Hims & Hers Health’s first quarter was marked by a significant strategic pivot in its weight loss business, which management described as a move to prioritize branded medications over compounded products. CEO Andrew Dudum highlighted that this shift resulted in near-term financial pressures, including restructuring charges and margin compression, as the company adapted to evolving consumer demand and regulatory developments. The company also experienced increased investment in technology and operations, while its international business, led by acquired brands like ZAVA and Livewell, posted strong growth.
Is now the time to buy HIMS? Find out in our full research report (it’s free for active Edge members).
Hims & Hers Health (HIMS) Q1 CY2026 Highlights:
- Revenue: $608.1 million vs analyst estimates of $616.8 million (3.8% year-on-year growth, 1.4% miss)
- Adjusted EPS: -$0.19 vs analyst estimates of $0.13 (significant miss)
- Adjusted EBITDA: $44.28 million vs analyst estimates of $45.44 million (7.3% margin, 2.6% miss)
- The company lifted its revenue guidance for the full year to $2.9 billion at the midpoint from $2.8 billion, a 3.6% increase
- EBITDA guidance for the full year is $312.5 million at the midpoint, below analyst estimates of $327 million
- Operating Margin: -12.9%, down from 9.9% in the same quarter last year
- Customers: 2.58 million, up from 2.51 million in the previous quarter
- Market Capitalization: $5.80 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Hims & Hers Health’s Q1 Earnings Call
- Cory Carpenter (JPMorgan) asked about the economics of branded versus compounded weight loss products. CFO Yemi Okupe explained that while dollar contribution is similar, branded products expand the customer base and support cross-selling into other specialties.
- Maria Ripps (Canaccord Genuity) inquired about the transition of GLP-1 subscribers to branded therapies and readiness for peptide market entry. CEO Andrew Dudum stated most new business is branded and emphasized a focus on being the best—not first—to market with peptides, citing ongoing clinical and supply chain preparations.
- Mark Mahaney (Evercore) questioned the extent of gross margin volatility and EBITDA improvement in the second half. Okupe acknowledged margin degradation due to the pivot but expressed confidence in leveraging scale and marketing efficiency to drive EBITDA growth later in the year.
- Craig Hettenbach (Morgan Stanley) asked about the rationale behind raising revenue guidance but lowering EBITDA guidance, as well as the margin ramp for new categories. Okupe highlighted investment in leadership positioning and flexible EBITDA targets to capture market opportunities, with long-term margin expansion expected as categories mature.
- Justin Patterson (KeyBanc) sought clarity on the use of AI to enhance the user experience and data feedback. Dudum described a multi-agent AI model enabling more personalized care, continuous engagement, and deeper integration of wearables for richer health insights.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the adoption trajectory of branded weight loss products and the impact on customer engagement, (2) gross margin trends as the company continues to invest in technology and expand into new specialties, and (3) the integration progress and financial impact of the Eucalyptus acquisition. The pace of AI-driven product innovation and success in cross-selling additional specialties will also be important markers for execution.
Hims & Hers Health currently trades at $24.84, down from $29.14 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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