Hims & Hers Health (HIMS) Earnings Date & Reports

Key Takeaways

• Second quarter 2026 revenue rose 38.2% year over year to $753.2 million, exceeding consensus expectations of roughly $698.9 million.
• Diluted earnings per share (EPS) came in at a loss of $0.37, well below the approximately breakeven consensus estimate, as restructuring and product-mix costs weighed on profitability.
• Gross margin contracted to 63.8%, down from 76.4% a year earlier, reflecting the company's shift toward lower-margin branded GLP-1 weight-loss products and international expansion.
• Subscribers grew 18.5% to about 2.9 million, while monthly online revenue per average subscriber climbed 21.1% to $92.
• Management raised full-year 2026 revenue guidance to $3.1 billion–$3.3 billion and issued third-quarter revenue guidance of $880 million–$900 million.

Earnings Context and Why It Matters

Hims & Hers Health has become one of the most closely watched names in the direct-to-consumer telehealth space, and its second quarter 2026 report lands at a pivotal moment. The company is pivoting its U.S. weight-loss business from compounded medications toward branded GLP-1 (glucagon-like peptide-1) therapies, a strategic shift that is accelerating revenue growth while compressing margins. With subscriber counts and spending per customer still expanding rapidly, investors are weighing the durability of top-line momentum against the near-term profitability trade-offs of the transition. How the market interprets this balance will shape sentiment around the stock heading into the second half of the year.

Reported Results

For the second quarter of 2026, Hims & Hers Health reported total revenue of $753.2 million, an increase of 38.2% from $544.8 million in the same period a year earlier and above the consensus estimate of approximately $698.9 million. U.S. revenue rose 15.7% to $621.8 million, while rest-of-world revenue reached $131.4 million, reflecting the company's growing international footprint.

The company posted a net loss of $86.3 million, or $0.37 per diluted share, compared with net income of $42.5 million, or $0.17 per diluted share, in the prior-year quarter. The loss missed consensus expectations by a wide margin. Gross margin contracted to 63.8% from 76.4% a year earlier, and operating expenses increased 48.4% as the company invested in branded weight-loss offerings, technology, and international expansion. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $60.3 million, representing an 8% margin.

On the operating front, subscribers reached approximately 2.9 million, up 18.5% year over year, and monthly online revenue per average subscriber rose 21.1% to $92. Management raised its full-year 2026 revenue outlook to $3.1 billion–$3.3 billion and guided third-quarter revenue to $880 million–$900 million.

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Market Reaction and Investor Sentiment

Investor reaction to the second quarter 2026 results underscored the tension between rapid growth and deteriorating profitability. The revenue beat and raised guidance demonstrated strong demand, but the sharp decline in gross margin and the wider-than-expected loss highlighted the cost of the company's transition toward branded weight-loss products. Following the report, sentiment remained cautious as the market reassessed how quickly improved scale and operational efficiencies might restore earnings leverage. The mixed message, faster growth paired with near-term margin pressure, left investors focused on whether retention, cross-selling, and cost discipline can eventually close the gap between revenue expansion and bottom-line performance.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors will be watching whether Hims & Hers can sustain its elevated revenue growth while gradually repairing margins. The company's third-quarter revenue guidance of $880 million–$900 million implies roughly 47% to 50% year-over-year growth, but the trajectory of gross margin will be just as important as the top line. The branded GLP-1 assortment is carrying lower margins than the legacy compounded business, so the pace of mix normalization, pricing, and fulfillment efficiency will be central to the profit outlook.

Subscriber economics also merit close attention. Monthly online revenue per average subscriber rose to $92, a sign that richer product assortment and weight-loss uptake are driving higher monetization. The key question is whether that spending per customer can be sustained through improved retention and cross-selling into adjacent specialties such as dermatology, mental health, and sexual health.

Finally, the international business and the planned acquisition of Eucalyptus remain important catalysts. Rest-of-world revenue has become a meaningful contributor, and successful integration of acquisitions could broaden the company's global reach. Investors should monitor execution costs, regulatory developments in the telehealth and compounded medication space, and the company's path toward its long-term 2030 targets for revenue and adjusted EBITDA.

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