8-K: Hims & Hers Reports Q1 2026 Results, Raises Full Year Guidance

Hims & Hers Health, Inc. announced first quarter 2026 financial results, reporting revenue of $608 million, a 4% year-over-year increase, and nearly 2.6 million subscribers, while raising full-year revenue and Adjusted EBITDA guidance.

Summary

• Hims & Hers reported first quarter 2026 revenue of $608.1 million, a 4% increase compared to $586.0 million in the first quarter of 2025.
• The company's subscriber base grew to nearly 2.6 million, a 9% increase year-over-year.
• Gross margin decreased to 65% in Q1 2026 from 73% in Q1 2025.
• Net loss for the quarter was $92.1 million, a significant change from a net income of $49.5 million in the prior year's quarter.
• Adjusted EBITDA was $44.3 million, down from $91.1 million in Q1 2025.
• Net cash provided by operating activities was $89.4 million, compared to $109.1 million in the prior year.
• Free Cash Flow increased to $53.0 million from $50.1 million year-over-year.
• The company raised its full-year 2026 revenue guidance to a range of $2.8 billion to $3.0 billion and updated Adjusted EBITDA guidance to $275 million to $350 million.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to the significant decline in profitability and margins, despite revenue growth and raised guidance. The increased net loss and reduced Adjusted EBITDA are key concerns.

Positives

• Total revenue increased by 4% year-over-year to $608.1 million.
• Subscriber count reached nearly 2.6 million, up 9% year-over-year.
• Rest of the World revenue saw a significant 969% increase.
• Free Cash Flow improved to $53.0 million from $50.1 million.
• Full-year 2026 revenue guidance was raised to $2.8 billion - $3.0 billion.
• Full-year 2026 Adjusted EBITDA guidance was raised to $275 million - $350 million.
• The company is investing in comprehensive diagnostics and technology infrastructure.
• Early demand signals for branded GLP-1 products are strong.

Negatives

• Gross margin declined to 65% from 73% year-over-year.
• Net loss widened to $92.1 million from a net income of $49.5 million.
• Adjusted EBITDA decreased to $44.3 million from $91.1 million.
• Net cash provided by operating activities decreased to $89.4 million from $109.1 million.
• Monthly Revenue per Average Subscriber decreased by 6% to $80.
• United States revenue saw a slight decrease of 8% to $578.7 million.
• Significant restructuring and other related charges of $33.5 million were incurred.

Risks

• The company faces evolving legal and regulatory requirements, including healthcare, privacy, and consumer protection laws.
• Actual results may differ materially from forward-looking statements due to various risks and uncertainties.
• The proposed acquisition of Eucalyptus is subject to customary closing conditions, including regulatory approvals.
• Competition in the health and wellness platform market is intense.
• Changes in product or offering mix and market acceptance of new products could impact results.
• Customer acquisition costs and operating efficiencies are subject to market dynamics.
• The company's ability to scale its business and expand internationally carries inherent risks.

Future Outlook

For the second quarter of 2026, Hims & Hers expects revenue between $680 million and $700 million, and Adjusted EBITDA between $35 million and $55 million. For the full year 2026, the company now projects revenue in the range of $2.8 billion to $3.0 billion and Adjusted EBITDA between $275 million and $350 million. These projections exclude any contributions from the proposed Eucalyptus acquisition.

Management Comments

• "2026 is a defining year for Hims & Hers. We're not just growing, we're pulling away from the field on our path to becoming the world's largest consumer health platform."
• "As we exit the first quarter, our domestic business is accelerating, we're expanding into new categories and countries, and more people than ever are relying on us for access to personal, data-driven care."
• "We're investing with conviction in comprehensive diagnostics and a technology infrastructure built to make every interaction smarter than the last."
• "In the first quarter, we made a strategic pivot that expanded our assortment of branded GLP-1 products, and early demand signals show our consumer reach broadening meaningfully."
• "With nearly 2.6 million subscribers across a diverse breadth of specialties, we have the scale to invest in technology and operations to leverage our closed-loop ecosystem."
• "We expect growth to accelerate from here, and have high conviction in our 2030 targets of at least $6.5 billion in revenue and $1.3 billion in Adjusted EBITDA."

Industry Context

StockSavvy.ai notes that Hims & Hers's results reflect the ongoing expansion and consolidation within the digital health and wellness sector. The company's strategic pivot towards GLP-1 products and international expansion aligns with broader industry trends focused on chronic condition management and personalized care delivery. The increased competition and evolving regulatory landscape are key factors for all players in this space.

Comparison to Industry Standards

• While Hims & Hers reported a 4% year-over-year revenue increase, many direct-to-consumer health platforms are experiencing higher growth rates, often in the double digits, driven by increased demand for telehealth and specialized treatments.
• The decline in gross margin from 73% to 65% is a concern, as industry benchmarks for profitable digital health companies often aim for gross margins above 70%, indicating potential pressure on pricing or increased cost of goods sold.
• The significant net loss and reduction in Adjusted EBITDA suggest that Hims & Hers is prioritizing growth and investment over immediate profitability, a strategy that can be common in rapidly expanding markets but requires careful management to ensure long-term sustainability.
• Competitors like Ro and GoodRx are also navigating similar challenges in customer acquisition and retention, with varying success in maintaining profitability while scaling.

Stakeholder Impact

• Shareholders: Potential dilution concerns if future capital raises are needed to offset losses; impact on stock price due to weaker-than-expected profitability metrics.
• Employees: Increased focus on operational efficiency and cost management may impact resource allocation and hiring.
• Customers: Continued access to personalized care and expanded product offerings, but potential for price adjustments due to margin pressures.
• Suppliers: Potential for renegotiation of terms due to cost-saving initiatives.

Next Steps

• Continue to invest in comprehensive diagnostics and technology infrastructure.
• Expand into new categories and countries.
• Leverage scale to invest in technology and operations to elevate subscriber experience and achieve an industry-leading cost structure.
• Complete the proposed acquisition of Eucalyptus, subject to regulatory approvals.
• Transition to an annual shareholder letter while continuing quarterly earnings calls and releases.

Key Dates

Recommendation

While the company raised its full-year guidance, the significant deterioration in profitability (net loss and reduced Adjusted EBITDA) and declining gross margins in the current quarter are concerning. The revenue growth, though positive, has slowed. The raised guidance suggests management confidence, but the current financial performance indicates a need for caution. A 'hold' recommendation allows investors to monitor the execution of the strategy and the impact of the Eucalyptus acquisition before making a stronger commitment.

Keywords

Hims & Hers, 8-K, Q1 2026 Earnings, Health and Wellness Platform, Revenue Guidance, Adjusted EBITDA, Subscribers, GLP-1