Hims & Hers (HIMS) Raised Guidance. Can Growth Survive Its GLP-1 Margin Reset?
Jeff Lewis
Fri, August 14, 2026 at 8:44 PM GMT+5:30
9 min read
- HIMS
+0.66%
Hims & Hers Health, Inc. (NYSE:HIMS) shares fell over 6% in extended trading on August 10 after the telehealth company delivered another quarter of rapid growth alongside sharply weaker profitability. Revenue rose 38% year over year to $753.2 million, subscribers increased 19% to 2.89 million, and Monthly Revenue per Average Subscriber climbed 21% to $92. The company also raised its full-year revenue outlook to $3.1 billion to $3.3 billion from $2.8 billion to $3.0 billion
The earnings line told a different story. Hims reported an $86.3 million net loss, equal to 37 cents per share, compared with a $42.5 million profit a year earlier. Analysts surveyed by LSEG had expected a loss of just 1 cent per share. Gross margin fell to 64% from 76%
The market is no longer asking whether Hims & Hers Health, Inc. (NYSE:HIMS) can attract weight-loss customers. The branded GLP-1 pivot has already answered that question. The issue is whether those customers, international expansion, and personalized care can eventually replace the unusually attractive economics of compounded treatments
BULL CASE
The strongest part of the quarter was that demand survived a major change in the product model
In March, Hims expanded its branded weight-loss assortment through an agreement with Novo Nordisk and stopped broadly advertising compounded GLP-1 drugs. That could have created a deep revenue gap. Instead, management said the branded shift was a key driver of renewed domestic growth. U.S. revenue increased 16% year over year to $621.8 million
Hims & Hers Health, Inc. (NYSE:HIMS) ended the quarter with approximately 307,000 more subscribers than it had at the end of March. Those were consolidated net additions and included subscribers acquired with Eucalyptus, which joined Hims during June. Even with the acquisition contribution, the increase shows that the platform continued expanding during the branded-drug transition
Monthly Revenue per Average Subscriber reached $92. Hims & Hers Health, Inc. (NYSE:HIMS) calculates the metric using total revenue, so it includes one-time purchases as well as revenue from Eucalyptus. Excluding Eucalyptus, the figure would have been $90, while excluding one-time purchases would have reduced the reported amount by approximately another $10
That composition makes the metric broader than recurring subscription revenue, but it also shows how Hims & Hers Health, Inc. (NYSE:HIMS) is monetizing customers through a wider mix of products and transactions. Branded weight-loss drugs generate more revenue per user, although much of that benefit is offset by higher product costs. Management said retention among newer branded weight-loss cohorts was tracking in line with expectations, while early users receiving a more immersive app experience showed lower cancellation rates.
