HIMS · Q1 2026 Earnings

Bearish

Hims & Hers

Reported May 11, 2026

30-second summary

30-second take: Q1 FY2026 revenue of $608M (+4% YoY) printed below the guide midpoint, but the real story is that US revenue declined 8.4% YoY to $530M — masked only by a $78M Rest-of-World contribution from the Zava/LiveWell footprint that didn't exist a year ago. Management raised the FY2026 revenue ceiling to $3.0B but cut the EBITDA midpoint by $25M and lowered the margin range 100bps to 10–12%. The Q2 guide of $680–700M implies +25–28% YoY acceleration — a reacceleration the US business has shown no evidence of delivering. ARPU also declined 6% YoY to $80 (from $85), so neither subscriber growth nor monetization is carrying the consolidated line; only ROW is.

Headline numbers

EPS

Q1 FY2026

$-0.40

Revenue

Q1 FY2026

$0.61B

+4.0% YoY

-1.5% vs est.

Gross margin

Q1 FY2026

65.0%

Free cash flow

Q1 FY2026

$0.05B

Operating margin

Q1 FY2026

-12.9%

Key financials

Q1 FY2026

Metric	Q1 FY2026	YoY	Q4 FY2025	QoQ
Revenue	$0.61B	+4.0%	$0.62B	-1.6%
EPS	$-0.40	—	$0.08	-600.0%
Gross margin	65.0%	—	72.0%	-700bps
Operating margin	-12.9%	—	1.5%	-1439bps
Free cash flow	$0.05B	—	$-0.00B	+2138.5%

Guidance

Full-year FY2026 Adjusted EBITDA and margin guidance materially lowered despite higher revenue ceiling; Q1 beat on profitability but weak 4% YoY growth tempers confidence in acceleration narrative.

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q1 FY2026	$600 million to $625 million	$608 million	-$17M below high end, but within midpoint range	Beat
Adjusted EBITDA	Q1 FY2026	$35 million to $55 million	$44.3 million	in-line with guidance midpoint	Beat
Adjusted EBITDA margin	Q1 FY2026	6% to 9%	7%	in-line with guidance midpoint	Beat

New guidance

Metric	Period	Guide	YoY
Revenue	Q2 FY2026	$680 million to $700 million	+26-30% YoY
Adjusted EBITDA	Q2 FY2026	$35 million to $55 million	—
Adjusted EBITDA margin	Q2 FY2026	5% to 8%	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY2026	$2.7 billion to $2.9 billion	$2.8 billion to $3.0 billion	+$0.1B midpoint ($2.8B vs $2.8B prior midpoint); range widened at high end	Lowered
Adjusted EBITDA	FY2026	$300 million to $375 million	$275 million to $350 million	-$25M low end, -$25M high end; midpoint -$25M ($337.5M → $312.5M)	Lowered
Adjusted EBITDA margin	FY2026	11% to 13%	10% to 12%	-100 bps low end, -100 bps high end; midpoint -100 bps	Lowered

Platform metrics

Q1 FY2026

Segment	Q1 FY2026
Subscribers	2.584 million
Monthly Revenue per Average Subscriber	$80

Profitability

Q1 FY2026

Segment	Q1 FY2026
Adjusted EBITDA	$44.3 million
Adjusted EBITDA margin	7%
Adjusted gross margin	70%
Operating cash flow	$89.4 million

Other KPIs

Q1 FY2026

Segment	Q1 FY2026	YoY
United States Revenue	$0.53B	-8.4%
Rest of the World Revenue	$0.078B	+969.0%

Management tone

The rhetoric escalated this quarter — "2026 is a defining year for Hims & Hers" and "we expect growth to accelerate from here" — even as the underlying US revenue line went negative. The 2030 targets ($6.5B revenue, $1.3B EBITDA) were reiterated without revision despite materially weaker near-term anchors. With FY2026 EBITDA midpoint cut to $312.5M, the 2030 EBITDA target implies a ~33% CAGR from a lower base. Reaffirming long-term targets while cutting near-term EBITDA is a tone tell — management is anchoring investor expectations to a destination they cannot yet bridge with intermediate-year math.

International and Eucalyptus received heavy framing weight this quarter, not less. Andrew described Eucalyptus closing in H2 2026 as extending leadership across Australia, UK, Germany, Japan, and Canada and emphasized network effects. Yemi disclosed the $240M closing payment with earn-out consideration extending through early 2029 and explicitly called international "the area where we expect to make the heaviest investment in the coming quarters." The strategic emphasis is clearly that international and category expansion are the load-bearing growth pillars; the US "acceleration" narrative is being asserted, not yet demonstrated.

On the Q2 acceleration narrative, Yemi disclosed in prepared remarks that the platform is "on track to add north of 100,000 new subscribers per month within our weight loss specialty" following the strategic pivot to branded GLP-1 products (Wegovy Pill and Pen via Novo Nordisk, ZepBound/Sandeo via Lilly Direct). More than 125,000 Wegovy shipments were fulfilled within six weeks of launch. This is the quantitative basis underlying management's confidence in the +25–28% Q2 YoY guide. If branded weight-loss additions are running at 100k+/month and US revenue still declined 8% in Q1, the Q2 implied reacceleration requires either a sharp April/May/June step-up or meaningful ROW contribution growth.

Q&A highlights

Corey Carpenter · JP Morgan

Asked about contribution dollar profile differences between branded and compounded weight loss customers, and requested isolation of revenue/EBITDA guide changes attributable to weight loss pivot versus rest of business.

Yemi stated branded and compounded products are roughly comparable on a dollar basis. Company prioritizes broad assortment to reach larger audience. Transition to branded products is driving unprecedented platform traffic, exceeding even peak 2025 seasonal campaigns. Guide changes reflect confidence in weight loss opportunity and broader platform demand.

Branded vs compounded contribution dollars roughly comparableNew branded customer acquisition exceeds New Year's and Super Bowl campaign peaksWeight loss transition driving significant traffic spike to platform

Maria Ripps · Tancore Genuity

Asked about compounded GLP-1 to branded product transition rates and retention, plus peptide readiness timeline and FDA classification expectations.

Andrew stated almost all new weight loss business now comes from branded products with strong transitions; company achieving 100k+ monthly new volume additions. On peptides: company unlikely to be first-to-market but will be 'best in market'; expects FDA clarity end of July; team actively preparing on supply chain, clinical protocols, and data transparency; significant demand on men's and women's side.

100,000+ monthly new branded weight loss subscribersAlmost all new weight loss business now brandedPeptide FDA decision expected end of JulyPeptide opportunity demand described as 'extremely large' on both men's and women's side

Mark Mahaney · Evercore

Asked for gross margin degradation quantification through end of year and confidence level in implied back-half EBITDA margin expansion.

Yemi indicated 'probably a couple points' of gross margin degradation expected. Explained back-half EBITDA margin expansion driven by: weight loss cadence shift from 2-month to 1-month (stacking cohorts), G&A leverage from front-half investment, continued marketing efficiency gains. High conviction in ability to compound EBITDA dollars.

Expected ~2 points of gross margin degradationWeight loss shifting to 1-month cadence vs prior 2-monthG&A leverage expected in back half from front-half investmentsMarketing efficiency gains continuing

Craig Hettenbach · Morgan Stanley

Asked about ramp and margin profile for new category launches (testosterone, menopause, labs) and longer-term gross margin range expectations.

Yemi explained new categories are lower-margin businesses being scaled to establish leadership position, following past playbook. Company prioritizes market share expansion over near-term margin expansion. Did not provide specific longer-term gross margin range but reiterated commitment to strong EBITDA dollars and cash flow generation while building leadership positions.

New categories (testosterone, menopause, labs) have lower margins than legacy specialtiesInvestment focus on establishing leadership positions, not near-term margin expansionPast playbook shows ability to capture economies of scale after market leadership achieved

Justine Patterson · KeyBank

Asked about AI impact on user experience, feedback loops, and outcomes data integration; also inquired about wearables strategy (build vs. partner approach).

Andrew described multi-agent AI model enabling personalization at each customer journey step; positioned AI as enabling '1000 opinions' from historical patient data rather than single second opinions. On wearables: evaluating both proprietary and partnership paths; plans universal integration with existing devices plus potential company-designed hardware similar to YearBio acquisition.

Building multi-agent AI across customer journeyYearBio acquisition for at-home blood testing model templateEvaluating both proprietary wearable devices and partner integrationsWearables intended to deepen retention and engagement

Answers to last quarter's watch list

Does Q1 FY2026 revenue print at the top of the $600–625M guide or below? — $608M, below the $612.5M midpoint. Even with the shipping-cadence/comp headwinds management cited, US revenue still declined 8.4% YoY. The Q4 sandbag pattern did not repeat.

Resolved negatively

Q1 EBITDA margin vs the 6–9% guide — 7%, mid-range. Met the guide but does not constitute a beat, and the Q2 guide of 5–8% confirms this is not the trough. The structural-margin-compression read is now confirmed for FY2026 (10–12% guide, -100bps).

Resolved negatively

HERS standalone disclosure — No segment breakout in Q1 disclosures.

Not resolved

Eucalyptus acquisition close and contribution — Addressed. Close expected H2 2026; $240M payment at closing with remaining guaranteed consideration in earn-out payments extending through early 2029; flexible cash/stock structure on post-closing obligations. Outlook explicitly excludes Eucalyptus contribution. Status: Resolved

Weight-loss subscriber growth trajectory beyond the +70% Q4 print — Management volunteered 100k+ monthly new branded weight-loss subscribers (prepared remarks), but did not provide a directly comparable Q1 YoY figure. The shift in disclosure framework (branded subs vs total weight-loss subs) makes direct comparison impossible — a tell in itself.

Not resolved

Marketing as % of revenue — Disclosed at 36%, improved 300bps YoY and QoQ. The cleanest favorable line in the quarter. Status: Resolved

What to watch into next quarter

Does Q2 revenue actually hit $680M+ to validate the +25% YoY low-end guide? With Q1 US revenue at $530M and ROW at $78M, Q2 needs ~$70M of sequential growth in roughly 90 days. A Q2 print below $680M means the acceleration narrative breaks and FY2026 revenue range is exposed.

US revenue YoY in Q2 — the cleanest signal of whether the shipping-cadence and tough-comp framing was timing or structural. A return to flat-to-positive US YoY would confirm management's framing; another decline would confirm the underlying business has decoupled from the growth narrative.

Q2 EBITDA margin vs the 5–8% guide — a print at 5% confirms the FY2026 10–12% midpoint requires a sharp H2 recovery that has no precedent in management's recent execution; a print at 8% reopens the conservative-guide pattern.

Peptide FDA classification (July) — the only concrete near-term regulatory catalyst Andrew flagged. Favorable classification re-rates the GLP-1-adjacent thesis; unfavorable narrows the addressable category.

Gross margin trajectory — Q1 GAAP gross margin was 65% (down 800bps YoY); adjusted was 70%. The Q2 EBITDA margin guide steps down to 5–8%, implying further gross margin pressure from one-month shipment cadence shifts in weight loss.

Branded weight-loss subscriber economics — Yemi's 100k+/month figure is volume, not revenue or contribution. Any quarter-specific branded weight-loss revenue figure or unit-economic detail would either validate or invalidate the pivot's financial mechanics.

Eucalyptus close timing within H2 2026 — the $240M closing payment is a near-term cash event, and post-close the FY2026 outlook would need restating to include contribution.

Sources

Hims & Hers Q1 FY2026 8-K earnings release, filed with SEC: https://www.sec.gov/Archives/edgar/data/1773751/000177375126000074/hims-20260331x8xkearningsr.htm
Q1 FY2026 earnings call prepared remarks (Dudum, El-Shanawi, Okupe) and retail-investor Q&A (Chi Yun on AI; Oman on peptides)

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