Hims & Hers Q2 2026: revenue grew 38%, gross profit grew 15%

Hims & Hers beat revenue by roughly 8%, beat adjusted EBITDA by roughly 28%, raised full-year revenue guidance by about $300 million against where the street sat, and guided the third quarter more than 12% above consensus.

The explanation is not in the guidance, which is genuinely strong. It is in the distance between two numbers on the first page of the income statement.

Revenue grew 38%. Gross profit grew 15%.

	Q2 2026	Q2 2025	Change
Revenue	$753.2M	$544.8M	+38.2%
Cost of revenue	$272.4M	$128.6M	+111.8%
Gross profit	$480.8M	$416.2M	+15.5%
Gross margin	64%	76%	−12 pts

Cost of revenue grew almost three times as fast as revenue. Twelve points of gross margin left the business in twelve months, and the company kept $64.6 million of additional gross profit out of $208.4 million of additional revenue — an incremental gross margin of about 31%, against a 76% business a year ago.

The half-year picture is starker still, because Q1 was worse: H1 revenue grew 20.4% while H1 gross profit grew 3.6%.

The cause is disclosed and is not a mystery. In the first half the company “evolved our United States weight loss offering to match our global approach towards providing access to branded GLP-1 medications, and offering access to compounded GLP-1 medications through our platform on a limited scale.”

That is the whole margin story in one sentence, and the reported numbers are consistent with it: a platform that dispenses a branded drug it buys in carries far more cost of revenue per prescription than one that supplies a compounded equivalent. The revenue per customer goes up — monthly revenue per average subscriber rose 21% to $92 — while the margin on it goes down, because much of the extra dollar is drug cost passing through. Cost of revenue growing 112% against 38% revenue growth is what that looks like on an income statement.

So the headline growth rate and the margin decline are the same event seen from two ends. Revenue is being bought with gross margin.

Did Hims & Hers beat its own guidance in Q2 2026?

Yes, though not like-for-like: guidance excluded the Eucalyptus acquisition. Revenue of $753.2 million came in above the top of the $680–700 million range Hims & Hers guided to in its May 11, 2026 8-K, and adjusted EBITDA of $60.3 million came in above the top of its $35–55 million range. The caveat: that guidance explicitly excluded any contribution from the Eucalyptus acquisition, which closed in June, and the results release does not say how much Eucalyptus added, so a like-for-like size of the beat cannot be worked out from the filing. Against the year-ago quarter, revenue rose 38% while adjusted EBITDA fell from $82.2 million. For the full year, the company raised revenue guidance to $3.1–3.3 billion from $2.8–3.0 billion and changed adjusted EBITDA guidance to $275–325 million from $275–350 million, lowering the top of the range.

The 38% is mostly not the United States

	Q2 2026	Q2 2025	Change
United States revenue	$621.8M	$537.3M	+16%
Rest of world revenue	$131.4M	$7.5M	+1,641%
Total	$753.2M	$544.8M	+38%

The domestic business — which is essentially all of the company anyone was valuing a year ago — grew 16%. The other 22 points of growth came from an international business that was $7.5 million a year ago and is now $131.4 million.

Management is explicit that the Eucalyptus acquisition, which closed in June 2026, strengthened that line. June is one month of a three-month quarter, which cuts both ways: it means the international figure is not yet a full run rate, and it means Q3 will carry a full quarter of it. That is a large part of why third-quarter revenue is guided to $880–900 million from $753 million — a sequential jump of $127–147 million, in a business whose domestic line grew 16% year over year.

Note also the coincidence worth checking: gross profit grew 15.5%, and US revenue grew 15.7%. The company’s entire gross-profit growth this quarter is approximately the size of its domestic revenue growth. That is arithmetic, not causation — the international business carries its own costs and margins — but it is a useful sanity check on how much the acquired revenue is contributing below the top line.

What is inside the $60.3 million of adjusted EBITDA

Adjusted EBITDA of $60.3 million beat a consensus near $47 million. It is also down 27% from $82.2 million a year ago, on 38% more revenue. Here is the full bridge from the reported net loss, as the company discloses it:

Q2 2026	Amount
Net loss (GAAP)	$(86.3)M
Legal contingencies	+$47.5M
Stock-based compensation	+$42.1M
Depreciation and amortisation	+$29.5M
Acquisition and transaction-related costs	+$28.8M
Restructuring and other related charges	+$4.6M
Change in fair value of liabilities	+$4.2M
Payroll tax on stock compensation	+$2.0M
Impairment of long-lived assets	+$1.1M
Interest income and expense, net	−$2.3M
Change in fair value of equity securities	−$4.7M
Benefit from income taxes	−$6.3M
Adjusted EBITDA	$60.3M

Three observations a reader should hold.

The largest single add-back is a legal contingency of $47.5 million — $62.5 million for the half. Legal contingencies are accrued because a payment is considered probable and estimable. Adding them back is a defensible convention, but it is not the same kind of item as depreciation: it is money the company expects to part with.

The definition is not the one used a year ago. In its first-quarter release (Form 8-K filed May 11, 2026), the company said that in connection with the weight-loss strategic shift, “we revised our definition of Adjusted EBITDA to include restructuring and other related charges”; the Q2 release repeats it. Those charges were $33.5 million in Q1 and $4.6 million in Q2, $38.1 million for the half, against nothing in 2025. The Q2 guide of $35–55 million was issued under the revised definition, so the beat against it is like-for-like; without the $4.6 million add-back, Q2 adjusted EBITDA would have been about $55.7 million (our arithmetic) — still above the top of the range, but only just. The year-over-year comparison with $82.2 million is the one the change flatters.

Deal costs are running at $28.8 million a quarter. For a company completing acquisitions, these recur as long as the acquisitions do.

Underneath all of it, the GAAP position moved a long way: from $42.5 million of net income in Q2 2025 to an $86.3 million net loss, and from $26.7 million of operating income to a $97.2 million operating loss. Total operating expenses rose from $389.5 million to $578.0 million, with general and administrative alone up 146%, from $67.3 million to $165.4 million.

The guidance asks for margin expansion while margin is contracting

This is the tension the Q3 report will settle.

Full year 2026	Company guidance
Revenue	$3.1–3.3 billion
Adjusted EBITDA	$275–325 million (9–10% margin)

Set that against the half already delivered.

	Revenue	Adjusted EBITDA	Margin
H1 2026 actual	$1,361.3M	$104.6M	7.7%
H2 2026 implied	~$1,739–1,939M	~$170–220M	~9.8–11.4%

The second half has to deliver roughly 1.3 times the first half’s revenue and roughly 1.6 to 2.1 times its adjusted EBITDA — which means the adjusted EBITDA margin has to expand by about two to four points, in the same year gross margin fell twelve.

(That 9.8–11.4% range pairs the low end of the revenue guide with the low end of the EBITDA guide, and the high with the high, which is how guidance ranges are normally meant to be read. Crossing them — top-end revenue on bottom-end profit, or the reverse — widens the implied second-half margin to roughly 8.8–12.7%.)

That is not impossible. Marketing was $262.2 million in the quarter, 34.8% of revenue, and a business with a larger subscriber base can spend proportionally less to grow. Management points to “meaningful efficiencies we’re generating from our investments in AI and technology.” And the Q3 guide of $75–95 million of adjusted EBITDA on $880–900 million of revenue is already a 9–11% margin, so the step is being taken immediately rather than deferred to Q4.

But it does mean the full-year raise is not simply “more revenue at the same economics.” It embeds an operating-leverage assumption that has not yet shown up in the reported numbers.

Working the guide through to the last quarter: with H1 actual and the Q3 guide subtracted, Q4 revenue is implied at roughly $839–1,059 million and Q4 adjusted EBITDA at roughly $75–145 million. A $220 million spread on a quarter’s revenue and a near-doubling spread on its profit is a wide range for a quarter that starts in seven weeks.

Cash, and a balance sheet worth a second look

	Q2 2026	Q2 2025
Net cash used in operating activities	$(35.9)M	$(19.1)M
Free cash flow	$(68.2)M	$(69.4)M
Cash (30 June)	$609.8M	—

Free cash flow was negative in the quarter, as it was a year ago, and half-year free cash flow of $(15.2) million turned a $53.4 million operating inflow into an outflow after capital spending.

One line in the half-year cash-flow statement deserves attention rather than a conclusion: receivables rose $329.0 million and accounts payable rose $323.8 million. Both are extraordinary against $1.36 billion of half-year revenue, and they very nearly offset. A gross-up of that shape on both sides of working capital is what you would expect when a business starts moving high-priced branded drugs — buying and billing at scale that did not exist a year ago — possibly combined with an acquired balance sheet. It is not evidence of a problem. It is a change in the shape of the business that a reader should understand before assuming next year’s cash conversion looks like last year’s.

What management put on the record

Item	Company figure
Subscribers	2.891 million, +19% year over year
Monthly revenue per average subscriber	$92, +21% ($84 for the half, +4%)
Q3 2026 revenue	$880–900 million
Q3 2026 adjusted EBITDA	$75–95 million (9–11% margin)
Full year 2026 revenue	$3.1–3.3 billion
Full year 2026 adjusted EBITDA	$275–325 million (9–10% margin)
2030 targets	At least $6.5 billion of revenue and $1.3 billion of adjusted EBITDA
Strategy	Branded GLP-1 access in the US with compounded access “on a limited scale”; Eucalyptus closed June 2026

The bear case, stated fairly

1. Gross profit grew 15.5% on 38.2% revenue growth. Cost of revenue grew 112%.
2. Gross margin fell twelve points, from 76% to 64%, and the half-year figure shows it is not a one-quarter effect.
3. The domestic business grew 16%. The rest of the headline came from an international line that was $7.5 million a year ago and from an acquisition that closed in June.
4. GAAP swung from $42.5 million of profit to an $86.3 million loss, and from operating income to a $97.2 million operating loss.
5. Adjusted EBITDA fell 27% year over year and depends on a $47.5 million legal-contingency add-back, $28.8 million of deal costs and $42.1 million of stock compensation — under a definition widened in Q1 2026.
6. The full-year guide requires two to four points of adjusted EBITDA margin expansion in a year gross margin fell twelve.
7. Free cash flow was negative in the quarter, and the working-capital gross-up on both sides of the balance sheet changes the cash-conversion profile.

The bull case is real and is why the guide moved. Revenue beat by 7.8% and full-year revenue guidance went up roughly $300 million against consensus, which is a raise larger than the quarter’s beat — the opposite of what a company banking a one-off does. Subscribers reached 2.891 million, up 19%, with revenue per subscriber up 21%, so the company is both adding customers and monetising them harder. The international business is now material. Adjusted EBITDA beat consensus by roughly 28%. And management reiterated 2030 targets of at least $6.5 billion of revenue and $1.3 billion of adjusted EBITDA — a commitment that can be checked.

What to check at the Q3 report

• Gross margin against 64%. This is the number. If branded GLP-1 mix has stabilised, margin flattens here; if it is still shifting, it goes lower.
• US revenue growth against 16%. Management said it expects the domestic business to keep accelerating through the second half. That is the cleanest test of whether the growth is bought or built.
• The US / rest-of-world split with a full quarter of Eucalyptus. Q3 is the first quarter carrying the acquisition end to end; the sequential step should be attributable.
• Adjusted EBITDA against the guided $75–95 million, and the size of the legal-contingency add-back inside it.
• Whether the adjusted EBITDA definition changes again. It was revised in Q1 2026 to add back restructuring; a further revision would make the series hard to trust.
• Q4’s implied $839–1,059 million of revenue. Once Q3 is known, that range narrows sharply, and the full-year guide either tightens or gets cut.
• Free cash flow, and the receivables and payables lines. A $329 million swing on each in six months is worth watching for a third data point.

The read

This was a strong revenue quarter attached to a materially different business than the one that produced 76% gross margins a year ago. Hims & Hers is converting itself from a high-margin telehealth platform into a larger, lower-margin one that dispenses branded pharmaceuticals internationally — and on the evidence of this quarter, that trade is going through at roughly 31 cents of gross profit per extra dollar of revenue.

Whether that is a good trade depends entirely on operating leverage: a 64%-margin business can be more profitable than a 76%-margin one if it is big enough and spends proportionally less to grow. Management’s guidance says that leverage arrives in the next two quarters. The reported numbers do not show it yet — adjusted EBITDA fell 27% while revenue rose 38%.

For anyone holding HIMS, the two numbers that decide this are gross margin and US revenue growth. The first tells you where the new business model settles. The second tells you how much of the growth the company is generating rather than acquiring. Total revenue, for the next few quarters, will tell you neither.

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Sources and method. Company figures — revenue of $753.214 million against $544.833 million, cost of revenue of $272.411 million against $128.637 million, gross profit of $480.803 million against $416.196 million and gross margin of 64% against 76%; marketing of $262.236 million, operations and support of $95.481 million, technology and development of $54.901 million, general and administrative of $165.377 million and total operating expenses of $577.995 million; the operating loss of $97.192 million against $26.723 million of operating income; net loss of $86.290 million and $(0.37) per share against net income of $42.505 million and $0.17; half-year revenue of $1,361.318 million, gross profit of $877.590 million and net loss of $178.405 million; United States revenue of $621.830 million (+16%) and rest-of-world revenue of $131.384 million (+1,641%); subscribers of 2.891 million (+19%) and monthly revenue per average subscriber of $92 (+21%, $84 for the half); adjusted EBITDA of $60.3 million against $82.2 million and its complete reconciliation including the $47.500 million of legal contingencies, $42.116 million of stock-based compensation, $29.477 million of depreciation and amortisation, $28.835 million of acquisition and transaction-related costs and $4.626 million of restructuring; operating cash outflow of $35.9 million, free cash flow of $(68.2) million and cash of $609.8 million; the half-year movements in receivables ($329.0 million) and accounts payable ($323.8 million); the statement that the adjusted EBITDA definition was revised in connection with the 2026 US weight-loss shift to include restructuring and other related charges, and that first-half restructuring was $38.1 million; the description of the US weight-loss strategic shift toward branded GLP-1 medications; the June 2026 close of the Eucalyptus acquisition; all Q3 and full-year 2026 guidance; and the 2030 targets of at least $6.5 billion of revenue and $1.3 billion of adjusted EBITDA — are Hims & Hers’ own disclosures in Exhibit 99.1 to the Form 8-K filed 2026-08-10 for the quarter ended 2026-06-30, reported after the close. These were read directly from the filing on SEC EDGAR, which is linked above. The timing of the definition change, and Q1 restructuring charges of $33.488 million, are from Exhibit 99.1 to the Form 8-K filed 2026-05-11 (accession 0001773751-26-000074), which first states the revision.

Not company figures, and attributed accordingly: consensus estimates — revenue of roughly $699 million (a 7.8% beat), adjusted EBITDA of roughly $47.3 million, GAAP EPS of $(0.05) against the $(0.37) reported, a Q3 revenue consensus roughly 12.4% below the guided midpoint and a full-year consensus near $2.9 billion, all per StockStory, with StreetInsider reporting the EPS miss as 32 cents. Whether the quarter beat or missed its own guidance is judged only against the guidance the company issued in its Form 8-K filed 2026-05-11 (accession 0001773751-26-000074; second-quarter revenue of $680–700 million and adjusted EBITDA of $35–55 million, both excluding Eucalyptus, and full-year revenue of $2.8–3.0 billion and adjusted EBITDA of $275–350 million) and against the year-ago quarter. This piece makes no claim about the share-price reaction.

Our arithmetic, labelled as such: the 111.8% growth in cost of revenue and 15.5% growth in gross profit; the $208.4 million revenue increase, $64.6 million gross-profit increase and the ~31% incremental gross margin that follows; the 3.6% half-year gross-profit growth; the observation that gross-profit growth (15.5%) and US revenue growth (15.7%) are close, offered as a sanity check rather than a causal claim; the implied second-half revenue of roughly $1,739–1,939 million and adjusted EBITDA of roughly $170–220 million, the 9.8–11.4% margin that implies against 7.7% in the first half, and the resulting Q4 implied ranges of roughly $839–1,059 million of revenue and $75–145 million of adjusted EBITDA; marketing at 34.8% of revenue; the 146% increase in general and administrative expense; and the note that Eucalyptus contributed roughly one month to the quarter; and the ~$55.7 million of Q2 adjusted EBITDA excluding the restructuring add-back. These are approximations built on disclosed figures, not reported numbers. The interpretation — that revenue growth is being purchased with gross margin, that the domestic business is the cleaner signal, and that the full-year guide embeds operating leverage not yet visible in reported results — is our analysis, not a company statement, and is not a forecast.

Related: Sezzle Q2 2026, another company that beat and raised, read through its reported margins; Tempus AI Q2 2026 for a different route through healthcare economics; and the two space companies that reported the same evening — Rocket Lab Q2 2026 and AST SpaceMobile Q2 2026.

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