HIMS & HERS Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: $608 million, up 4% year-over-year.

Subscribers: Nearly 2.6 million, a 9% increase year-over-year.

Adjusted EBITDA: $44 million, representing a 7% margin.

International Revenue: Increased nearly tenfold to $78 million, driven by acquisitions.

Net Income: Loss of $92 million, impacted by restructuring costs related to a strategic pivot in the weight loss specialty.

Cash Flow: Generated $89 million from operations and $53 million in free cash flow.

Balance Sheet: $751 million in cash and short-term investments, with $225 million remaining on the share repurchase program.

2Strategic Updates and Business Highlights

Strategic Pivot: Shifted focus in the weight loss specialty to branded products, resulting in the discontinuation of compounding products. This pivot aims to expand the addressable market and improve customer engagement.

New Product Offerings: Successful introduction of Novo Nordisk's GLP-1 products, with over 125,000 shipments of Wegovy in six weeks.

Global Expansion: Anticipated acquisition of Eucalyptus to enhance presence in Australia, the U.K., Germany, Japan, and Canada.

Technology Investments: Continued investment in data and technology infrastructure to enhance customer experience and operational efficiency.

AI Integration: Development of AI tools to improve customer interactions and care quality, including the Labs AI health care agent.

3Forward Guidance and Outlook

Q2 2026 Revenue Guidance: Expected between $680 million and $700 million, a year-over-year increase of 25% to 28%.

Full-Year 2026 Revenue Outlook: Raised to $2.8 billion to $3 billion, representing a year-over-year increase of 19% to 28%.

Adjusted EBITDA for 2026: Expected between $275 million and $350 million, with a margin of 11% at the midpoint.

Long-Term Goals: Confidence in achieving 2030 targets of at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA.

4Bad News, Challenges, or Points of Concern

Margin Compression: Anticipated gross margin decline due to the strategic pivot and the transition to shorter shipping cadences for branded products.

Restructuring Costs: Approximately $33 million incurred due to the shift in the weight loss strategy, negatively impacting gross margins by about 5 points.

GAAP Net Income Loss: Significant loss attributed to nonrecurring costs, raising concerns about profitability timelines.

Volatility in Financial Metrics: Expected fluctuations in GAAP results and margins as the company navigates its strategic transition.

5Notable Q&A Insights

AI Development: Plans to create a multi-agent model to enhance customer care and outcomes, leveraging extensive data from patient interactions.

Peptide Strategy: Focus on ensuring safety and quality before entering the peptide market, with a commitment to clinical oversight.

Branded vs. Compounded Products: Transitioning to branded products has resulted in a significant increase in new customer acquisitions, indicating a successful strategic shift.

International Growth: While the current focus is on U.S. operations, there is optimism for growth in international markets, particularly following the Eucalyptus acquisition. Overall, Hims & Hers is navigating a strategic pivot that aims to enhance growth and customer engagement, despite facing challenges related to margin compression and restructuring costs. The company remains optimistic about its long-term goals and the potential for significant market expansion.