Key Takeaways
- The revenue reached $608 million with continued subscriber growth in quarter.
- The free cash flow stood at $53 million with strong liquidity position.
- The company reported a $92 million net loss due to restructuring costs.
- The full year revenue guidance increased to $2.8 billion to $3 billion.
- The AI investments include a team of nearly 40 specialists.
Hims & Hers Health reported its Q1 2026 results with revenue growth, rising subscriber numbers, and expanded investment in artificial intelligence and new healthcare categories. The company also raised its full-year outlook while continuing to develop the broader Hims And Hers healthcare strategy focused on digital healthcare expansion.
Revenue Growth And Margin Pressure From Strategic Shift
Hims and Hers reported revenue of $608 million for the quarter, reflecting a 4% increase compared to the previous year. The company’s subscriber base grew by 9% to approximately 2.6 million users, indicating continued demand for its digital healthcare services.
Adjusted EBITDA reached $44 million, representing a 7% margin. However, the company reported a net loss of $92 million. This loss was primarily driven by restructuring costs associated with its shift in weight loss offerings and other transaction-related expenses under the evolving Hims And Hers healthcare strategy.
The company incurred $33 million in restructuring costs, with $28 million directly impacting gross margin. Gross margin was reported at 65% on a GAAP basis and 70% when excluding these costs. Operating cash flow reached $89 million, while free cash flow stood at $53 million.
Hims and Hers ended the quarter with $751 million in cash and short-term investments. It also has $225 million remaining under its share repurchase program, supporting financial flexibility.
Weight Loss Expansion And AI Investment Drive Growth Plans
The company is focusing on branded GLP 1 products as part of its weight loss strategy. It fulfilled more than 125000 shipments of Wegovy products within six weeks of launch. The shift has increased demand but also introduced cost pressures due to changes in supply structure.
Management expects to add more than 100,000 new subscribers per month in its weight loss category. The Hims And Hers healthcare strategy continues to focus on improving engagement levels, with about 90% of users downloading the app and interacting with healthcare providers multiple times in the first month.
Hims and Hers also updated its outlook for 2026. The company now expects full year revenue between $2.8 billion and $3 billion, representing growth of 19% to 28%. It projects adjusted EBITDA between $275 million and $350 million.
The company is investing in artificial intelligence to improve its healthcare platform. It has built an AI team of nearly 40 specialists, including engineers and researchers. AI tools are being used to support providers with response drafting and to analyze patient data through systems such as Labs AI.
Future developments include an AI companion designed to assist users through treatment processes and prompt interactions with healthcare providers. These tools aim to improve service delivery and patient engagement across multiple healthcare categories.
Hims and Hers is also expanding into new specialties such as testosterone treatment, menopause care, and diagnostic services. As part of the Hims And Hers healthcare strategy, it plans to extend its presence internationally through the acquisition of Eucalyptus, which is expected to support operations across multiple global markets.
The company continues to target long-term growth, with projections of at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030.
