Hinge Health, Inc.HNGE

Hinge Health, Inc. Segments Disclosure

10-KFiled Mar 3, 20262 min read
Segment Information
Operating segments are defined as components of an enterprise where separate financial information is evaluated regularly by the chief operating decision maker (“CODM”), which the Company has identified as being the CEO, in deciding how to allocate resources and assessing performance. The Company operates in one operating segment and one reportable segment. The Company’s CODM allocates resources and assesses performance at the consolidated level.
The CODM uses consolidated net loss as the measure of profit or loss in order to identify underlying trends in the performance of the business and to allocate resources and assess performance. The Company’s objective in making resource allocation decisions is to optimize the consolidated financial results. Consolidated financial forecasts and budget to actual results are also used by the CODM to assess performance and allocate resources, make strategic decisions related to headcount and incur capital expenditures.
The CODM reviews total assets as reported on the consolidated balance sheets. The CODM does not review segment assets at a level other than that presented in the Company’s consolidated balance sheets.
The table below presents the Company’s consolidated loss including significant segment expenses (in thousands):
Year Ended December 31,
202520242023
Revenue$587,860 $390,404 $292,730 
Less (add):
Excess and obsolete inventory charge (1)— 1,812 10,264 
Restructuring, acquisition and other expenses (2)5,351 9,138 — 
Stock-based compensation expense (3)643,009 739 1,645 
Other segment expenses (4)(644)(25,851)(21,995)
Cost of revenue (excluding 1,2,3, 4)98,735 87,524 87,743 
Research and development (excluding 2,3,4)89,709 99,345 109,564 
Sales and marketing (excluding 2,3,4)207,890 164,717 147,108 
General and administrative (excluding 2,3,4)72,071 64,913 66,542 
Net loss$(528,261)$(11,933)$(108,141)
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(4)Other segment expenses include other income, net, employer taxes related to stock-based compensation expense, amortization of intangible assets and provision for (benefit from) income taxes.
The Company currently sells its subscriptions to its customers and generates substantially all of its revenue in the U.S.
Long-lived assets consisted of intangible assets, property, equipment and software, net and right-of-use assets. Long-lived assets by geographical location are as follows (in thousands):
December 31,
20252024
United States$18,679 $18,128 
Outside the United States1,184 666 
Total$19,863 $18,794 

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesRevenueEarnings Per SharePP&EGoodwill & IntangiblesLeasesCommitmentsNew Standards