Hims & Hers Health, Inc. 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Hims & Hers Health reported second quarter 2020 revenue of more than $753 million, a nearly 40% year-over-year increase, with nearly 3 million subscribers globally after adding 300,000 net new subscribers in the quarter.
- Domestic revenue grew 16% year over year to $622 million, driven by expanded assortment and elevated consumer experience, particularly in branded weight loss products.
- International revenue increased over 17-fold year over year to $131 million, including $40 million contributed by the acquisition of eucalyptus, expanding presence in Europe, Australia, and Japan.
- Adjusted EBITDA was $60 million, representing an 8% margin, improving by one point quarter over quarter despite gross margin compression due to mix shift toward weight loss and international business.
- Gross margin was 64%, down approximately six points quarter over quarter, reflecting strategic scaling of specialties and markets.
- GAAP net income was a loss of $86 million, impacted by $81 million of non-recurring costs related to acquisition, restructuring, and legal contingencies.
- Operating cash flow was negative $36 million and free cash flow was negative $68 million in the quarter, with over $840 million in cash and short-term investments at quarter end.
- The company completed a $400 million receivables facility and a convertible debt offering over $400 million to strengthen the balance sheet.
- The subscriber base is increasingly multi-specialty, with testosterone therapy scaling rapidly and expected to become the sixth US specialty to reach a $100 million annual run rate.
- The acquisition of eucalyptus made Hims & Hers the leading global consumer health platform with three international markets pacing above $100 million annual run rate each.
- The company is investing heavily in AI and technology to deliver a unified, AI-native health experience that improves engagement and reduces non-clinical support tasks by nearly 50%.
- The AI platform launched for Hers weight loss customers has tripled messaging engagement and is expected to roll out to more customers and categories.
- The company is developing a peptides category with US-manufactured products and clinical-led guidance, awaiting FDA decisions on six peptides recommended by the PCAC hearing.
- Management emphasized the importance of clinician oversight in AI-powered care and highlighted the closed-loop data system tracking intake, treatment, follow-up, and outcomes.
- Partnerships with pharmaceutical innovators like Novo Nordisk are expanding the addressable market, particularly in weight loss, with Hims & Hers helping many patients access the Wegovy pill.
- The company’s infrastructure includes over 1,000,000 square feet of pharmacy and lab testing facilities and expertise in sterile compounding, supporting expansion into complex categories.
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Transcript
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I will now hand the conference over to William Newby, Director of Investor Relations.
Bill, please go ahead. Good afternoon, everyone, and welcome to the Hims & Hers Health second quarter 2026 earnings call.
On the call with me today is Andrew Dudum, our Co-founder and Chief Executive Officer, Yemi Okupe, our Chief Financial Officer, and Mo Elshenawy, our Chief Technology Officer. Before I hand it over to Andrew, I need to remind you of legal safe harbor and cautionary declarations. Certain statements and projections of future results made in this presentation constitute forward-looking statements that are based on, among other things, our current market, competitors and regulatory expectations, and are subject to risks and uncertainties that could cause actual results to vary materially. We take no obligation to update publicly any forward-looking statement after this call, whether as a result of new information, future events, changes in assumptions, or otherwise.
The risks, uncertainties, and other factors that could cause actual results to differ from our forward-looking statements are described in our earnings release and SEC filings. Please see our recent earnings release and most recently filed 10-K and 10-Q reports for a discussion of these risk factors as they relate to forward-looking statements. In today's presentation, we also have certain non-GAAP financial measures. We refer you to the reconciliation tables to the most directly comparable GAAP financial measures contained in today's press release. You can find this information as well as a link to today's webcast at investors.hims.com. After the call, this webcast will be archived on the website for 12 months. With that, I will turn the call over to Andrew.
Thanks, Bill. Good afternoon, everyone, and thank you for being here. This quarter, we made significant progress on building a first of its kind health experience that proves it is possible to deliver access to world-class care on a global scale at a reasonable price. As our customer base grows and our influence on the industry deepens, we are showing that a business can both take care of people and be profitable. Before Yemi walks us through financials, I want to highlight three key areas driving our continued growth. First, our investment in AI and technology is delivering a health experience that we believe no other company can replicate. Our CTO, Mo Elshenawy, is on the call today to walk us through how that is coming to life in both deeper customer relationships and increasing business efficiencies.
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