Hims & Hers Q2 2026 Earnings: Revenue Up 38% to $753M as GAAP Swings to an $86M Loss

Hims & Hers grew second-quarter revenue 38% to $753.2 million, ended the quarter with 2,891,000 subscribers (up 19%), and raised its full-year 2026 revenue outlook to $3.1–3.3 billion. It also reported a net loss of $86.3 million, against net income of $42.5 million a year earlier. Both facts come from the same income statement. Gross margin fell from 76% to 64% as the weight-loss offering moved toward branded GLP-1 medications. Marketing still absorbed more than half of gross profit. General and administrative expense then more than doubled, carrying a $47.5 million legal-contingency charge. Subscription revenue grew; the margin that pays for acquiring the next subscriber got thinner. Q2 release, Q2 10-Q.

The Headline Numbers​

Hims & Hers reports on a calendar year, so Q2 2026 is the three months ended June 30, 2026. Results were released on August 10, 2026. Dollar amounts below are USD millions, taken from the condensed consolidated statements of operations in the release and the 10-Q; percentages are calculated from the reported thousands.

Revenue grew $208.4 million. Gross profit grew only $64.6 million, because cost of revenue more than doubled. Operating expenses then grew $188.5 million, nearly three times the gross-profit increase. That arithmetic is the whole swing from a $26.7 million operating profit to a $97.2 million operating loss.

Two items in G&A deserve to be named before anything else is concluded. The 10-Q says G&A "for the three months ended June 30, 2026 also included $47.5 million of legal contingencies that are considered non-recurring," and the release's reconciliation lists $28.8 million of acquisition and transaction-related costs in the same caption. Remove both and G&A would still have risen from $67.3 million to $89.0 million. The loss is not only a one-off; the one-offs make it larger.

Management's preferred profit measure tells a different story. Adjusted EBITDA was $60.3 million, down from $82.2 million. The release's reconciliation adds back the legal contingencies, $42.1 million of stock-based compensation, $29.5 million of depreciation and amortization, the acquisition costs, $4.6 million of restructuring charges and several fair-value items. Those are the company's non-GAAP adjustments; the ledger below records the GAAP lines only. Release, Adjusted EBITDA reconciliation.

Revenue Deep Dive: Subscribers, Price per Subscriber and a New Continent​

Hims & Hers reports one segment. It splits revenue geographically, by the location of the selling legal entity:

The international line is mostly an acquisition. In June 2026 the company bought Eucalyptus, an Australia-based digital health platform with operations in Australia, the United Kingdom, Germany, Ireland, Canada and Japan. The 10-Q says Eucalyptus contributed "approximately 5%" of Q2 revenue from the acquisition date. On a pro forma basis, as if owned from January 1, 2025, it would have been about 15% of consolidated revenue. Organic domestic growth was therefore closer to 16% than 38%.

The subscription metrics show where that growth came from:

Revenue grew roughly twice as fast as the subscriber count because each subscriber spent more. Monthly revenue per average subscriber rose 21% to $92. The release defines that metric as total revenue divided by the average of opening and closing subscribers, per month. The company also notes that subscribers exclude one-time purchasers and any subscription whose payment did not occur at the contracted cadence.

Management signal scan. We read the release's two prepared quotes and its outlook section for the seven demand, pricing and supply themes we track. Two hits, both about expansion:

• Market expansion: "Our second quarter results were defined by a significant re-acceleration in our growth profile and the continued expanding reach of our platform," and "our international business grew more than 17-fold, strengthened by the close of our Eucalyptus acquisition in June" (CFO commentary, Q2 release). The Rest of the World line confirms the 17-fold figure, and it also shows most of it was bought, not grown.
• Accelerating demand, forward-looking: "We expect our domestic business to continue accelerating through the second half of the year" (CFO commentary, Q2 release). The domestic line grew 15.7% in Q2. The six-month domestic figure grew only 3.2%, which implies an 8.4% decline in Q1, so the acceleration so far is one quarter long.

Absent: no "demand exceeds supply," no tight-supply language, no industry-upcycle language, and no statement about selling prices. That last absence matters. The 21% rise in revenue per subscriber is a price-and-mix effect, yet the release never calls it pricing. The 10-Q links the cost increase to "our weight loss offerings, some of which have higher product and packaging costs." A more expensive product sold at a higher price reads as mix, not pricing power.

The Margin Story: Marketing Against Gross Margin​

A telehealth subscription business runs on one inequality. The gross profit a subscriber produces must exceed what it cost to acquire that subscriber, and must do so fast enough to fund operations. The ledger makes the two sides of that inequality visible, because marketing is booked as its own labeled posting:

For four years the company's path to profit was marketing leverage. Marketing fell from about half of revenue in FY2021–FY2023 to 39.2% in FY2025. "Gross profit after marketing" rose from 25.2% to 34.7% of revenue, even while gross margin drifted down from its 82.0% peak. That is what turned an operating loss of 42.3% of revenue into a 4.5% operating profit.

Q2 2026 breaks the pattern from the other side. Marketing leverage continued: 34.8% of revenue is the lowest ratio in the table. But gross margin fell 12.6 points in a year, far more than marketing's 5.2-point improvement. Gross profit after marketing fell from 36.4% to 29.0% of revenue. In dollars it still grew, from $198.3 million to $218.6 million, but it no longer covered operations, technology and G&A.

The 10-Q explains the cost side mechanically. Cost of revenue rose 112%, driven by "increased product and packaging costs of 141%, increased shipping costs of 56%, and increased costs associated with medical consultation services of 30%." It attributes the increases primarily to weight-loss offerings, including the effect of the March 2026 shift toward branded GLP-1 medications, plus new subscribers and acquisitions. Marketing's biggest component, customer acquisition cost, rose 21.8% to $229.5 million. The 10-Q attributes that increase to more search and affiliate spending, partly offset by a focus on more efficient channels.

Put simply: branded medication is a lower-margin product than what it replaced, and the company still spends about $0.55 of marketing for every dollar of gross profit (54.5% in Q2 2026, versus 52.3% a year earlier). Marketing leverage measured against revenue improved. Measured against gross profit, which is what actually pays for acquisition, it got slightly worse.

The One Big Question: Is the Weight-Loss Pivot a Margin Reset or a Margin Floor?​

Everything in this quarter traces back to one decision. In March 2026 the company announced what the 10-Q calls a "strategic shift" in its U.S. weight-loss offering. It moved to "providing access to branded GLP-1 medications, and offering access to compounded GLP-1 medications through the platform on a limited scale," and launched a membership program for weight loss. The restructuring charges tied to that shift were $38.1 million for the first half, $28.5 million of them in cost of revenue in Q1, and $4.6 million in Q2 operating expenses.

The regulatory backdrop is the company's own risk-factor disclosure, and we report it only as disclosed. The 10-Q states that "the regulatory landscape applicable to compounded GLP-1s continues to rapidly evolve, which could result in penalties, changes to our business practices or other adverse consequences." It says the FDA issued a statement in February 2026 about restricting GLP-1 ingredients for mass-marketed compounded drugs, and that the company was named in it. It also says HHS indicated in February 2026 that it had referred the company to the DOJ for investigation, and that "it is unclear what actions the FDA, HHS, or DOJ may take." Separately, the 10-Q discloses pending patent litigation over compounded semaglutide products available through the platform. None of these matters has been resolved in the filing, and none is a finding against the company. They explain why the business moved toward branded supply. They are also the context for the $62.5 million of legal contingencies accrued in the first half.

The balance sheet shows the branded-supply model directly. Receivables, a new caption in 2026, reached $375.3 million, and the 10-Q says $347.4 million of that is "manufacturer's discount and rebate receivables" tied to inventory shipped under vendor supply agreements. Accounts payable rose from $143.3 million at year-end to $501.3 million. The company is now a distributor of someone else's high-cost drug, carrying rebates due from the manufacturer on one side and supplier bills on the other. The branded GLP-1 makers themselves are in the fleet: see the Eli Lilly Q2 2026 analysis and the Novo Nordisk H1 2026 analysis, each with its own ledger.

The full-year guide frames the bet. Revenue of $3.1–3.3 billion implies $1.74–1.94 billion in the second half, after $1.36 billion in the first. The Q3 guide alone is $880–900 million. The Adjusted EBITDA margin guide is 9–10%. That is below the 15% of Q2 2025, because the company is guiding to a lower-margin business at larger scale. If gross margin settles near 64%, marketing has to keep falling as a share of revenue just to hold operating profit where it was.

Tracking a $3 Billion Telehealth Company in Plain Text​

A double-entry ledger is a good way to read a subscription business, because every dollar of revenue has to land somewhere: in cost of revenue, in one of four operating expense captions, below the line, or in net income. In Beancount, income is recorded as a negative number (a credit) and expenses as positive numbers (debits); the Equity:Adjustments posting carries net income so the transaction sums to zero. Our guide to modeling a public company explains the full chart of accounts.

Here is the Q2 2026 income statement exactly as it sits in the public ledger. Marketing, operations and support, and G&A are three labeled postings on the same SG&A account, and the legal contingency is split out of G&A as its own posting:

; FY2026Q2 Income Statement — three months ended June 30, 2026 (quarter only, not six-month year to date)
; Revenue: United States 621,830 + Rest of the World 131,384 = 753,214 (release, revenue table).
; Net income (loss): -86.290 MUSD. Gross profit 480.803 MUSD.
; Check: -753.214 + 272.411 + 54.901 + 262.236 + 95.481 + 117.877 + 47.500 + -4.737 + 4.223 + -4.045 + -6.343 + -86.290 = 0
2026-06-30 * "Hims & Hers Health, Inc." "FY2026Q2 Income Statement"
  Income:Revenue                                    -753.214 MUSD ; total revenue
  Expenses:CostOfRevenue                             272.411 MUSD ; cost of revenue
  Expenses:ResearchAndDevelopment                     54.901 MUSD ; technology and development
  Expenses:SellingGeneralAdministrative              262.236 MUSD ; marketing (reported separately)
  Expenses:SellingGeneralAdministrative               95.481 MUSD ; operations and support
  Expenses:SellingGeneralAdministrative              117.877 MUSD ; general and administrative before legal contingencies
  Expenses:SellingGeneralAdministrative               47.500 MUSD ; legal contingencies within G&A (release: Adjusted EBITDA reconciliation)
  Income:OtherNet                                     -4.737 MUSD ; change in fair value of equity securities (gain)
  Income:OtherNet                                      4.223 MUSD ; change in fair value of liabilities (loss)
  Income:OtherNet                                     -4.045 MUSD ; other income, net
  Expenses:IncomeTax                                  -6.343 MUSD ; income tax benefit
  Equity:Adjustments                                 -86.290 MUSD ; reported net income (loss) offset; retained earnings set by balance assertion

The Equity:Adjustments posting is negative because the quarter lost money: expenses exceeded revenue, and the offset records an $86.3 million reduction in equity.

The balance-sheet line that tells the story is goodwill: $110.9 million from FY2021 through FY2023, $278.3 million at the end of 2025 and $1,101.7 million at June 30, 2026. The Eucalyptus purchase alone added $790.3 million of goodwill. Its accounting purchase price was $968.5 million, of which only $225.0 million was paid upfront in cash. The ledger shows the rest as liabilities: $537.4 million of deferred acquisition payable due within a year and $165.6 million after that, plus earn-out consideration. They sit beside $1,365.3 million of 0% convertible notes: $1.0 billion due 2030, issued in May 2025, and $402.5 million due 2032, issued in May 2026. Stockholders' equity fell from $540.9 million to $324.1 million in six months.

The Multi-Year Arc​

Subscriber counts are from each year's 10-K; the FY2021 figure is the comparative restated in the FY2022 10-K under the current "Subscribers" definition. The FY2021 10-K itself reported "Subscriptions," a different count.

Between FY2021 and FY2025 revenue compounded at about 71% a year and subscribers at about 46%. Subscriber growth then slowed sharply, from 45% in 2024 to 13% in 2025. Revenue kept compounding faster than the subscriber base because revenue per subscriber climbed: the FY2025 10-K puts monthly revenue per average subscriber at $56, $65 and $83 for 2023, 2024 and 2025. The FY2024 net income was helped by a $54.3 million income-tax benefit, and the FY2025 figure by a $4.4 million benefit, so neither year's net margin is a clean operating signal. Operating margin, 4.2% and 4.5%, is the better measure of how far the model had actually come.

Deferred revenue is the other subscription tell. It grew from $7.7 million to $75.3 million in 2024 and $141.4 million by mid-2026. The FY2025 10-K attributes the increase primarily to changes in the shipping cadences of the weight-loss offerings. Customers prepay for multi-month supplies, which pulls cash forward, but that revenue is still owed as future deliveries.

The Verdict: Bull vs. Bear​

Bull Case

• Revenue per subscriber rose 21% to $92 a month while subscribers still grew 19%. Volume and value rose together, which is rare for a subscription business at 2.9 million members.
• Marketing fell to 34.8% of revenue, the lowest ratio in the ledger's history. Acquisition efficiency keeps improving even through a product transition.
• Domestic revenue grew 15.7% in Q2 after an 8.4% decline in Q1 (the six-month figures less Q2). Management expects it to "continue accelerating through the second half," and the Q3 guide of $880–900 million is consistent with that.
• Eucalyptus makes the company multinational overnight. Rest of the World is already 17.4% of revenue, with a pro forma run-rate near 15% of the consolidated business.
• Most of the Q2 loss sits in identifiable lines: $47.5 million of legal contingencies and $28.8 million of acquisition costs, both of which the company describes as non-recurring.

Bear Case

• Gross margin fell from 76.4% to 63.8% in a year. The branded-GLP-1 model looks structurally lower-margin, and no release language claims pricing power to rebuild it.
• Gross profit after marketing fell to 29.0% of revenue from 36.4%. That leaves too little to cover $315.8 million of other operating costs, so the P&L no longer self-funds.
• The balance sheet has leveraged up quickly: $1.37 billion of convertible notes, $703.0 million of deferred acquisition payables and $163.0 million of earn-outs against $324.1 million of equity.
• The regulatory items in the risk factors, including the FDA statement, the DOJ referral and the patent litigation, are unresolved. The company itself says it cannot predict their outcome.
• The "accelerating demand" signal rests on one quarter. Six-month domestic revenue grew only 3.2%, and no demand or supply language in the release goes further than an expectation.

Our Take

Hims & Hers is a real subscription business with a real acquisition engine: marketing efficiency has improved every year in the ledger, and revenue per subscriber is rising. But Q2 2026 shows that the engine's fuel changed. The product that now drives growth carries a gross margin about twelve points lower, and marketing leverage, however steady, cannot outrun that on its own. We would treat the $3.1–3.3 billion revenue guide as credible and the return to GAAP profitability as unproven. The line to watch is gross profit after marketing. If it climbs back above a third of revenue while the acquisition payables are paid down, the pivot was a reset. If it stays near 29%, the company has traded a high-margin niche for a low-margin scale business, and the ledger will show that first.