Hims & Hers Health beat second-quarter revenue expectations by $53.2 million and raised its full-year 2026 outlook, citing accelerated domestic growth and a 17-fold jump in international revenue following the completion of its Eucalyptus acquisition in June.
The telehealth company reported Q2 revenue of $753.2 million, up 38 percent year-over-year and above analyst estimates of $700 million, according to the earnings announcement. It raised FY26 revenue guidance to a range of $3.1 billion to $3.3 billion from prior expectations of $2.93 billion. The company added 2.891 million subscribers in the quarter, up 19 percent year-over-year.
Domestic revenue grew 16 percent year-over-year to $621.8 million, while the international segment surged to $131.4 million on the back of Eucalyptus, which closed June 2. Adjusted EBITDA came in at $60.3 million, beating the $47.2 million estimate, though it fell 27 percent year-over-year. Gross margin compressed to 64 percent from 76 percent in the prior year, a 1,200 basis-point decline. Free cash flow was negative $68.2 million.
The company guided Q3 revenue to $880 million to $900 million, above consensus estimates of $793 million. For adjusted EBITDA in the third quarter, it expects $75 million to $95 million, below the $93.5 million consensus. The adjusted EBITDA margin is expected to land between 9 and 11 percent for Q3.
Hims & Hers said it is building conviction in its 2030 targets of at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA. The company faces continued margin pressure as it scales the international footprint. Free cash flow turned negative despite higher revenue as the company deploys capital in new markets.
Eucalyptus brought roughly $131.4 million of the company's $753.2 million total quarterly revenue, meaning the acquisition added the equivalent of 17 percent to the top line in a single quarter.
Investors will monitor whether Hims & Hers can expand margins while maintaining the pace of international expansion. The guidance raise on revenue paired with margin guidance that trails consensus shows the company is prioritizing growth velocity over profitability in the near term.
