Hims & Hers Health (NYSE:HIMS) Releases Earnings Results, Misses Estimates By $0.32 EPS

Key Points

• Hims & Hers reported strong revenue growth but missed on earnings. Second-quarter revenue rose 38.2% year over year to $753.2 million, exceeding estimates, while the company posted a $0.37 per-share loss versus the expected $0.05 loss.
• Growth momentum remains strong. Subscriber additions accelerated, international revenue surged following the Eucalyptus acquisition, and management raised its 2026 revenue guidance to $3.1 billion–$3.3 billion, citing AI-enabled care and global expansion.
• Profitability and investor sentiment face pressure. Gross margin declined to 64%, free cash flow was negative $68 million, and acquisition, restructuring and legal costs totaled about $81 million; shares fell 2.6%, while analysts maintained a consensus “Hold” rating.

Hims & Hers Health (NYSE:HIMS - Get Free Report) issued its earnings results on Monday. The company reported ($0.37) earnings per share for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.32), FiscalAI reports. The company had revenue of $753.21 million during the quarter, compared to analyst estimates of $698.89 million. Hims & Hers Health had a negative net margin of 0.56% and a positive return on equity of 6.10%. The business's quarterly revenue was up 38.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.17 EPS.

Here are the key takeaways from Hims & Hers Health's conference call:

• Revenue and subscriber growth accelerated. Q2 revenue rose nearly 40% year over year to more than $753 million, with 300,000 net new subscribers bringing the total to nearly 3 million; management raised full-year 2026 revenue guidance to $3.1 billion–$3.3 billion.
• The company reported early benefits from its AI-native care platform, including three times more customer messaging, an approximately 50% reduction in non-clinical support tasks, and lower cancellation rates in pilot cohorts. Management expects AI investments to pay back within 12–18 months and support improved retention and cost efficiency.
• International expansion is becoming a major growth driver following the Eucalyptus acquisition. International revenue increased more than 17-fold year over year to $131 million, and the company expects international revenue of at least $600 million in 2026 while expanding U.S. specialties such as testosterone, sexual health, and dermatology overseas.
• New growth opportunities include injectable and oral testosterone before year-end and peptide-related wellness offerings, subject to regulatory developments. The company expects to launch already permitted offerings such as sermorelin, glutathione, and NAD+ by year-end, while awaiting final FDA rulemaking for additional peptides.
• Profitability and cash flow faced near-term pressure from the business mix and one-time costs. Adjusted gross margin fell to 64% as branded weight-loss products and international revenue grew, Q2 free cash flow was negative $68 million, and the company incurred approximately $81 million in acquisition, restructuring, and FTC-related legal costs; management also said international operations may remain near breakeven as it invests for scale.

Hims & Hers Health Stock Down 2.6%

HIMS stock traded down $0.84 during trading on Tuesday, hitting $30.93. 22,924,268 shares of the stock traded hands, compared to its average volume of 26,791,145. The stock has a market cap of $7.16 billion, a price-to-earnings ratio of -343.66, a price-to-earnings-growth ratio of 88.90 and a beta of 2.40. The company has a debt-to-equity ratio of 2.18, a current ratio of 1.69 and a quick ratio of 1.56. Hims & Hers Health has a 1 year low of $13.74 and a 1 year high of $65.30. The firm's 50 day moving average is $31.94 and its two-hundred day moving average is $26.07.

Insider Buying and Selling

In other news, insider Patrick Harrison Carroll sold 23,726 shares of the firm's stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $35.00, for a total value of $830,410.00. Following the transaction, the insider owned 181,861 shares of the company's stock, valued at $6,365,135. This trade represents a 11.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Oluyemi Okupe sold 18,197 shares of the firm's stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $34.03, for a total value of $619,243.91. Following the completion of the transaction, the chief financial officer directly owned 284,321 shares in the company, valued at $9,675,443.63. This trade represents a 6.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 83,126 shares of company stock valued at $2,711,339 in the last 90 days. 11.76% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of HIMS. Pacer Advisors Inc. lifted its holdings in shares of Hims & Hers Health by 83.6% in the 4th quarter. Pacer Advisors Inc. now owns 50,054 shares of the company's stock worth $1,625,000 after buying an additional 22,794 shares during the period. Axxcess Wealth Management LLC bought a new stake in shares of Hims & Hers Health in the fourth quarter valued at about $914,000. Creek Drive Management Group LLC bought a new stake in shares of Hims & Hers Health in the fourth quarter valued at about $3,767,000. Mercer Global Advisors Inc. ADV raised its holdings in shares of Hims & Hers Health by 10.7% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 125,222 shares of the company's stock valued at $4,066,000 after acquiring an additional 12,147 shares in the last quarter. Finally, First Citizens Bank & Trust Co. bought a new stake in shares of Hims & Hers Health in the fourth quarter valued at about $311,000. 63.52% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on HIMS shares. Citigroup lowered their price objective on shares of Hims & Hers Health from $35.00 to $33.00 and set a "neutral" rating on the stock in a research report on Tuesday. Morgan Stanley upped their target price on shares of Hims & Hers Health from $21.00 to $28.00 and gave the stock an "equal weight" rating in a report on Tuesday. Jefferies Financial Group set a $24.50 target price on shares of Hims & Hers Health in a report on Tuesday, May 12th. Truist Financial boosted their price objective on Hims & Hers Health from $23.00 to $27.00 and gave the stock a "hold" rating in a report on Friday, July 24th. Finally, UBS Group set a $23.00 target price on Hims & Hers Health in a research report on Friday, May 22nd. Four research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $32.43.

Key Hims & Hers Health News

Here are the key news stories impacting Hims & Hers Health this week:

• Positive Sentiment: Second-quarter revenue rose 38% year over year to $753.2 million, exceeding analysts’ expectations of approximately $699 million. Strong subscriber growth and broader personalized-care offerings supported the result. Hims & Hers raises annual forecast revenue on strong subscriber growth
• Positive Sentiment: Hims & Hers raised its 2026 revenue forecast to $3.1 billion-$3.3 billion from $2.8 billion-$3.0 billion, while third-quarter revenue guidance of $880 million-$900 million also topped consensus. Management cited AI-driven engagement, specialty care expansion and international growth through Eucalyptus. HIMS Q2 Earnings Call Focuses on AI and Global Expansion
• Positive Sentiment: Needham raised its price target from $35 to $42 and maintained a “buy” rating, pointing to potential upside if the company’s growth investments translate into improved profitability. Needham price target update
• Neutral Sentiment: Bank of America increased its target from $30 to $32 but retained a “neutral” rating, indicating limited near-term upside at recent trading levels. Bank of America price target update
• Negative Sentiment: The company reported a quarterly loss of approximately $0.37 per share, substantially worse than the roughly $0.05 expected loss. Restructuring charges and investments related to branded GLP-1 weight-loss treatments and international expansion pressured profitability and reduced gross margin. Hims & Hers shares slide as costly weight-loss push squeezes margins
• Negative Sentiment: Several law firms announced investigations into potential securities-law violations or alleged fiduciary-duty breaches involving Hims & Hers directors and officers. These announcements do not establish wrongdoing but add headline and litigation risk for shareholders. Kaplan Fox investigation announcement

About Hims & Hers Health

Hims & Hers Health, Inc is a telehealth platform providing direct-to-consumer personal care products and virtual medical services in the United States. Operating under the Hims & Hers brand, the company offers an integrated digital experience that connects users with licensed healthcare providers, enabling online consultations and prescriptions for a range of conditions. Its telemedicine infrastructure supports both prescription medications and over-the-counter products, with home delivery to patients' doorsteps.

The company's product portfolio addresses key areas of men's and women's health, including hair loss treatments, sexual wellness therapies, skincare regimens and mental health support.

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