NEW YORK, August 11, 2026, 07:49 EDT — Shares of Hims & Hers Health NYSE:HIMS dropped 5.7% to $29.96 in premarket trading as the company posted a wider quarterly loss and reported another drop in gross margin, offsetting benefits from 38% revenue growth and an increased sales forecast.
- Gross margin for the second quarter declined to 64%, down from 76%.
- Revenue increased to $753.2 million, while the number of subscribers climbed to 2.89 million.
- The midpoint for full-year adjusted EBITDA declined by $12.5 million.
The quarter highlighted the impact of Hims’ revised growth strategy. Sales were boosted by branded GLP-1 weight-loss medications and overseas markets, yet these segments yield slimmer margins. Gross margin has declined for a fourth consecutive quarter.
The significance of that trade-off outweighs the headline sales beat. Hims reported a loss of $86.3 million, compared with a profit of $42.5 million the previous year. Adjusted EBITDA declined by 26.6%, despite a 38% rise in revenue.
| Second-quarter metric | 2026 | 2025 | Change |
|---|---|---|---|
| Revenue | $753.2 million | $544.8 million | up 38% |
| Gross margin | 64% | 76% | down 12 percentage points |
| Net income (loss) | -$86.3 million | $42.5 million | $128.8 million decrease |
| Adjusted EBITDA | $60.3 million | $82.2 million | fell 26.6% |
| Subscribers | 2.891 million | 2.439 million | rose 19% |
| Monthly revenue per average subscriber | $92 | $76 | climbed 21% |
Hims disclosed the results for the quarter closing June 30. The firm’s operating cash usage totaled $35.9 million. Free cash flow was negative, standing at $68.2 million.
The number of subscribers climbed by 452,000 compared to a year ago. Monthly revenue per subscriber went up by $16. However, the challenge lies in how much Hims paid to achieve this level of expansion.
Revenue costs rose to $272.4 million, more than twice the amount from before. Entry into branded weight-loss medications and the Eucalyptus buyout rapidly shifted the company’s portfolio. Hims logged $4.6 million in charges for restructuring.
Hims Chief Executive Andrew Dudum stated the company was providing care “at a global scale and a reasonable price.” However, margin figures provided a tougher benchmark for that assertion. Hims earnings release filed with the SEC
Management increased its full-year revenue outlook, citing a partial contribution from Eucalyptus. The company also lowered the upper end of the adjusted EBITDA forecast by $25 million, with the midpoint decreased by $12.5 million.
| Fiscal 2026 outlook | New range | Prior range | Midpoint change |
|---|---|---|---|
| Revenue | $3.1-$3.3 billion | $2.8-$3.0 billion | +$300 million |
| Adjusted EBITDA | $275-$325 million | $275-$350 million | -$12.5 million |
| Adjusted EBITDA margin | 9%-10% | 10%-12% | Range lowered |
Hims issued the revised guidance in its second-quarter SEC filing. The earlier figures were reported in its May earnings statement. The EBITDA margin at the midpoint falls to 9.4%, down from 10.8%.
Chief Financial Officer Yemi Okupe stated the core business had surpassed the previous sales outlook even excluding Eucalyptus. Still, he anticipates gross margins will stay beneath past averages as the company’s mix evolves.
The share move appears greater than the adjustment to guidance itself. A $1.81 drop before market open, applied to 223.08 million shares, wipes roughly $404 million from the company’s equity value. This figure is around 32 times larger than the midpoint reduction of $12.5 million in EBITDA.
| Market reference | Value | Context |
|---|---|---|
| August 10 close | $31.77 | End of regular trading |
| August 11 premarket | $29.96 | -5.7% |
| Shares outstanding | 223.08 million | Most recent available number |
| 52-week high | $65.30 | 53.8% higher than premarket value |
| 52-week low | $13.74 | 54.1% lower than premarket value |
The estimate relies on the share count and premarket price provided by Google Finance. It indicates that investors are factoring in ongoing margin pressure rather than reacting to a single change in outlook.
Analyst opinions vary, with four out of twelve latest ratings recommending buy and eight suggesting hold. The consensus price target of $31.39 is just 4.8% higher than the premarket level.
| Analyst | Firm | Recommendation | Price target | Date |
|---|---|---|---|---|
| Daniel Grosslight | Citi | Hold | $33 | August 11, 2026 |
| Glen Santangelo | Barclays | Buy | $39 | August 11, 2026 |
| Allen Lutz | BofA Securities | Hold | $32 | August 10, 2026 |
| Craig Hettenbach | Morgan Stanley | Hold | $21 | July 30, 2026 |
| Maria Ripps | Canaccord Genuity | Buy | $40 | July 23, 2026 |
The most recent analyst calls are listed on Google Finance. Barclays reiterated its buy rating and $39 price objective. Citi reaffirmed its hold rating and $33 target following the release.
Michael Cherny, an analyst at Leerink Partners, pinpointed the core concern. “We still see a tough balance between spending to grow and growth, keeping our optimism limited,” he said. Reuters
Risks: Increased branded-drug sales or accelerated global expansion could lower the gross margin beneath 64%. An additional cash outflow under these circumstances would complicate efforts to finance the 2030 objectives. However, improvements in purchasing terms and operating leverage may help offset those impacts.
The upcoming assessment is the third-quarter forecast. Hims projects revenue between $880 million and $900 million, along with adjusted EBITDA ranging from $75 million to $95 million. If margins stay close to the 9% lower boundary, it would signal that expansion remains expensive.
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