Q2 revenue rose 38% and monthly revenue per average subscriber increased 21%, even as gross margin declined and the company reported a net loss.

Hims & Hers is heading into the second half of 2026 with more subscribers, more revenue per average subscriber and a higher revenue outlook.

The digital health company reported Q2 revenue of $753.2 million, up 38% year over year. Subscribers increased 19% to 2.891 million, while monthly revenue per average subscriber reached $92, up 21% from $76 a year earlier.

Hims also raised its full-year revenue forecast to $3.1 billion to $3.3 billion, up from the $2.8 billion to $3.0 billion range it provided after the first quarter.

There is an important caveat. Hims’ previous outlook did not include any contribution from Eucalyptus, which the company acquired in June. The new forecast includes a larger international business, so the two guidance ranges are not directly comparable.

Growth also came with higher costs. Gross margin fell to 64% from 76% a year earlier. Put simply, Hims kept less of each revenue dollar after the direct costs of delivering its products and services.

Adjusted EBITDA, a commonly watched measure of operating profitability, declined to $60.3 million from $82.2 million. Hims also reported an $86.3 million net loss, compared with net income of $42.5 million in the second quarter of 2025.

More subscribers and more revenue per subscriber

Hims ended Q2 with 2.891 million subscribers, up from 2.584 million at the end of Q1.

Monthly revenue per average subscriber also moved higher, reaching $92 for the quarter, compared with $80 in Q1 and $76 a year earlier.

Hims defines a subscriber as a customer with at least one subscription that bills automatically on a recurring schedule. The company says most of its online sales are subscription-based, although total revenue also includes one-time purchases.

That matters when reading the $92 metric. Hims calculates monthly revenue per average subscriber using total revenue divided by average subscribers and then by the number of months in the period. It is broader than a pure recurring subscription ARPU measure.

Hims did not provide enough detail to isolate how much of the increase came from product mix, pricing, one-time purchases or other factors.

For Q3, Hims expects revenue between $880 million and $900 million.

Its full-year adjusted EBITDA outlook is now $275 million to $325 million, compared with the previous range of $275 million to $350 million. Hims raised its revenue expectations while lowering the top end of its adjusted EBITDA guidance.

International growth is changing the picture

Hims generated $621.8 million in U.S. revenue during Q2, up 16% year over year.

Revenue outside the United States reached $131.4 million, compared with $7.5 million a year earlier.

Those international numbers now include Eucalyptus, which Hims acquired on June 2. The acquisition expanded the company further into markets including Australia, the United Kingdom, Germany, Japan and Canada.

Hims said Eucalyptus contributed to stronger international growth during the quarter. According to the company’s quarterly filing, Eucalyptus accounted for about 5% of consolidated Q2 revenue from the acquisition date through June 30.

Future headline growth will increasingly reflect both the existing Hims business and its international expansion. That makes the U.S. business particularly useful to watch when comparing performance over time.

Growth comes with margin pressure

The quarter shows why subscriber and revenue growth need to be read alongside the cost of delivering that growth.

Gross margin declined to 64% from 76% a year earlier.

Hims said several factors contributed. Its weight-loss offerings included shorter shipping schedules and higher fulfillment costs. International growth, new offerings, restructuring tied to changes in its U.S. weight-loss business and recent acquisitions also affected margins.

Operating expenses rose to about $578 million from $389 million a year earlier. Marketing expense increased to $262.2 million, while other operating costs also moved higher.

Even with that pressure, Hims raised its revenue expectations for the year and said it expects its domestic business to continue accelerating during the second half of 2026.

FTC case remains part of the picture

The earnings report comes less than two weeks after the Federal Trade Commission, joined by Utah and Los Angeles County on behalf of California, sued Hims & Hers over alleged privacy, billing, subscription consent and cancellation practices.

Hims disputes the allegations and says it plans to vigorously defend itself.

The matter also appears in the company’s financial statements. As of June 30, Hims said it had recorded an approximately $60 million legal contingency accrual related to the FTC matter.

Separately, the company reported $47.5 million in non-recurring legal contingency expense during Q2. Its filing does not say that the full $47.5 million was tied solely to the FTC case.

Subscription Insider covered the FTC action on July 30. The case remains pending.

Insider Take

Strong subscription growth does not automatically mean stronger underlying economics. Hims added subscribers and increased revenue per average subscriber, but gross margin fell sharply. For subscription operators, the quarter is a useful reminder to watch growth alongside what it costs to support and deliver that growth.

Hims is also becoming a harder company to use as a simple subscription benchmark. The Eucalyptus acquisition and international expansion are now contributing to the headline numbers. As the business gets larger and more complex, domestic subscriber growth and margins will be important signals for understanding how the underlying business is performing.

Sources

• Hims & Hers Health, Inc., Second Quarter 2026 Financial Results, August 10, 2026. 

• Hims & Hers Health, Inc., First Quarter 2026 Financial Results, May 11, 2026. 

• Hims & Hers Health, Inc., Form 10-Q for the quarter ended June 30, 2026. 

• Hims & Hers Health, Inc., Eucalyptus Acquisition Completion, June 2, 2026. 

• Federal Trade Commission, Hims & Hers enforcement action, July 29, 2026. 

• Hims & Hers response to FTC lawsuit, July 29, 2026. P

• Subscription Insider, “FTC Sues Hims & Hers Over Subscription Consent and Cancellation,." July 30, 2026. \