Hims & Hers Health, Inc.

What they do

Hims & Hers operates a digital health platform that facilitates telehealth consultations, electronic prescriptions, and cloud pharmacy fulfillment. The company offers access to prescription generic, brand-name, and compounded medications, plus over-the-counter drug, device, cosmetic, and supplement products. Its wholly-owned pharmacies fulfill the majority of prescriptions, and it also sells white-labeled products through retail partnerships.

Revenue drivers

• United States revenue — Domestic revenue was $621.8 million in Q2 2026, up 16% year-over-year, representing about 82% of total quarterly revenue.
• Rest of World revenue — International revenue reached $131.4 million in Q2 2026, up 1,641% year-over-year, driven by the Eucalyptus acquisition, and now contributes about 17% of total revenue.
• Subscriber base — Nearly 2.9 million subscribers at end of Q2 2026, up 19% year-over-year, with monthly revenue per average subscriber of $92, up 21% year-over-year.

Recent performance

Q2 2026 revenue was $753.2 million, up 38% year-over-year, but gross margin fell to 64% from 76% and the company reported a net loss of $86.3 million versus net income of $42.5 million a year earlier. Adjusted EBITDA was $60.3 million, down from $82.2 million. Operating cash flow was negative $35.9 million in Q2, and free cash flow was negative $68.2 million. For the six months ended June 30, 2026, total revenue grew 20% to $1.36 billion.

Strategy

Management is focused on re-accelerating domestic revenue growth, which it expects to continue through the second half of 2026, while expanding internationally after acquiring Eucalyptus. The company is investing in a doctor-led AI clinical engine to enhance the customer experience and improve efficiency. It also aims to make care more affordable while expanding platform reach, and reiterates its 2030 targets of at least $6.5 billion in revenue and $1.3 billion in Adjusted EBITDA.

Risks

• Growth sustainability — Rapid growth may not be sustained, and quarterly results could fluctuate, leading to missed analyst expectations.
• Profitability pressure — The company swung to a net loss in Q2 2026, and gross margin declined significantly, raising questions about future profitability.
• Regulatory exposure — Evolving healthcare, privacy, and consumer protection laws could limit marketing activities or the scope of offerings, harming the business.
• Customer acquisition dependency — If the company cannot efficiently market to new customers or retain existing ones, its growth and results of operations could be adversely affected.

Outlook

Management raised full-year 2026 revenue guidance to a range of $3.1 billion to $3.3 billion and updated Adjusted EBITDA guidance to $275 million to $325 million. They expect domestic business to keep accelerating in the second half of the year, driven by investments in AI and technology. The company also reaffirms its long-term target of at least $6.5 billion in revenue by 2030.