Hims & Hers Q2 Revenue Climbs 40% to $753 Million
Hims & Hers Health (NYSE:HIMS) reported second-quarter 2026 revenue of more than $753 million, up nearly 40% year over year. The telehealth company added 300,000 net new subscribers, ending the quarter with nearly 3 million globally.
CFO Yemi Okupe said domestic revenue rose 16% to $622 million, while international revenue surged more than 17-fold to $131 million, helped by the June acquisition of Eucalyptus, which contributed about $40 million to the quarter.
Weight-Loss Expansion Drives Subscriber Acceleration
The company’s decision in March to broaden its branded weight-loss assortment reignited growth, according to Okupe. Although a shift to monthly billing for those products created revenue-recognition headwinds, increased subscriber additions more than offset the drag.
CEO Andrew Dudum highlighted the partnership with Novo Nordisk (NYSE:NVO) as key to expanding access to weight-loss treatments. He called the Wegovy pill launch “staggering” and noted collaborations in Germany and the U.K.
AI Investments Triple Messaging, Cut Support Work
Hims & Hers’ AI-enabled care experience tripled customer messaging, answered 80% of questions, and reduced non-clinical support work by nearly 50%. Management expects these investments to generate returns within 12–18 months, improving operational leverage.
The efficiency gains matter for margins, which are under near-term pressure. Adjusted EBITDA came in at $60 million, while adjusted gross margin fell to 64% and free cash flow was negative $68 million, driven by branded weight-loss expansion and working-capital needs.
Profitability Pressure and Free Cash Flow Turnaround
Investors should watch the cash burn. Management expects free cash flow to turn positive in the second half of 2026, projecting Q3 revenue of $880 million–$900 million. That guidance implies sequential acceleration and will test the sustainability of subscriber growth.
Full-year revenue outlook was raised to $3.1 billion–$3.3 billion, representing growth of 32%–41%. The market will likely focus on whether the company can maintain that pace while absorbing integration costs from Eucalyptus.
FTC Lawsuit: Why It’s Not a Death Knell
The Federal Trade Commission has sued Hims & Hers, but the company’s fundamentals remain intact. The suit centers on alleged unfair or deceptive practices, though specifics remain under seal. Legal experts note that telehealth companies often face regulatory scrutiny, but resolution can take years.
Investors shouldn’t panic. The company continues to grow revenue, expand internationally, and leverage AI to cut costs. The lawsuit adds uncertainty, but it doesn’t erase the operational momentum or the raised guidance.
Watch for the next quarterly report and any FTC settlement developments. If free cash flow turns positive as projected, that would validate the turnaround story. Conversely, if regulatory costs escalate or subscriber churn rises, the bull case weakens.
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