Hims & Hers Health Q1 Earnings Call Highlights

Key Points

• Hims & Hers posted Q1 revenue growth to $608 million and raised its full-year 2026 revenue outlook to $2.8 billion-$3 billion, while also maintaining strong cash generation with $53 million in free cash flow.
• The company’s shift toward branded GLP-1 weight-loss products is boosting demand but causing near-term margin pressure due to restructuring costs tied to winding down compounded supply, which contributed to a $92 million GAAP net loss.
• Management said AI, new specialties, and international expansion remain major growth priorities, including an upcoming acquisition of Eucalyptus and long-term targets of at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030.

Hims & Hers Health NYSE: HIMS reported first-quarter 2026 revenue growth and raised its full-year revenue outlook, while executives said a strategic shift in the company’s weight-loss business is creating short-term margin pressure and volatility in GAAP results.

On the company’s earnings call, Co-Founder and Chief Executive Officer Andrew Dudum said 2026 is “proving to be a year of accelerating growth,” pointing to new U.S. specialties, international expansion, technology investments and a broader weight-loss offering as core drivers of the company’s strategy.

“Hims & Hers is on its way to becoming an everyday health partner, not just for the nearly 2.6 million people we currently serve, but for millions more around the world,” Dudum said.

Revenue Rises, but GAAP Loss Reflects Restructuring Costs

Chief Financial Officer Yemi Okupe said first-quarter revenue grew 4% year over year to $608 million. Subscribers increased 9% to nearly 2.6 million, while adjusted EBITDA was $44 million, representing a 7% adjusted EBITDA margin.

The company reported a GAAP net loss of $92 million in the quarter. Okupe said the result reflected non-recurring restructuring costs tied to the company’s weight-loss pivot, transaction costs related to M&A activity and legal costs.

Hims & Hers generated $89 million of cash flow from operations and $53 million of free cash flow in the quarter. The company ended the period with $751 million in available cash and short-term investments, and $225 million remaining under its share repurchase program.

Okupe said the company incurred approximately $33 million in restructuring costs, primarily related to write-downs tied to its compounded GLP-1 supply chain. About $28 million of those charges affected gross margin, reducing it by roughly five percentage points. Gross margin was 65% on a GAAP basis and 70% excluding those costs.

Weight-Loss Strategy Shifts Toward Branded GLP-1 Products

Executives said the company’s March shift in weight loss is central to its updated outlook. Okupe said Hims & Hers discontinued advertising of compounding products and prioritized branded products such as Wegovy Pill and Wegovy Pen to expand the population it can serve.

Dudum said the company fulfilled more than 125,000 shipments of Wegovy products within six weeks of introducing direct access to Novo Nordisk’s GLP-1 products on the platform. He said customers have responded well to the Wegovy Pill’s price point, efficacy and safety profile.

Okupe said the company is on track to add “north of 100,000 new subscribers per month” within its weight-loss specialty. He said early engagement has been strong, with nearly 90% of those users downloading the app and the average subscriber interacting with a provider three times in the first month.

The company also said providers on its platform can now send prescriptions for Zepbound vials and KwikPen, as well as Sonder, to the LillyDirect pharmacy and access self-pay pricing for Hims & Hers customers.

In response to an analyst question, Okupe said the contribution dollar profile of a branded weight-loss customer and a legacy compounded customer is “roughly comparable” on a dollar basis. He said the broader assortment is driving strong demand and creating opportunities for cross-selling other specialties over time.

2026 Outlook Raised for Revenue

Hims & Hers guided for second-quarter revenue of $680 million to $700 million, representing year-over-year growth of 25% to 28%. The company expects second-quarter adjusted EBITDA of $35 million to $55 million, implying a 7% adjusted EBITDA margin at the midpoint.

For the full year, the company raised its 2026 revenue outlook to $2.8 billion to $3 billion, representing year-over-year growth of 19% to 28%. It expects adjusted EBITDA of $275 million to $350 million, implying an 11% adjusted EBITDA margin at the midpoint.

Okupe said the updated outlook does not include the planned acquisition of Eucalyptus because the timing of the closing remains unknown. He said the company expects the transaction to close in the second half of the year and expects to make a payment of approximately $240 million at closing, with remaining guaranteed consideration and earn-out payments extending through early 2029.

Management reiterated long-term 2030 ambitions of at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA.

Technology, AI and New Specialties Remain Investment Priorities

Chief Technology Officer Mo Elshenawy said the company is investing in data and AI to support a broader end-to-end care platform. He said Hims & Hers has built an AI team of nearly 40 members, including senior AI engineers, applied scientists and PhDs from institutions including MIT and Berkeley.

Elshenawy said the company has an AI copilot live on the provider side of the platform that drafts contextual responses for care coaches, which are reviewed before being sent. He also said the company recently launched Labs AI, an agent that explains biomarker results in the context of each customer, flags relevant issues and recommends escalation to a provider when appropriate.

Elshenawy said the company plans to launch an AI weight-loss companion that can support customers, proactively reach out at key points and prompt clinician engagement when needed.

Dudum said the Labs companion and upcoming weight-loss companion are early steps toward multiple agents supporting each stage of the customer journey across specialties.

The company also highlighted newer specialties including testosterone, menopause and labs. Dudum said the testosterone offering is now serving tens of thousands of men and that 95% of Hims customers relying on the company for testosterone support saw an increase in testosterone levels within two months.

International Expansion and Peptides Opportunity

Dudum said the planned acquisition of Eucalyptus would expand the company’s consumer health presence across Australia, the U.K., Germany, Japan and Canada. He said the company typically refines newer categories in the U.S. before bringing them to other regions.

Executives also discussed the emerging peptide therapy category. Dudum said Hims & Hers is “extremely excited” about the category but does not expect to be first to market. He said the company will wait until it can meet high standards for physician oversight, data transparency, validated supply chains and clinical protocols.

Dudum said the company’s 503A compounding footprint and U.S.-based peptide manufacturing facility could support individualized dosing and a domestic supply chain. He said Hims & Hers expects more regulatory clarity from the FDA in July on some peptides and potentially more information later in the year.

“We likely will not be first to market, but when we do, we’ll make sure that we feel like we’ve got everything done the right way,” Dudum said.

About Hims & Hers Health NYSE: HIMS

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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