They share the same gut-brain and central-sensitization mechanisms. A large share of the people we're already serving are also managing chronic digestive conditions, which makes this a natural extension of our care model," Perez said.
Hinge Health anticipates GI will have a "modest contribution" to this year's sales season with a broader rollout targeted for 2027, Perez noted.
"We also have established partnerships with two of the three largest PBMs [pharmacy benefit managers] and three of the top five national health plans. They've done great work reinventing the paradigm of care for GI, and we're excited to integrate their capabilities into our platform," he said.
Hinge Health, which launched in 2014 and went public more than a year ago, initially focused on virtual physical therapy. The company developed software combined with AI to automate physical therapy services for joint and muscle health, offering its services to health plans and employers. Hinge designed its platform to address a broad spectrum of MSK care, including acute injury, chronic pain and postsurgical rehabilitation. To address the automation of care, Hinge developed AI-powered motion tracking technology, a proprietary FDA-cleared wearable device called Enso and an AI-supported care team to deliver scalable and personalized MSK care.
In late April, the company announced its migraine care program as its first expansion into a new condition.
Hinge Health now works with 2,929 enterprise clients as of June 30, 2026, up 24% from 2,359 clients a year ago, the company reported in its Q2 financial results.
This acquisition also reflects Hinge Health's strategy to "move with urgency" to further solidify and extend its position in the market, while also developing several new products to scale and automate other aspects of care, Perez said.
"That's one of the many reasons that gives us confidence in the durability of our revenue, and because we can build these products efficiently and sell them through the same commercial motion and the same distribution channels, it becomes a compounding advantage. Multi-product isn't just a yield lever; it is a moat. We're extending our platform to address multiple high-impact conditions, and we're doing it in a way that drives all aspects of the triple aim: better outcomes, better experience and lower cost," he noted.
“GI care is a growing need across our member population,” said Jessica Palacios, Associate Director, System Benefits Administration at The Texas A&M University System. “Our members engage with Hinge Health across multiple condition areas, so adding GI care within that same experience is a natural extension of a partnership that is already working and that our members trust.”
William Blair analyst Ryan Daniels noted the Cylinder Health deal is a "logical extension" of Hinge Health's business "as GI issues effect nearly 25% to 30% of all U.S. adults; are common comorbidities in individuals with back, joint, and pelvic issues; and drive nearly $135 billion in annual medical spending—thus presenting another larger addressable market for Hinge to pursue."
In an analyst note, Daniels noted that while the backdrop for healthcare AI and software remains challenging due to AI disruption narratives, Hinge Health "continues to execute and produce pristine results on both the top and bottom lines." "Moreover, we continue to believe that Hinge has market leadership with significant advantages both on the product and go-to-market fronts, thus translating into a durable competitive position in an attractive market for virtual MSK solutions. With this in mind, we believe Hinge Health is well positioned to capitalize on a strong demand environment for its offerings, as employers seek cost-savings solutions that also augment the employee experience," Daniels wrote.
Hinge Health raised its full-year revenue and profitability expectations for the remainder of 2026 as the company reported another strong quarter and further expands its business beyond muscle and joint pain. The company now expects full-year revenue to grow to $856 million, with $860 million on the high end of its guidance, reflecting year-over-year growth of 46% at the midpoint.
The company also raised non-GAAP income from operations guidance to be between $236 million and $244 million, reflecting year-over-year growth of 101% and non-GAAP operating margin of 28% at the midpoint.
Hinge Health brought in second-quarter revenue of $213 million, up 53% from $139 million in Q2 2025. The company posted second-quarter adjusted earnings of 59 cents per share. Hinge Health's GAAP income from operations increased to $40 million compared to GAAP loss from operations of $581 million in Q2 2025. And, non-GAAP income from operations tripled from $26 million a year ago to $62 million in the latest quarter.
The company's Q2 revenue beat Wall Street analysts' expectations of $201.5 million for the quarter. Analysts expected adjusted earnings of 62 cents in Q2.
The company's free cash flow tripled to $100 million compared to $33 million a year ago.
Hinge Health reported that billings for the last 12 months increased 52% year-over-year to $862 million, compared to $558 million for the same period a year ago.
"We feel very good about where Hinge Health is headed, not just for the rest of 2026, but for many years ahead," Perez told investors. "First, the fundamentals of our business have never been stronger. We're growing revenue 45% this year while expanding margins and generating significant free cash flow. That is a rare combination at our scale, and it speaks to the quality of the model we have built and the discipline of our team."
As the company adds new healthcare programs, it is making the platform more relevant to members, more valuable to clients, and more durable over time, he noted.
"The broader environment continues to play to our strengths. Employers are under pressure to drive more value from healthcare spend. Buyers are asking tougher questions and looking for proof, not promises. We think that favors companies that can deliver measurable outcomes, real ROI, durable engagement, and a care experience that works in the real world," Perez said.