Hims & Hers Posts Record Revenue Amid Mounting Legal Risk

Second-quarter revenue climbed 38 percent to $753 million on subscriber growth and the Eucalyptus deal, but a wider loss, thinner margins, and a new FTC lawsuit unsettled investors.

Key Takeaways

• Revenue rose 38 percent year over year to $753.2 million, beating consensus, while international sales grew more than sixteenfold after the Eucalyptus deal closed in June.
• A GAAP net loss of $86.3 million, driven by a $47.5 million legal charge and rising acquisition costs, overshadowed the revenue beat and pressured shares in after-hours trading.
• Management raised full-year revenue guidance to $3.1 billion to $3.3 billion even as an unresolved FTC lawsuit over data privacy and billing practices looms over the company.

A Beat That Didn’t Feel Like One

Hims & Hers Health reported second-quarter results on August 10 that read, at first glance, like vindication for a company that has spent the past year rebuilding itself around branded pharmaceuticals and international scale. Revenue reached $753.2 million, up 38 percent from $544.8 million a year earlier and well ahead of a consensus estimate near $700 million. Subscribers grew 19 percent to just under 2.9 million, with roughly 300,000 net additions in the quarter alone. On paper, this was the kind of print that silences skeptics.

The market did not read it that way. Diluted earnings per share came in at a loss of $0.37, a sharp miss against the five-cent loss Wall Street had modeled, and a stock that had closed the regular session at $31.77 fell more than five percent in after-hours trading. The gap between a strong top line and a weak bottom line is the defining feature of this quarter, and understanding it requires looking past the headline growth toward the structural forces now reshaping the company’s economics.

The Price of the Pivot

Gross margin fell to 64 percent from 76 percent a year earlier, a twelve-point compression that traces directly to a decision made in the first quarter. Hims & Hers chose to abandon its reliance on compounded GLP-1 medications, the lower-cost, higher-margin weight loss drugs that had powered much of its recent growth, in favor of branded products sold through a restored partnership with Novo Nordisk. That relationship had collapsed in 2025 amid a patent dispute and accusations of illegal compounding, then was rebuilt in March on terms giving Hims & Hers access to injectable and oral Wegovy and Ozempic at standard telehealth pricing.

The transition carries a real cost. The company booked $38.1 million in restructuring charges through the first half of the year, mostly inventory write-downs tied to winding down the compounded business. Yet the per-customer economics tell a more encouraging story than the margin line alone suggests. Monthly revenue per average subscriber rose 21 percent to $92, evidence that branded pricing and a richer international mix are generating more revenue per relationship even as the underlying cost structure has shifted beneath it. Whether that trade keeps favoring the company depends on how fast the newer, thinner-margin revenue scales against the fixed costs of the transition.

Building Beyond America

The clearest evidence of scale arrived from outside the United States. Rest-of-world revenue reached $131.4 million, up from just $7.5 million a year earlier, a jump driven almost entirely by the June 2 close of the Eucalyptus acquisition. The deal, valued at up to $1.15 billion with roughly $240 million paid in cash and the remainder deferred over eighteen months, gave Hims & Hers an established footprint in Australia, Canada, Germany, and Japan, and deepened its presence in the United Kingdom. Chief Financial Officer Yemi Okupe told analysts the acquisition alone contributed roughly $40 million to the quarter’s revenue, a figure that should grow as integration proceeds.

More telling than that immediate contribution is what it signals about the durability of the opportunity. The UK, Australian, and German businesses have each independently crossed $100 million in annualized revenue, a threshold suggesting genuine local demand rather than a temporary acquisition bump. Management used the results to reiterate its 2030 targets of at least $6.5 billion in revenue and $1.3 billion in Adjusted EBITDA, ambitions that increasingly rest on cross-border scale rather than domestic growth alone. A company that built its early identity around American cultural taboos, hair loss and sexual health, is now, deliberately and quickly, becoming a genuinely global health platform.

Scrutiny Follows Scale

That expansion unfolded alongside a domestic legal reckoning the earnings report could not obscure. On July 29, the Federal Trade Commission, joined by California and Utah, sued Hims & Hers in federal court, alleging the company shared consumers’ sensitive health information with Meta and Snap through tracking technology despite promising to protect that data, and that it charged some customers for medications before a clinical consultation had taken place. Hims & Hers rejected the claims as an attempt to generate headlines following a three-year investigation the company said had already produced substantial evidence in its favor. Shares fell as much as 15 percent the day the suit was filed, before recovering most of that decline over the following two weeks.

The earnings release carried its own reminder of legal exposure. Hims & Hers recorded a $47.5 million charge for legal contingencies in the quarter, part of a $62.5 million accrual that did not exist at the end of 2025. The company has not disclosed which specific matter the reserve addresses, and it arrives as the business continues to navigate separate securities litigation tied to last year’s dispute with Novo Nordisk. Total liabilities more than doubled to $3.30 billion over the trailing twelve months, a reminder that acquisitions, convertible debt, and legal reserves are accumulating on the balance sheet at nearly the same pace as revenue.

Conviction Priced In

None of this discouraged management from raising its outlook. Hims & Hers now expects full-year revenue of $3.1 billion to $3.3 billion, up from a prior midpoint closer to $2.9 billion, and Adjusted EBITDA of $275 million to $325 million. Third-quarter guidance calls for revenue of $880 million to $900 million, implying a margin profile that improves modestly from the pace just reported. Free cash flow, negative $68.2 million for the quarter, is expected to turn positive in the second half as working capital needs ease and the newer acquisitions begin contributing operating cash rather than consuming it.

The market’s muted reaction suggests investors are treating that guidance as a promise rather than a certainty. Analyst sentiment heading into the print had already settled into caution, with price targets clustered close to where the stock traded before results, a reflection of a company whose growth story and risk profile have become genuinely difficult to separate. Hims & Hers is, at once, one of the fastest-growing consumer health platforms in the world and one of the more legally exposed companies of its size. The second quarter did not resolve that tension. It sharpened it, and left the market to decide which half of the story carries more weight.