Hims & Hers Q2 Earnings Spark Analyst Scrutiny Over Subscriber Gains vs Margin Pressure

Hims & Hers Health's second-quarter print set a revenue record and a margin problem at the same time, and analysts have spent the days since arguing over which one matters more. Revenue rose about 38% year over year to $753.2 million and subscribers grew 19% to nearly 2.9 million, with roughly 300,000 net adds in the quarter. The company raised full-year 2026 revenue guidance to a range of $3.1 billion to $3.3 billion.

The margin line is what broke the reaction. Gross margin fell to 64% from 76% a year earlier, down roughly six points sequentially, which management attributed to mix shift toward branded weight-loss products and international expansion, and which it expects to persist. Adjusted EPS came in at negative $0.37 against a consensus near negative $0.05, net loss was $86.3 million versus net income of $42.5 million a year earlier, and free cash flow was negative $68 million on branded weight-loss inventory and working capital. HIMS fell about 6% in after-hours trading and has since snapped a two-day advance.

The analyst questions published this week converge on one issue: whether growth bought through lower-margin branded product is a durable trade. Adjusted EBITDA of $60 million and a full-year EBITDA range of $275 million to $325 million imply management still expects the model to scale, but the path now depends on volume offsetting a structurally lower take rate rather than on margin recovery.

Two markers would settle the debate. Sequential gross margin stabilizing near the mid-60s would suggest the mix shift has found its floor; another leg down alongside continued negative free cash flow would suggest the weight-loss expansion is consuming more capital than the subscriber economics return. Guidance commentary on international contribution is the earliest place either shows up.

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