How did Hims & Hers (NYSE:HIMS) perform in Q1 2026?

Hims & Hers posted first-quarter revenue of $608.1 million, a 4% increase compared to the prior year. However, the company reported a net loss of $92.1 million, a significant reversal from a net income of $49.5 million in Q1 2025. The gross margin decreased from 73% to 65%, mainly due to a shift away from compounded semaglutide.

What caused the decline in Hims & Hers' profitability?

The decline in profitability was driven by the company’s pivot towards branded GLP-1 medications, such as Wegovy and Zepbound, following the resolution of drug shortages. These partnerships with Novo Nordisk and Eli Lilly have higher acquisition costs and lower margins compared to the compounded products that previously fueled rapid growth.

How did Hims & Hers manage cash generation despite the loss?

Despite the net loss, Hims & Hers generated $53 million in free cash flow, slightly exceeding the $50.1 million generated in the same period last year. The company's robust subscriber base and new product offerings, such as the "Labs AI" agent, contributed to its continued cash generation.

How did the subscriber base perform in Q1 2026?

The subscriber base grew by 9% year-over-year, reaching a total of 2.6 million subscribers. The growth was aided by the launch of the "Labs AI" agent, which helps users interpret biomarker data and personalize wellness plans, enhancing engagement.

What is the new business focus for Hims & Hers?

Hims & Hers is shifting its business model towards branded GLP-1 medications. The partnerships with Novo Nordisk and Eli Lilly are part of this transition, aiming for long-term regulatory stability but with higher acquisition costs and lower margins than the compounded offerings used previously.

Hims & Hers revenue rises 4% to $608M, gross margins compress to 65%

Written by Brie CarterPublished May. 11 2026

Hims & Hers (NYSE:HIMS) posted first-quarter revenue of $608.1 million, a 4% increase compared to $586 million in the prior-year period.

However, the company’s gross margin fell to 65% from 73% a year ago, a compression driven by a strategic move away from compounded semaglutide.

The company reported a net loss of $92.1 million, or approximately $0.41 per share, a sharp reversal from the $49.5 million in net income recorded in the first quarter of 2025.

Adjusted EBITDA also declined, falling to $44.3 million from $91.1 million year-over-year.

The quarter marks a "defining year" for the platform, according to CEO Andrew Dudum, as the company pivots toward a business model centered on branded GLP-1 medications.

Following the resolution of drug shortages for Wegovy and Zepbound, Hims & Hers recently launched collaborations with Novo Nordisk and Eli Lilly to provide FDA-approved options directly to its 2.6 million subscribers.

While these partnerships ensure long-term regulatory stability, they carry higher acquisition costs and lower margins than the compounded offerings that fueled the company's triple-digit growth in 2025.

Despite the GAAP net loss, the company’s cash generation remained resilient.

Free cash flow for the quarter was $53 million, slightly exceeding the $50.1 million generated in the same period last year.

Hims & Hers ended the quarter with a robust subscriber base that grew 9% year-over-year, bolstered by the debut of its "Labs AI" agent, a tool designed to help users interpret biomarker data and personalize their wellness plans.

Looking ahead, management expressed confidence in the transition, raising its full-year 2026 revenue guidance to a range of $2.8 billion to $3.0 billion. The company also updated its adjusted EBITDA outlook to between $275 million and $350 million.