A month has gone by since the last earnings report for Hims & Hers Health, Inc. (HIMS). Shares have added about 15.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Hims & Hers Health due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Hims & Hers Health, Inc. before we dive into how investors and analysts have reacted as of late.
Hims & Hers Post Q1 Earnings Miss, Gross Margin Down
Hims & Hers Health reported quarterly adjusted loss per share of 18 cents in first-quarter 2026, against the year-ago period’s adjusted earnings per share (EPS) of 20 cents and the Zacks Consensus Estimate of EPS of 4 cents.
HIMS’ Revenues in Detail
Hims & Hers registered revenues of $608.1 million in the first quarter, up 3.8% year over year. However, the figure lagged the Zacks Consensus Estimate by 1.9%.
Solid revenues from the Rest of the World segment drove the top line.
Hims & Hers’ Geographical Results
In the first quarter of 2026, revenues in the United States declined 8.4% year over year to $529.9 million.
Rest of the World revenues grossed $78.2 million, up from the year-ago quarter’s $7.3 million.
During the reported quarter, subscribers were 2.6 million, up 9.2% year over year.
Monthly online revenue per average subscriber decreased 5.9% year over year to $80 in the first quarter. Per management, the decrease was primarily due to the shift to shorter shipping cadences for certain of HIMS’ offerings.
HIMS’ Margin Analysis
In the first quarter of 2026, Hims & Hers’ gross profit decreased 7.9% year over year to $396.8 million. The gross margin contracted 825 basis points (bps) to 65.2%.
Marketing expenses decreased 3.9% year over year to $222 million, while technology and development expenses jumped 56.9% year over year to $46.9 million. General and administrative expenses surged 125.6% year over year to $109.7 million, while operations and support expenses increased 53.1% year over year to $96.5 million. Operating expenses of $475.1 million increased 27.4% year over year.
Operating loss totaled $78.3 million against the year-ago quarter’s operating profit of $57.9 million.
Hims & Hers’ Financial Position
Hims & Hers exited first-quarter 2026 with cash and cash equivalents and short-term investments of $750.9 million compared with $577.5 million at the end of 2025.
Net cash provided by operating activities at the end of first-quarter 2026 was $89.4 million compared with $109.1 million a year ago.
HIMS’ Outlook
Hims & Hers has provided its revenue outlook for the second quarter and raised the same for 2026.
The company projects revenues for the second quarter of 2026 in the range of $680 million to $700 million, reflecting an uptick of 25%-28% year over year.
For the full year, HIMS now projects revenues in the range of $2.8 billion to $3 billion (representing growth of 19%-28% from 2025 levels), up from the prior outlook of $2.7 billion to $2.9 billion (representing growth of 15%-24% from 2025 levels).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -125.7% due to these changes.
VGM Scores
Currently, Hims & Hers Health has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Hims & Hers Health has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Hims & Hers Health belongs to the Zacks Medical Info Systems industry. Another stock from the same industry, 10x Genomics (TXG), has gained 46.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
10x Genomics reported revenues of $150.84 million in the last reported quarter, representing a year-over-year change of -2.6%. EPS of -$0.10 for the same period compares with -$0.36 a year ago.
For the current quarter, 10x Genomics is expected to post a loss of $0.23 per share, indicating a change of -182.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -6.5% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for 10x Genomics. Also, the stock has a VGM Score of B.
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Hims & Hers Health, Inc. (HIMS): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).