Global Finance News
11 Aug 2026, 05:49
Hims & Hers Stock Falls 6.8% After Q2 Loss, Margin Pressure Offset Strong Revenue Growth
Hims & Hers Health (NYSE: HIMS) shares fell about 6.8% in after-hours trading after the company reported second-quarter 2026 results showing strong revenue and subscriber growth but significantly weaker profitability.
Revenue increased 38% year over year to $753.2 million, while subscribers rose 19% to nearly 2.9 million. Monthly revenue per average subscriber increased 21% to $92.
International expansion was a major growth driver. U.S. revenue increased 16% to $621.8 million, while rest-of-world revenue surged to $131.4 million from just $7.5 million a year earlier, helped by the June closing of the Eucalyptus acquisition.
Profitability Weighs on HIMS Stock
Despite the strong top-line performance, profitability deteriorated considerably. Gross margin fell to 64% from 76% a year earlier, while adjusted EBITDA declined to $60.3 million from $82.2 million.
Hims & Hers also swung to a net loss of $86.3 million from net income of $42.5 million in the year-ago quarter. Operating cash flow was negative $35.9 million, while free cash flow remained negative at $68.2 million.
These profitability and cash-flow figures likely explain the negative after-hours reaction despite accelerating revenue growth.
Hims & Hers Raises 2026 Revenue Guidance
The company raised its full-year revenue outlook to $3.1 billion-$3.3 billion and expects adjusted EBITDA of $275 million-$325 million, implying a 9%-10% margin.
For the third quarter, management expects revenue of $880 million-$900 million and adjusted EBITDA of $75 million-$95 million.
Management also highlighted continued investment in AI-driven healthcare services and expects domestic revenue growth to accelerate during the second half of 2026.
The 6.8% decline in HIMS shares suggests investors are focusing more heavily on the sharp gross-margin contraction, lower adjusted EBITDA and return to a GAAP loss than on the company's strong revenue growth and higher full-year sales outlook. The key issue ahead will be whether Hims & Hers can maintain its accelerating growth while restoring profitability as it expands internationally.
Hims & Hers Health (NYSE: HIMS) shares fell about 6.8% in after-hours trading after the company reported second-quarter 2026 results showing strong revenue and subscriber growth but significantly weaker profitability.
Revenue increased 38% year over year to $753.2 million, while subscribers rose 19% to nearly 2.9 million. Monthly revenue per average subscriber increased 21% to $92.
International expansion was a major growth driver. U.S. revenue increased 16% to $621.8 million, while rest-of-world revenue surged to $131.4 million from just $7.5 million a year earlier, helped by the June closing of the Eucalyptus acquisition.
Profitability Weighs on HIMS Stock
Despite the strong top-line performance, profitability deteriorated considerably. Gross margin fell to 64% from 76% a year earlier, while adjusted EBITDA declined to $60.3 million from $82.2 million.
Hims & Hers also swung to a net loss of $86.3 million from net income of $42.5 million in the year-ago quarter. Operating cash flow was negative $35.9 million, while free cash flow remained negative at $68.2 million.
These profitability and cash-flow figures likely explain the negative after-hours reaction despite accelerating revenue growth.
Hims & Hers Raises 2026 Revenue Guidance
The company raised its full-year revenue outlook to $3.1 billion-$3.3 billion and expects adjusted EBITDA of $275 million-$325 million, implying a 9%-10% margin.
For the third quarter, management expects revenue of $880 million-$900 million and adjusted EBITDA of $75 million-$95 million.
Management also highlighted continued investment in AI-driven healthcare services and expects domestic revenue growth to accelerate during the second half of 2026.
The 6.8% decline in HIMS shares suggests investors are focusing more heavily on the sharp gross-margin contraction, lower adjusted EBITDA and return to a GAAP loss than on the company's strong revenue growth and higher full-year sales outlook. The key issue ahead will be whether Hims & Hers can maintain its accelerating growth while restoring profitability as it expands internationally.
