HIMS earnings analysis
What we found in HIMS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Hims & Hers delivered strong top-line growth, with Q2 revenue of $753.214 million up 38% year over year, subscribers up 19% to 2.891 million, and international revenue increasing to $131.384 million. However, profitability weakened materially: gross margin fell to 64%, operating margin was negative 13%, net loss was $86.290 million, and quarterly free cash flow was negative $68.193 million. The Eucalyptus acquisition, legal accruals, deferred consideration, and increasing debt materially raise execution and liquidity risks despite $841.0 million of cash and investments and raised FY2026 revenue guidance of $3.1 billion-$3.3 billion.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth accelerated
- Revenue increased to $753.214 million, up $208.381 million or 38% year over year from $544.833 million. Revenue also increased approximately 24% sequentially from $608 million in Q1 2026.
- Subscribers and monetization improved
- Subscribers increased 19% year over year to approximately 2.891 million as of June 30, 2026, while Monthly Revenue per Average Subscriber rose 21% to $92 from $76.
- International revenue surged
- Rest of the World Revenue increased $123.837 million, or 1,641%, to $131.384 million from $7.547 million, primarily reflecting international acquisitions, including Eucalyptus.
- U.S. business continued to grow
- United States Revenue grew 16% to $621.830 million from $537.286 million, driven primarily by the Hers brand and its expanded branded weight-loss assortment. Hers represented over 40% of U.S. revenue versus approximately 35% a year earlier.
- Liquidity supports near-term operations
- The company reported $841.0 million of cash, cash equivalents, and short-term investments as of June 30, 2026, and stated that available financial resources were sufficient to support operations for at least the next 12 months.
- Financing enabled global expansion
- The company issued $402.5 million of 0% convertible senior notes due 2032 for net proceeds of $389.5 million, while the Eucalyptus acquisition expanded operations into Australia and Japan and deepened its presence in the United Kingdom, Germany, Ireland, and Canada.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Severe margin compression
- Gross margin fell to 64% from 76% year over year and from 65.3% in Q1 2026. Management expects gross margin to remain below comparative periods in the near term because of the U.S. weight-loss strategic shift, shorter shipping cadences, international acquisitions, and new offerings.
- Profitability deteriorated sharply
- The company recorded a net loss of $86.290 million versus net income of $42.505 million a year earlier, with operating loss of $97.192 million versus operating income of $26.723 million. General and administrative expense increased 146% to $165.377 million, including $47.5 million of legal contingencies.
- Quarterly cash burn increased
- Free cash flow was negative $68.193 million in Q2 2026, while operating cash flow was negative $35.939 million. The company spent $25.926 million on property, equipment, and intangible assets and $6.328 million on website and internal-use software during the quarter.
- Acquisition obligations pressure liquidity
- Working capital shifted from a $363.2 million surplus at December 31, 2025 to a $98.6 million deficit at June 30, 2026, primarily because of deferred Eucalyptus consideration. Total contractual obligations were $1.1956 billion, including $662.3 million payable within 12 months.
- Regulatory and cybersecurity exposure
- The July 2026 FTC, Utah, and Los Angeles County complaint relates to privacy, advertising, subscription, and cancellation practices; the company had accrued approximately $60 million for estimated probable losses as of June 30, 2026. The company also disclosed a February 2026 cybersecurity incident involving social engineering attacks on two employees.
- Leverage and deferred consideration
- The company disclosed $1.4 billion of principal Convertible Notes debt and $12.6 million of letters of credit outstanding as of June 30, 2026. Eucalyptus consideration includes $683.9 million of deferred payments and potential earn-out consideration with an acquisition-date fair value of $59.6 million.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.37
- Gross margin
- 64%
- Operating margin
- -13%
- Segment
- One operating segment; United States Revenue was $621.830 million, up 16% year over year from $537.286 million.
- Segment
- Rest of the World Revenue was $131.384 million, up 1,641% year over year from $7.547 million.
- Segment
- Total revenue was $753.214 million, up 38% year over year from $544.833 million.
What they said about what is next.
FY2026 revenue guidance was raised to $3.1 billion-$3.3 billion. Q3 2026 revenue guidance is $880 million-$900 million and Adjusted EBITDA guidance is $75 million-$95 million; FY2026 Adjusted EBITDA guidance is $275 million-$325 million. Numeric guidance was discussed in the related earnings materials rather than the extracted 10-Q MD&A.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 11, 2026
- Hims & Hers reported Q1 2026 results with revenue of $608.1 million, a 4% increase year-over-year, but a net loss of $(92.1) million, turning from a profit of $49.5 million last year. The company attributed the United…
- 10-K · February 23, 2026
- Hims & Hers positions itself as a consumer-first digital health platform with integrated pharmacies, telehealth, and lab capabilities and says it has facilitated over fifty million telehealth consultations. Q4 2025…
- 10-Q · May 5, 2025
- Hims & Hers reported a strong March quarter: revenue rose to $586,010 (in thousands) from $278,171 a year ago and operating income expanded to $57,897 (in thousands), producing diluted EPS of $0.20. The growth was…
- 10-K · February 24, 2025
- Hims & Hers positions itself as a consumer-first, subscription-driven digital health platform focused on recurring-treatment specialties (sexual health, hair loss, dermatology, mental health, weight loss) and emphasizes…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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