A caller asked for Jim Cramer's long-term thoughts on Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) during the lightning round of the September 14 episode of Mad Money. He replied: They have a good model. They remind me of Hinge, not exactly, but in just this kind of discreet good model will make money.
And I think you're right. I think you should hold on to it. The comparison comes as both companies are growing, but Hinge Health, Inc. (NYSE:HNGE) is expanding at a much faster rate.
Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) reported second-quarter revenue of $670.5 million, up 13.7% year over year, while adjusted EBITDA rose 8% to $95.4 million. CEO Jeff Shaner said the second-quarter results demonstrated "the momentum across Aveanna and our ability to consistently deliver sustained year-over-year growth." The company raised its 2026 revenue guidance to more than $2.68 billion and adjusted EBITDA guidance to more than $365 million. Hinge generated $212.8 million of second-quarter revenue, up 53% from a year earlier, while free cash flow increased to $99.6 million from $32.6 million.
CEO Daniel Perez said the quarter's outperformance was "driven by continued high member conversion" and reflected Hinge's ability to "deliver a great experience, improve member outcomes and lower client costs." The company raised its 2026 revenue guidance midpoint to $858 million, representing 46% year-over-year growth. Aveanna Healthcare Holdings Inc.'s (NASDAQ:AVAH) private-duty-services business is facing margin pressure. PDS revenue increased 14.0% in the second quarter, but PDS cost of revenue rose 20.1%, pushing the segment's spread rate down 11.1% to $12.88 from $14.29.
The company attributed the higher cost-of-revenue rate primarily to higher caregiver labor costs, including the pass-through of reimbursement-rate increases, and higher general and professional liability reserves. It also had approximately $1.32 billion of term-loan principal outstanding at July 4, while net interest expense totaled $54 million during the first six months of 2026. The debt burden adds a financing cost to a business already dealing with higher labor and liability expenses.
Hinge Health, Inc.'s (NYSE:HNGE) risks are different. Client contracts through partners accounted for 85% of revenue in the first six months of 2026, while HCSC, Elevance and Aetna accounted for 15%, 13% and 10%, respectively. Hinge says a substantial portion of its client relationships are contracted through a limited number of health plans and other partners, and that losing those relationships could materially affect its business.
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