Hims & Hers Health, Inc. (HIMS) Earnings & Analysis

Latest quarter

Hims & Hers reported Q2 FY2026 revenue of $753.2 million, up 38.2% from $544.8 million a year earlier and above the $690.2 million consensus. Adjusted earnings per share were −$0.10, below the consensus estimate of −$0.07. On a diluted basis, the company reported a loss per share of −$0.37, compared with earnings of $0.17 a year earlier.

The filing attributed U.S. revenue growth primarily to Hers, including an expanded range of branded weight-loss offerings. It said international growth was driven mainly by acquisitions, including Eucalyptus, which closed in June. The filing also said subscribers rose to approximately 2.9 million at quarter-end from approximately 2.4 million a year earlier.

Hims & Hers reported a gross margin of 63.8%, down from 76.4% a year earlier. The filing attributed the decline partly to weight-loss offerings with shorter shipping intervals and higher fulfillment costs, as well as international growth and acquisitions. CFO Yemi Okupe said operating cash flow was negative $36 million and free cash flow was negative $68 million in the quarter, as branded weight-loss offerings increased working-capital demands.

Revenue also exceeded the company’s prior Q2 guidance of $680.0 million to $700.0 million.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CFO Yemi Okupe said the expanded branded weight-loss assortment was a driver of domestic growth, as subscriber additions offset revenue-recognition headwinds from the move to monthly shipments. Asked about the quarter’s performance and retention, he said demand in weight loss was a major contributor to the revenue beat and gave the company confidence to raise its annual revenue outlook.

Okupe said branded weight-loss products and international revenue were becoming a larger share of the business, and he expected gross margins to remain below historical levels. He said adjusted EBITDA was $60 million in the quarter, excluding approximately $81 million in acquisition, restructuring and legal contingency costs. Okupe said the FTC filed a complaint on July 29 and that Hims & Hers intended to defend its position.

On pricing, Okupe said the company expected to use some efficiency gains to offer weight-loss customers lower prices and/or additional tools by year-end. Asked about investment priorities, he said savings could also support expansion in international markets, subject to the company’s capital-allocation standards. He said the company expected to resume free cash flow generation in the second half of the year.

CEO Andrew Dudum said an AI-supported care system initially deployed in women’s weight loss increased patient messaging with care teams while reducing nonclinical work. He said the company planned to extend the experience to new offerings, including testosterone treatments. On competition, Dudum said Hims & Hers’ infrastructure and scale supported entry into more complex categories; he also described partnerships with drugmakers as a way to broaden its weight-loss offerings.

For the second half, Okupe said the accumulation of monthly weight-loss customer cohorts should contribute to U.S. revenue and adjusted EBITDA. Asked about the longer-term margin profile, he said he was not yet prepared to discuss 2027, instead pointing to the company’s focus on cash flow and adjusted EBITDA dollars.

Guidance

Hims & Hers raised its FY2026 revenue guidance to $3.1 billion to $3.3 billion and updated its adjusted EBITDA outlook to $275.0 million to $325.0 million. Okupe said the outlook preserved flexibility to increase investment as opportunities arise, and that demand for weight-loss offerings helped give the company confidence to raise its revenue forecast.