Hims & Hers Health (NYSE:HIMS) reported second-quarter 2026 revenue of more than $753 million, up nearly 40% from a year earlier, as the telehealth company added 300,000 net new subscribers and ended the period with nearly 3 million subscribers globally.
Chief Financial Officer Yemi Okupe said domestic revenue rose 16% year over year to $622 million, while international revenue increased more than 17-fold to $131 million. The company’s June acquisition of Eucalyptus contributed about $40 million of second-quarter revenue, according to Okupe.
Weight Loss, Subscriber Growth Drive Results
Okupe said the company’s decision in March to broaden its branded weight-loss assortment helped reaccelerate growth in the second quarter. While a shift to monthly billing for branded weight-loss products created revenue-recognition headwinds, increased subscriber additions more than offset that effect, he said.
Chief Executive Officer Andrew Dudum said Hims & Hers’ relationship with Novo Nordisk has helped expand access to weight-loss treatments. He described the launch of the Wegovy pill as “staggering” and said the company is among the largest providers helping patients access the product. Dudum also said the company has partnered with Novo Nordisk in international markets, including Germany and the U.K.
Hims & Hers said it is seeing retention in branded weight-loss cohorts align with its expectations. Okupe added that early data from a more immersive app experience, AI tools and physical tools such as scales indicate lower cancellation rates among participating subscribers.
The company expects gross-margin pressure to continue in the second half as branded weight-loss products and international revenue account for a larger share of sales. Adjusted gross margin was 64% in the second quarter, down about six percentage points sequentially. Okupe said the company views the margin tradeoff as a deliberate investment to expand its subscriber base and long-term platform scale.
AI Rollout Aims to Improve Engagement and Efficiency
Chief Technology Officer Mo Elshenawy said Hims & Hers began a phased rollout of an AI-enabled care experience for Hers weight-loss customers in early July. Customers using the new experience have sent three times as many messages on the platform, with AI answering 80% of their questions, he said.
Elshenawy said the AI system has reduced non-clinical tasks handled by support teams, including order updates and general side-effect questions, by nearly 50%. The company said clinicians remain responsible for clinical decisions, while AI operates under protocols and guidelines developed by its medical experts.
The company plans to extend the AI-driven experience across its platform over time and said it expects to add AI talent and open an AI research and development lab in Menlo Park. Okupe said the company expects its AI investments to pay back within 12 to 18 months through improved subscriber experiences, lower cancellations and lower costs to serve customers.
Dudum said Hims & Hers ultimately aims to combine data from lab testing, wearables, preventive screening and other sources into a broader health-management platform. He said the company could introduce membership and free offerings around such tools in the coming year or two, though he did not provide a specific launch date.
New Categories and International Expansion
Dudum said testosterone treatment has become the company’s fastest-growing specialty outside of weight loss, just three quarters after launch. Hims & Hers expects testosterone to become its sixth U.S. specialty with an annual revenue run rate above $100 million in coming quarters. The company plans to introduce injectable and oral testosterone treatments before the end of 2026.
The company also is developing peptide offerings. Dudum said Hims & Hers has begun validation and stability testing on active pharmaceutical ingredients for peptides discussed at a recent FDA Pharmacy Compounding Advisory Committee hearing. He said the company would wait for final FDA rulemaking before offering the peptides under consideration for compounding.
In the meantime, Hims & Hers expects to offer permitted wellness and peptide-related products, including sermorelin, glutathione and NAD+, by the end of the year. Dudum said the company is building clinical protocols, supply-chain capabilities and provider training for the category.
Internationally, Hims & Hers said the U.K., Australia and Germany are each producing more than $100 million in annualized revenue. Canada is also on track to reach that threshold as the company expands generic weight-loss offerings, Okupe said. Hims & Hers expects international operations to generate at least $600 million of revenue in 2026 while operating at or near adjusted EBITDA break-even as it prioritizes growth.
Profitability, Cash Flow and Outlook
Second-quarter adjusted EBITDA was $60 million, representing an 8% margin and a one-percentage-point sequential improvement. Marketing expense declined to 34% of revenue, improving five percentage points from a year earlier and two points from the prior quarter.
GAAP net income was a loss of $86 million, affected by approximately $81 million in nonrecurring acquisition, restructuring and legal costs. The company said the legal costs included accruals related to litigation with the Federal Trade Commission. Okupe said Hims & Hers intends to defend itself vigorously against the FTC complaint filed July 29.
Operating cash flow was negative $36 million and free cash flow was negative $68 million during the quarter, reflecting working-capital needs tied to the expanding branded weight-loss business. The company expects to resume free-cash-flow generation in the second half. It ended the quarter with more than $840 million in cash and short-term investments after making a roughly $225 million upfront payment for Eucalyptus.
- Third-quarter revenue outlook: $880 million to $900 million.
- Third-quarter adjusted EBITDA outlook: $75 million to $95 million.
- Full-year 2026 adjusted EBITDA outlook: $275 million to $325 million.
Management reiterated its longer-term 2030 ambitions of at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA.
About Hims & Hers Health (NYSE:HIMS)
Hims & Hers Health, Inc is a telehealth platform providing direct-to-consumer personal care products and virtual medical services in the United States. Operating under the Hims & Hers brand, the company offers an integrated digital experience that connects users with licensed healthcare providers, enabling online consultations and prescriptions for a range of conditions. Its telemedicine infrastructure supports both prescription medications and over-the-counter products, with home delivery to patients’ doorsteps.
The company’s product portfolio addresses key areas of men’s and women’s health, including hair loss treatments, sexual wellness therapies, skincare regimens and mental health support.
