Hims & Hers Health, Inc. (HIMS) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended June 30, 2026. Hims & Hers Health, Inc. operates a consumer-first digital health platform providing access to treatments for sexual health, hair loss, hormone health, weight loss, dermatology, and mental health. The company operates globally with significant recent expansion into Australia, Japan, the UK, Germany, Ireland, and Canada through strategic acquisitions.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Revenue | $753.2 million | $544.8 million | $1,361.3 million | $1,130.8 million |
| Gross Profit | $480.8 million | $416.2 million | $877.6 million | $846.9 million |
| Gross Margin | 64% | 76% | 64% | 75% |
| Net (Loss) Income | $(86.3) million | $42.5 million | $(178.4) million | $92.0 million |
| Adjusted EBITDA | $60.3 million | $82.2 million | $104.6 million | $173.3 million |
| Operating Cash Flow | $(35.9) million | $(19.1) million | $53.4 million | $90.0 million |
| Cash & Equivalents | $609.8 million (as of June 30, 2026) | |||
| Total Debt (Convertible Notes) | $1.4 billion principal ($1.37 billion net carrying value) |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 38% year-over-year in Q2 2026, driven by a 16% increase in U.S. revenue and a 1,641% surge in Rest of the World revenue. International growth was primarily fueled by the acquisition of Eucalyptus (closed June 2026) and prior acquisitions (Zava, Medici).
- Profitability Decline: The company reported a net loss of $86.3 million in Q2 2026 compared to net income of $42.5 million in Q2 2025. This reversal was driven by significant increases in operating expenses and one-time charges.
- Expense Increases:
- General & Administrative (G&A): Increased 146% to $165.4 million, largely due to a $47.5 million accrual for legal contingencies related to FTC proceedings and increased acquisition-related costs.
- Cost of Revenue: Increased 112% to $272.4 million, driven by higher product costs for weight loss offerings and $28.5 million in non-recurring restructuring charges (inventory write-downs) related to a strategic shift in U.S. weight loss offerings.
- Acquisitions: The company completed the acquisition of Eucalyptus for a total purchase price of $968.5 million (including deferred and contingent consideration) and YourBio for $153.0 million. Goodwill increased by $859.8 million during the six-month period.
Guidance, Outlook, Risks, and Unusual Items
- Strategic Shift (Weight Loss): In March 2026, the company announced a strategic shift for its U.S. weight loss offering to align with global approaches, focusing on branded GLP-1 medications and limiting compounded GLP-1 access. This resulted in $38.1 million of restructuring charges YTD 2026.
- Legal Contingencies: The company recorded a $60 million accrual for legal contingencies related to an FTC complaint filed in July 2026 regarding privacy, advertising, and subscription practices. A related putative class action is also pending.
- Regulatory Risks: The company faces ongoing scrutiny from the FDA and HHS regarding compounded GLP-1 products. In February 2026, HHS referred the company to the DOJ for investigation. The company also faces risks related to the regulation of laboratory developed tests (LDTs) and specimen collection kits.
- Liquidity: The company has a working capital deficit of $98.6 million as of June 30, 2026, primarily due to deferred consideration for the Eucalyptus acquisition. However, management believes existing cash resources and the $175 million revolving credit facility are sufficient for the next 12 months.
- Debt Issuance: In May 2026, the company issued $402.5 million of 0% convertible senior notes due 2032, netting $389.5 million in proceeds.
Key Facts for Investor Verification
- FTC Litigation Outcome: Verify the status and potential financial impact of the FTC lawsuit filed in July 2026, for which a $60 million reserve has been established.
- Weight Loss Transition: Monitor the execution of the strategic shift from compounded to branded GLP-1 products and its impact on customer retention and gross margins.
- Acquisition Integration: Assess the integration progress and revenue contribution of the Eucalyptus acquisition, which closed in June 2026.
- Regulatory Compliance: Track developments in the DOJ investigation and FDA enforcement actions regarding compounded semaglutide and laboratory testing services.
- Debt Covenants: Review compliance with the Revolving Credit Facility covenants, specifically the total leverage ratio and interest coverage ratio, given the recent increase in debt and operating losses.