Hinge Health, Inc.HNGE

Hinge Health, Inc. Earnings Per Share Disclosure

10-KFiled Mar 3, 20262 min read
Net Loss Per Share
The Company computes net loss per share utilizing the two-class method required for participating securities. The two-class method determines net loss per share for each class of common stock and participating securities according to dividends declared or accumulated and participation rights in undistributed income. The rights, including the liquidation and dividend rights, of the holders of the Company’s Class A common stock and Class B common stock are identical, except with respect to voting. As a result, the basic and diluted net loss per share for all shares of Class A common stock and Class B common stock are the same and therefore presented on a combined basis.
The following table presents the reconciliation of the numerator and denominator for calculating basic and diluted net loss per share (in thousands, except per share data):
Year Ended December 31,
202520242023
Numerator:
Net loss$(528,261)$(11,933)$(108,141)
Adjustment to reflect deemed contribution from Series D and Series E redeemable convertible preferred stock extinguishment (1)
104,174 — — 
Net loss attributable to common stockholders$(424,087)$(11,933)$(108,141)
Denominator:
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted54,57713,55813,017
Net loss per share attributable to common stockholders, basic and diluted$(7.77)$(0.88)$(8.31)
(1)As discussed in Note 8, Redeemable Convertible Preferred Stock, the Company has concluded that transactions contemplated by the Stock Repurchase Agreement resulted in a modification which should be accounted as an extinguishment transaction. This extinguishment was treated as a deemed contribution for the purpose of calculating net loss attributable to common stockholders.
Certain potentially issuable shares have been excluded from the calculation of diluted net loss per share during the years ended December 31, 2025, 2024, and 2023 because their inclusion would have been anti-dilutive (in thousands):

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesRevenuePP&EGoodwill & IntangiblesLeasesSegmentsCommitmentsNew Standards