Hims & Hers (NYSE: HIMS) Posts 38% Revenue Growth in Q2 But Net Loss Widens to $86.3M

Hims & Hers Health (NYSE: HIMS) reported Q2 2026 revenue of $753.2 million, up 38.3% year-over-year from $544.8 million, but the headline growth masked a sharp deterioration in profitability: gross margin compressed 12 percentage points to 64% from 76% in Q2 2025, and GAAP net loss swung to $86.3 million from net income of $42.5 million a year earlier. The company also raised its full-year 2026 revenue guidance to a range of $3.1 billion to $3.3 billion.

Q2 2026 Financial Results

• Revenue: $753.2 million, up 38.3% year-over-year, with U.S. revenue of $621.8 million (up 16% YoY) and international revenue of $131.4 million, a 1,641% increase driven by the close of the Eucalyptus acquisition in June.
• Gross margin: 64% in Q2 2026, down from 76% in Q2 2025, a decline of 12 percentage points.
• GAAP net loss: $86.3 million, compared to net income of $42.5 million in Q2 2025.
• Adjusted EBITDA: $60.3 million, down 26.6% from $82.2 million in Q2 2025.
• Subscribers: 2.891 million at end of period, up 19% year-over-year from 2.439 million.
• Monthly revenue per average subscriber: $92, up 21% year-over-year from $76.

What Drove the Results

GAAP EPS of -$0.10 missed the consensus estimate of -$0.01 by a wide margin, a -599.3% surprise. Revenue growth of 38.3% was significant, but the profitability picture was the central investor concern: gross margin fell 12 percentage points to 64%, and Adjusted EBITDA declined 26.6% to $60.3 million even as revenue expanded by more than $208 million year-over-year. The international revenue line, which grew more than 17-fold to $131.4 million, reflects the consolidation of Eucalyptus following the June acquisition close, a structural shift that appears to have introduced meaningful costs.

Free cash flow was -$68.2 million for the quarter, compared to -$69.4 million in Q2 2025. Capital expenditure totaled $32.3 million, down 35.8% from $50.3 million in the prior-year period. Operating cash outflow was $35.9 million versus $19.1 million in Q2 2025, indicating that working capital or acquisition-related costs absorbed cash despite the revenue acceleration.

Guidance and Outlook

For Q3 2026, Hims & Hers guided to revenue of $880 million to $900 million and Adjusted EBITDA of $75 million to $95 million, representing an Adjusted EBITDA margin of 9% to 11%. Full-year 2026 guidance was raised to revenue of $3.1 billion to $3.3 billion with Adjusted EBITDA of $275 million to $325 million, a 9% to 10% margin. CFO Yemi Okupe cited domestic revenue growth reaccelerating to 16% year-over-year in Q2 and international expansion strengthened by the Eucalyptus acquisition. The company also reiterated long-term 2030 targets of at least $6.5 billion in revenue and $1.3 billion in Adjusted EBITDA.

Wall Street View

Analyst sentiment ahead of the report leaned toward cautious optimism, with the most recent consensus (as of August 1, 2026) showing seven Buy ratings and thirteen Hold ratings among covering firms. The sharp EPS miss of -$0.10 against a -$0.01 consensus, combined with the 12-percentage-point gross margin contraction, is likely to prompt scrutiny of the cost structure embedded in the company's international expansion, even as the raised revenue guidance provides a partial offset.

Investor Takeaway

The Q2 results present a two-sided picture: revenue growth of 38.3% and a subscriber base approaching 2.9 million demonstrate platform scale, but the swing from net income to an $86.3 million GAAP net loss and the 12-point gross margin compression are material changes that the raised full-year guidance does not fully address. The critical question for the second half of 2026 is whether domestic revenue reacceleration and AI-driven efficiency investments, as cited by management, can restore margin trajectory toward the company's 2030 profitability targets, particularly as international integration costs from the Eucalyptus acquisition continue to flow through the income statement.