Key Takeaways:
Hims & Hers Health lifted its full-year revenue forecast after second-quarter sales climbed 38.2 percent to $753.2 million, topping the Zacks Consensus Estimate by 9.1 percent.
The raise extends a run of upward revisions even as the cost of expansion shows up in the income statement. Zacks Investment Research data shows the consensus 2026 loss-per-share estimate widened to 60 cents from 21 cents over the past 30 days, a deterioration of 185.7 percent.
Subscribers reached about 2.9 million in the quarter, up 18.5 percent year over year, while monthly online revenue per average subscriber rose 21.1 percent to $92 on a richer product mix and greater uptake of weight-loss offerings. US revenue climbed 15.7 percent to $621.8 million, and rest-of-world revenue reached $131.4 million, up more than 17-fold.
The company now expects 2026 revenue of $3.1 billion to $3.3 billion, implying growth of 32 percent to 41 percent, above its prior outlook of $2.8 billion to $3 billion that called for 19 percent to 28 percent growth. For the third quarter, management projects revenue of $880 million to $900 million, or roughly 47 percent to 50 percent year-over-year growth.
The top-line strength came with weaker profitability. Gross margin contracted 1,256 basis points to 63.8 percent, while operating expenses rose 48.4 percent to $577.9 million. HIMS recorded a $97.2 million operating loss versus a $26.7 million operating profit a year earlier, and a net loss of $86.3 million. Adjusted EBITDA was $60.3 million, an 8 percent margin.
Branded weight-loss products and international expansion carry lower margins, while acquisitions and technology investments add costs as the platform scales. Operating cash flow was negative $36 million in the quarter and free cash flow negative $68 million, as short-dated receivables and inventory requirements increased. Management expects free cash flow to recover in the second half and has established a $400 million receivables facility.
The guidance raise shows management expects demand to keep accelerating, with weight loss, international scale and AI-enabled care underpinning the outlook. A partnership with Novo Nordisk around the Wegovy pill launch positions HIMS as a digital distribution channel for branded therapies, while the Eucalyptus acquisition added about $40 million to international revenue. Investors will watch the third-quarter report for whether gross margins stabilize as branded therapies and overseas markets grow.
This article is for informational purposes only and does not constitute investment advice.
