Key insights
- HIMS reported a mixed Q1'26 earnings report with revenue missing estimates and a net loss compared to net income YoY. Subscriber growth was positive, but monthly revenue per subscriber declined. FY guidance for revenue was above estimates, but adjusted EBITDA guidance was below. Q2 guidance also disappointed. The US revenue declined YoY, while Rest of World revenue increased significantly. Gross margin decreased YoY. Overall, the report suggests potential headwinds for HIMS, leading to a slightly negative impact on US equities.
Not a good quarter for HIMS.
Q1’26 EARNINGS HIGHLIGHTS Revenue: $608.1M (Est. $616.9M) ; +4% YoY Net Loss: $92.1M Subscribers: Nearly 2.6M; +9% YoY Monthly Revenue Per Avg. Subscriber: $80; -6% YoY FY Guide: Adj. EBITDA: $275M-$350M (Est. $322.8M) Revenue: $2.8B-$3.0B (Est. $2.72B) Adj. EBITDA Margin: 10%-12% Q2 Guide: Revenue: $680M-$700M Adj. EBITDA: $35M-$55M (Est. $70.1M) Adj. EBITDA Margin: 5%-8% Segment Performance: United States Revenue: $529.9M; -8% YoY Rest of World Revenue: $78.2M; +969% YoY Other Metrics: Adj. EBITDA: $44.3M FY 2026 Outlook Excludes Potential Contributions From Proposed Eucalyptus Acquisition Financials: Gross Margin: 65% vs. 73% YoY Net Loss: $92.1M vs. Net Income of $49.5M YoY Adj. EBITDA: $44.3M vs. $91.1M YoY Operating Cash Flow: $89.4M vs. $109.1M YoY FCF: $53.0M vs. $50.1M YoY Commentary: “2026 is a defining year for Hims & Hers. We’re not just growing, we’re pulling away from the field on our path to becoming the world’s largest consumer health platform.” “As we exit the first quarter, our domestic business is accelerating, we’re expanding into new categories and countries, and more people than ever are relying on us for access to personal, data-driven care.” “In the first quarter, we made a strategic pivot that expanded our assortment of branded GLP-1 products, and early demand signals show our consumer reach broadening meaningfully.” “We expect growth to accelerate from here, and have high conviction in our 2030 targets of at least $6.5 billion in revenue and $1.3 billion in Adjusted EBITDA.”