Hims & Hers Health reported $753.2 million in second-quarter revenue, exceeding analyst consensus of $700 million, and said it reached 2.891 million subscribers against expectations of 2.75 million. The telehealth operator raised full-year 2026 revenue guidance to $3.2 billion from prior forecasts, compared with analyst estimates of $2.92 billion.
Net income fell to a loss of $78.8 million from a loss of $11.9 million in the prior-year quarter, driven by $48 million in legal contingencies and acquisition-related costs. Earnings per share came to negative $0.33 against consensus of positive $0.13, though Hims reported adjusted EBITDA of $60 million against a $47 million estimate.
Gross margin contracted to 64 percent from earlier guidance of 69 percent. The subscriber count represents a 20 percent increase from an estimated base of 2.4 million one year prior. GLP-1 drugs including semaglutide and tirzepatide have become a core revenue driver alongside sexual health and dermatology services.
For the third quarter, Hims guided revenue between $880 million and $900 million, above the $793 million consensus. Full-year adjusted EBITDA guidance stands at $300 million against estimates of $292 million. The company's one-year net revenue growth rate reached 38.4 percent, compared with 29 percent growth in the prior year.
Hims operates in a market where margins have narrowed industry-wide as GLP-1 drugs became a core revenue driver. Competitor Roman, operated by Ro Holdings, and Amazon Pharmacy's expansion into telehealth have both pressured pricing and customer acquisition costs. Hims' subscriber growth rate of 20 percent annually outpaced revenue growth rate of 38.4 percent.
The legal contingency charge of $48 million did not specify the underlying claims, though Hims has faced prior litigation tied to GLP-1 drug claims and regulatory scrutiny from state medical boards. The company's adjusted EBITDA guidance for the full year implies a margin of 9.4 percent on $3.2 billion in revenue, compared with 10 percent implied by the initial estimate, a 60-basis-point decline that mirrors the Q2 gross margin miss.
Hims raised full-year guidance by $280 million on revenue despite missing gross margin targets. If the company achieves the $880 million Q3 midpoint and maintains prior implied guidance for Q4, Q3 sequential revenue growth would reach 16.9 percent, compared with 8.2 percent sequential growth from Q1 to Q2.
