Hims & Hers (HIMS) Q1 FY26 earnings call: guidance and Q&A

What is the contribution dollar profile for a branded weight loss customer versus a legacy compounded customer? And how much of the full-year guide change is due to the weight loss pivot versus the rest of the business?

On a dollar basis, branded and compounded products are roughly comparable. The strategic pivot in weight loss has significantly expanded the addressable market and driven unprecedented demand, leading to the elevated guide. This demand also draws interest to other specialties, enabling cross-selling.

“On a dollar basis, the 2 are roughly comparable. And so I think as part of the strategic pivot, one of the things that we've always held constant that we feel is necessary for successful platform is really bringing a broad set of assortment that's available for consumers.”

asked by Cory Carpenter · answered by Yemi Okupe

How far along is Hims & Hers in terms of readiness for the peptide market if FDA reclassifies in July, and how is the opportunity sized internally?

Hims & Hers aims to be 'best in market' for peptides, not necessarily first. The team is actively preparing all critical elements, including validated supply chains and clinical protocols, awaiting FDA clarity in July and later in the year. The demand for peptides appears extremely large, driven by a broader consumer trend towards proactive and preventative health, similar to labs, testosterone, and menopause.

“I've never believed strategically it was critical for us to be first to market in any category. And I think that's going to be especially true when it comes to the peptide category. I think what's most critical is when we come to market we are best in market.”

asked by Maria Ripps · answered by Andrew Dudum

How much further could gross margins compress, and what gives confidence in the implied high incremental EBITDA margins in the back half of the year?

Gross margins are expected to see a couple of points of degradation over coming quarters due to scaling lower-margin specialties and international markets, but the overall financial equation of driving strong absolute EBITDA and free cash flow remains. Back-half EBITDA confidence comes from the compounding effect of monthly cohorts (due to 1-month shipping cadences), G&A leverage as investments normalize, and continued marketing efficiency gains from stronger retention and cross-sell.

“I think we would expect to see, probably over the coming quarters, a couple of points of degradation on gross margins. That said, I think similar to prior periods, where when we focused on developing a leadership position to ultimately take those benefits and leverage them to drive economies of scale, I think this is a similar playbook to like what we've done in the past.”

asked by Mark Stephen Mahaney · answered by Yemi Okupe

Why is revenue guidance up but EBITDA lowered, and what's the longer-term gross margin outlook given the current compression?

The revenue increase reflects the immense opportunity and the priority to invest in establishing market leadership in the U.S. and globally, even if it means more flexible EBITDA. The company aims to drive strong absolute EBITDA and control cash flow while building this leadership. Gross margin volatility is expected, but the long-term financial equation of driving strong absolute EBITDA and cash flow generation has not changed.

“So I think we've seen an immense opportunity in front of us. And so both in the U.S. as well as globally, we're going to continue to invest to effectively establish a leadership position because we've observed in the past when we're able to do that, we're able to pass value back to consumers from both leveraging the technology that Mo went through in terms of the richer data sets but we're also able to set up an industry-leading cost structure that enables us to extend margins or pass value back to consumers.”

asked by Craig Hettenbach · answered by Yemi Okupe

How will AI change the user experience and incorporate feedback loops, and what is the approach to wearables (build vs. partner)?

AI will create a multi-agent model to optimize, personalize, and drive better patient outcomes at each step of the journey, leveraging the 'thousands of opinions' from accumulated data for faster, more personalized care and engagement. This will lead to higher retention and deeper patient relationships. For wearables, Hims & Hers is evaluating both building its own devices and partnering with existing players, aiming for seamless integration of data to enhance care and potentially offer affordable, integrated hardware experiences.

“There's this concept in health care of a second opinion. And I tell my team all the time, the models we're building right now and the data layer we're building across the stack should enable it such that any patient anywhere in the world can get 1,000 opinions at the same time, right, through the holistic data of all of our 9 going on 10 years of experience.”

asked by Justin Patterson · answered by Andrew Dudum