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    HIMS
    Earnings call· Jun 2026(Q2 FY26)

    Hims & Hers Health Q2 FY26 earnings call HIMS

    Aug 10, 2026 Source

    Executive summary

    Hims & Hers Health Q2 FY26 — Strong Subscriber Growth and Strategic AI Investments

    Hims & Hers delivered strong Q2 FY26 results, driven by significant subscriber growth and accelerated domestic revenue, fueled by expanded weight loss offerings and international expansion. The company is strategically investing in AI to enhance customer experience and operational efficiency, and expanding into complex categories like testosterone and peptides. Despite short-term gross margin compression and negative cash flow due to these investments and the Eucalyptus acquisition, management remains confident in its long-term financial ambitions, leveraging a strengthened balance sheet and global scale.

    Highlights

    7

    • Revenue grew nearly 40% year-over-year to more than $753 million.

    • Added 300,000 net new subscribers, bringing global subscriber base to nearly 3 million people.

    • Domestic revenue growth accelerated to 16% year-over-year in Q2.

    • Adjusted EBITDA was $60 million, representing an 8% margin, a 1-point improvement quarter-over-quarter.

    • International revenue increased over 17-fold year-over-year to $131 million.

    • Raised full-year 2026 revenue outlook to $3.1 billion to $3.3 billion.

    • Raised full-year 2026 adjusted EBITDA outlook to $275 million and $325 million.

    Concerns

    4

    • Gross margins in Q2 were 64%, down approximately 6 points quarter-over-quarter on an adjusted basis due to mix shift towards weight loss and international business.

    • Operating cash flow was negative $36 million and free cash flow was negative $68 million in Q2 due to increased working capital demands for branded weight loss offerings.

    • GAAP net income was a loss of $86 million, impacted by $81 million of nonrecurring costs related to acquisition, restructuring, and FTC litigation.

    • The FTC filed a complaint on July 29, which the company intends to defend vigorously.

    Guidance & targets

    7
    CategoryTargetConfidence
    Q3 FY26 Revenue
    $880 million to $900 million
    high materiality
    High
    Q3 FY26 Adjusted EBITDA
    $75 million to $95 million
    high materiality
    High
    Full-year 2026 Revenue
    $3.1 billion to $3.3 billion
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    $275 million to $325 million
    high materiality
    High
    International Business FY26 Revenue
    at least $600 million
    medium materiality
    High
    2030 Revenue
    at least $6.5 billion
    high materiality
    High
    2030 Adjusted EBITDA
    $1.3 billion
    high materiality
    High

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    Domestic (U.S.)
    Domestic revenue growth accelerated in the second quarter, driven by expanded assortment in branded weight loss offerings and continued success in newer specialties like low testosterone.
    		$622 million16%——
    International
    International revenue saw significant growth, including approximately $40 million from the Eucalyptus acquisition. Organic growth was 13% quarter-over-quarter. The company expects international business to generate at least $600 million in FY26, operating at or near breakeven on an adjusted EBITDA basis.
    		$131 million17-fold increase13% organically—
    Hers
    Hers is on track to deliver significant annual revenue, with its weight loss customers showing meaningful engagement acceleration due to AI-native experience.
    Annual Revenue Run Rate: on track to deliver north of $1 billion this year
    		————
    Testosterone
    Testosterone is scaling faster than any other specialty outside of weight loss, with plans to expand into injectable and oral TRT before year-end.
    Annual Revenue Run Rate: expected to become the sixth U.S. specialty to reach $100 million
    		————
    International Markets >$100M Annualized Revenue
    These markets are already generating significant annualized revenue, with Canada expected to follow as generic weight loss offerings scale.
    Markets: U.K., Australia, GermanyCanada: on track to join this group
    		————

    Operational metrics

    13
    Global Subscriber Base
    nearly 3 million
    Q2 FY26

    Total subscribers on the platform.

    Net New Subscribers
    300,000
    Q2 FY26

    Added during the second quarter.

    Adjusted EBITDA Margin
    8%1-point improvement QoQ
    Q2 FY26

    Reflects operating leverage offsetting gross margin headwinds.

    Gross Margin
    64%down 6 points QoQ
    Q2 FY26

    Adjusted basis. Compression reflects strategic action to scale weight loss and international markets.

    Marketing as a percentage of revenue
    34%improved 5 points YoY and 2 points QoQ
    Q2 FY26

    Driven by strengthening retention, cross-sell, and brand investment.

    Cash and Short-Term Investments
    more than $840 million
    end of Q2 FY26

    After accounting for the $225 million upfront payment for Eucalyptus.

    Share Repurchase Program Remaining Authorization
    $225 million
    Q2 FY26

    Provides ability to act when market value disconnects from intrinsic value.

    AI Investment Payback Period
    12 to 18 months
    near-term

    Expected payback for AI investments.

    AI Impact on Nonclinical Support Tasks
    50% reduction
    Q2 FY26

    Demonstrated in successful pilots.

    Eucalyptus Revenue Contribution
    approximately $40 million
    Q2 FY26

    Contributed to international revenue in the second quarter.

    Nonrecurring Costs
    $81 million
    Q2 FY26

    Primarily impacted G&A, operations, and support costs, leading to GAAP net income loss.

    Receivables Facility
    $400 million
    Q2 FY26

    Established to convert short-dated receivables from branded weight loss offering into cash.

    Convertible Debt Offering
    over $400 million
    Q2 FY26

    Completed to reinforce the balance sheet.

    Industry KPIs

    3
    MetricValueDetails
    Client retention new winslower cancellations
    Membership covered lives by linenearly 3 millionpeople
    Adjusted EPS EBITDA leverage guidance$60 millionUSD

    Product announcements

    2
    ProductTypeDetails
    Sermorelin, Glutathione, NAD+launch
    Injectable and Oral TRTexpansion

    Deals & partnerships

    2
    EucalyptusAcquisition of a global consumer health platform to deepen presence in Europe and extend reach to Australian and Japanese consumers.$225 million upfront payment

    Largest acquisition in company's history, closed in June. The acquisition has expanded the company's international footprint and capabilities.

    Novo NordiskCollaboration on expanding access to innovative treatments, particularly the Wegovy pill, and sharing data to improve patient outcomes.

    Strong relationship with Novo Nordisk, collaborating on broadening patient access to treatments like Wegovy. Includes data sharing on patient adherence and side effects, and exploring new therapies.

    Risks & headwinds

    3
    Gross margin compressionQ2 FY26, expected to persist through H2

    64% in Q2, down 6 points QoQ

    Mitigation: Underlying unit economics remain strong; investments expand subscriber base and unlock efficiencies across the platform over time.

    Negative operating and free cash flowQ2 FY26

    Operating cash flow negative $36 million, free cash flow negative $68 million in Q2

    Mitigation: Established a $400 million receivables facility; completed a $400 million convertible debt offering; expect to resume free cash flow generation in the second half of the year.

    FTC litigationQ2 FY26

    $81 million in nonrecurring costs

    Mitigation: Company intends to defend its position vigorously against the complaint filed on July 29.

    What to watch in Q3 FY26

    5

    Peptides launch (Sermorelin, Glutathione, NAD+)

    before the end of this year
    CurrentValidation and stability testing ongoing
    TargetLaunch of allowed peptides

    Why it matters

    This represents the company's initial entry into the peptide market, which could be a significant growth driver if regulatory clarity is achieved.

    In the meantime, we plan to offer access to already allowed peptides with safe and well-established supply chains before the end of the year. This will include solutions like sermorelin, glutathione and NAD+.

    Q&A highlights

    5

    Given the recent PCAC recommendations for peptides, what is the go-to-market timeline once FDA guidance is provided? Is the company ready to launch quickly, or will it take longer? Has the July recommendation changed the calculus on letting others go first?

    Andrew Dudum expressed excitement about the peptide category and the PCAC meeting results. He stated that the company has made significant progress on clinical guidelines and supply chain, giving confidence to move quickly if the FDA moves peptides to the Category 1 list. Dr. Anant Vinjamoori is building clinical protocols, and the Menlo Park API facility is conducting stability and validation testing for BPC-157. In the meantime, the company will offer already allowed peptides like sermorelin, glutathione, and NAD+ by year-end.

    “We've made incredible progress in the last couple of quarters on the clinical guidelines as well as the supply chain that gives me confidence that if and when the FDA does decide to move these peptides to the Category 1 list, we'll be able to move extremely quickly.”

    asked by William Newby · answered by Andrew Dudum

    2 min read6 chapters

    Detailed Narrative

    01

    AI-Native Health Experience and Efficiency Gains

    Hims & Hers is integrating AI across its platform to deliver a unified, personalized health experience. This approach has already shown significant impact, with Hers weight loss customers engaging 3x more often and AI answering 80% of their questions. This has reduced nonclinical support tasks by nearly 50%, leading to early cost savings and improved customer retention. The company plans to accelerate AI investment, including opening an AI R&D lab in Menlo Park, expecting a payback within 12-18 months, while ensuring clinicians remain in charge of clinical decisions.

    02

    Expansion into Complex Categories and New Medical Leadership

    The company's robust infrastructure enables it to enter more complex health categories. Testosterone replacement therapy (TRT) is scaling faster than any other specialty outside of weight loss, with plans to expand into injectable and oral TRT by year-end. Dr. Anant Vinjamoori has been appointed Chief Medical Officer for Hims, bringing expertise in hormonal health, longevity medicine, and peptide therapy. This strategic hire supports the development of new offerings and clinical protocols for these advanced areas.

    03

    Peptides Strategy and Regulatory Landscape

    Hims & Hers is developing a best-in-class peptides experience, including U.S.-manufactured products, clinically led guidance, and ongoing blood testing. While awaiting FDA's decision on six peptides recommended at the PCAC hearing, the company has started validation and stability testing on APIs for these peptides. In the interim, access to already allowed peptides like sermorelin, glutathione, and NAD+ is planned before year-end, contingent on regulatory clarity.

    04

    Global Scale and Strategic Acquisitions

    The acquisition of Eucalyptus in June marked the largest in the company's history, establishing Hims & Hers as a leading global consumer health platform. This expanded its presence to three international markets (U.K., Australia, Germany) now pacing above a $100 million annual run rate, with Canada also on track. This global reach, combined with technology and infrastructure, aims to deliver personal, accessible, and effective health management worldwide, starting with weight management.

    05

    Financial Strategy and Capital Allocation

    The company's financial strategy focuses on thoughtful scale, robust EBITDA, and free cash flow generation. Efficiencies gained from AI and operational improvements will be reinvested into making weight loss treatment more accessible through lower prices and into accelerating international growth. The balance sheet is strong with over $840 million in cash and short-term investments, supported by a $400 million receivables facility and a $400 million convertible debt offering, providing flexibility for continued investment and a $225 million share repurchase program.

    06

    FTC Litigation and Nonrecurring Costs

    The company disclosed that the FTC filed a complaint on July 29, following nearly three years of cooperation and settlement negotiations. Hims & Hers stated it was not prepared to accept terms it believes do not reflect the facts or law and intends to defend its position vigorously. This litigation, along with acquisition and restructuring costs, contributed to $81 million in nonrecurring expenses in Q2, impacting GAAP net income.

    AI-generated summary of the company’s earnings call. Not investment advice.