TLDR
- Hims & Hers raised full-year revenue guidance to $3.1B-$3.3B, beating Wall Street’s $2.93B estimate
- Q2 revenue came in at $753.2M, topping estimates, but the company swung to a loss of $0.37 per share vs. a 5-cent loss expected
- HIMS stock fell nearly 7% in premarket Tuesday after dropping 5.5% in after-hours Monday
- Gross margins fell for the fourth straight quarter as costs surged, with total operating costs up 48% year-over-year
- The company faces ongoing restructuring charges as it exits compounded GLP-1 drugs and shifts toward branded weight-loss products
Hims & Hers Health raised its 2026 revenue guidance well above Wall Street expectations on Monday, but investors weren’t buying it. The stock dropped 5.5% in after-hours trading and fell nearly 7% in premarket Tuesday.
Hims & Hers Health, Inc., HIMS
The telehealth company now expects full-year revenue between $3.1 billion and $3.3 billion, up from its prior range of $2.8 billion to $3 billion. Q3 guidance of $880 million to $900 million also cleared analyst estimates of $792.2 million.
Q2 revenue came in at $753.2 million, beating the FactSet consensus of $698.9 million. The company also added more than 300,000 subscribers in the quarter.
$HIMS & HERS Q2’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $753.2M (Est. $700M) 🟢; +38% YoY
🔹 GAAP EPS: -$0.37
🔹 Adj. EBITDA: $60.3M (Est. $47.2M) 🟢; -27% YoY
🔹 Subscribers: 2,891; +19% YoYFY26 Guide:
🔹 Revenue: $3.1B-$3.3B (Est. $2.93B) 🟢
🔹 Adjusted EBITDA: $275M-$325M (Est.… pic.twitter.com/T2jFnAc3bv— Wall St Engine (@wallstengine) August 10, 2026
But the headline numbers weren’t enough to mask the damage underneath. The company posted a loss of $0.37 per share, far wider than the $0.05 loss analysts had penciled in.
Total operating costs surged 48% from a year ago. The cost of revenue more than doubled to $272.4 million, squeezing gross margins for the fourth consecutive quarter.
CFO Yemi Okupe acknowledged the pressure directly on an analyst call. He said gross margins would likely stay below historical levels as branded weight-loss products and international revenue make up a bigger slice of the business.
Margin Pressure Tied to GLP-1 Pivot
The cost story traces back to Hims’ strategic shift away from compounded GLP-1 medications. The company built a fast-growing weight-loss business on compounded semaglutide during the Wegovy and Zepbound shortage period, but that chapter is closing.
In March, Hims agreed to stop producing its own compounded GLP-1 drugs following a patent infringement lawsuit from Novo Nordisk. The company is now moving toward selling FDA-approved branded products instead, a shift that carries higher costs.
The company said it expects ongoing restructuring charges linked to the transition. It trimmed the top end of its adjusted EBITDA outlook for the year, even as revenue guidance moved higher.
Leerink Partners analyst Michael Cherny summed up the tension: “We still see a tough balance between spending to grow and growth, keeping our optimism limited.”
Legal Costs Add to the Pressure
Beyond the margin story, Hims recorded $47.5 million in nonrecurring contingency costs during the quarter. These are funds set aside for expected payouts tied to pending litigation.
That includes a lawsuit filed just over a week ago by the Federal Trade Commission and several U.S. states, accusing Hims of deceptive privacy practices, hidden billing, and making it hard for customers to cancel subscriptions. Hims dismissed the claims as designed “to generate headlines at our expense.”
CEO Andrew Dudum focused much of his commentary on the company’s new AI clinical engine, which he said is helping rebuild the consumer health experience. CFO Okupe credited AI-driven efficiencies and international momentum, including the acquisition of Australian telehealth firm Eucalyptus, for the guidance raise.
Barclays analyst Glen Santangelo said margins could improve in the second half. Hims is targeting $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030.
HIMS stock has lost roughly 2% so far this year.
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