We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hims & Hers Stock Plunges Post Q1 Earnings Miss, Gross Margin Down
Read MoreHide Full Article
Key Takeaways
HIMS reported an adjusted loss and revenue that rose year over year but came in below the consensus mark.
Hims & Hers saw gross margin contract as operating expenses climbed, flipping operating profit to a loss.
HIMS added subscribers, but online revenue per subscriber fell; it also raised its full-year revenue outlook.
Hims & Hers Health, Inc. (HIMS - Free Report) reported quarterly adjusted loss per share of 18 cents in first-quarter 2026, against the year-ago period’s adjusted earnings per share (EPS) of 20 cents and the Zacks Consensus Estimate of EPS of 4 cents.
HIMS’ Revenues in Detail
Hims & Hers registered revenues of $608.1 million in the first quarter, up 3.8% year over year. However, the figure lagged the Zacks Consensus Estimate by 1.9%.
Solid revenues from the Rest of the World segment drove the top line.
Shares of this company lost nearly 15.2% in today’s pre-market trading.
Hims & Hers’ Geographical Results
In the first quarter of 2026, revenues in the United States declined 8.4% year over year to $529.9 million.
Rest of the World revenues grossed $78.2 million, up from the year-ago quarter’s $7.3 million.
During the reported quarter, subscribers were 2.6 million, up 9.2% year over year.
Monthly online revenue per average subscriber decreased 5.9% year over year to $80 in the first quarter. Per management, the decrease was primarily due to the shift to shorter shipping cadences for certain of HIMS’ offerings.
Hims & Hers Health, Inc. Price, Consensus and EPS Surprise
In the first quarter of 2026, Hims & Hers’ gross profit decreased 7.9% year over year to $396.8 million. The gross margin contracted 825 basis points (bps) to 65.2%.
Marketing expenses decreased 3.9% year over year to $222 million, while technology and development expenses jumped 56.9% year over year to $46.9 million. General and administrative expenses surged 125.6% year over year to $109.7 million, while operations and support expenses increased 53.1% year over year to $96.5 million. Operating expenses of $475.1 million increased 27.4% year over year.
Operating loss totaled $78.3 million against the year-ago quarter’s operating profit of $57.9 million.
Hims & Hers’ Financial Position
Hims & Hers exited first-quarter 2026 with cash and cash equivalents and short-term investments of $750.9 million compared with $577.5 million at the end of 2025.
Net cash provided by operating activities at the end of first-quarter 2026 was $89.4 million compared with $109.1 million a year ago.
HIMS’ Outlook
Hims & Hers has provided its revenue outlook for the second quarter and raised the same for 2026.
The company projects revenues for the second quarter of 2026 in the range of $680 million to $700 million, reflecting an uptick of 25%-28% year over year. The Zacks Consensus Estimate is pegged at $647.2 million.
For the full year, HIMS now projects revenues in the range of $2.8 billion to $3 billion (representing growth of 19%-28% from 2025 levels), up from the prior outlook of $2.7 billion to $2.9 billion (representing growth of 15%-24% from 2025 levels). The Zacks Consensus Estimate is pegged at $2.82 billion.
Our Take on Hims & Hers
Hims & Hers recorded robust improvement in the top line and Rest of the World revenues in first-quarter 2026. The increase in subscribers during the quarter was encouraging.
Per management, HIMS made a strategic pivot in the first quarter that expanded its assortment of branded GLP-1 products. Early demand signals show its consumer reach broadening meaningfully. In March, the company announced Hims & Hers Benefits (a program providing discounts on advanced diagnostics and sleep technology).
In February, HIMS entered into a definitive agreement to acquire Eucalyptus, which is expected to accelerate the company’s ability to bring access to high-quality, personalized care to more people across the world. These raise our optimism about the stock.
However, Hims & Hers’ lower-than-expected results and dismal bottom-line results in the quarter were disappointing. Lower revenues from the United States were also reported, while monthly online revenue per average subscriber also declined. The contraction of the gross margin during the quarter does not bode well for the stock.
HIMS’ Zacks Rank and Key Picks
Hims & Hers currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are BrightSpring Health Services, Inc. (BTSG - Free Report) , DaVita Inc. (DVA - Free Report) and Labcorp Holdings Inc. (LH - Free Report) .
BrightSpring, sporting a Zacks Rank of 1 (Strong Buy), reported first-quarter 2026 adjusted EPS of 39 cents, beating the Zacks Consensus Estimate by 35.4%. Revenues of $3.61 billion outpaced the consensus mark by 8.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
BrightSpring has a long-term estimated growth rate of 44.5%. BTSG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 14.6%.
DaVita reported first-quarter 2026 adjusted EPS of $2.87, beating the Zacks Consensus Estimate by 19.1%. Revenues of $3.42 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently flaunts a Zacks Rank #1.
DaVita has a long-term estimated growth rate of 20.2%. DVA’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.4%.
Labcorp reported first-quarter 2026 adjusted EPS of $4.25, beating the Zacks Consensus Estimate by 3.9%. Revenues of $3.54 billion surpassed the Zacks Consensus Estimate by 1%. It currently carries a Zacks Rank #2 (Buy).
Labcorp has a long-term estimated growth rate of 7.9%. LH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.3%.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Hims & Hers Stock Plunges Post Q1 Earnings Miss, Gross Margin Down
Key Takeaways
Hims & Hers Health, Inc. (HIMS - Free Report) reported quarterly adjusted loss per share of 18 cents in first-quarter 2026, against the year-ago period’s adjusted earnings per share (EPS) of 20 cents and the Zacks Consensus Estimate of EPS of 4 cents.
HIMS’ Revenues in Detail
Hims & Hers registered revenues of $608.1 million in the first quarter, up 3.8% year over year. However, the figure lagged the Zacks Consensus Estimate by 1.9%.
Solid revenues from the Rest of the World segment drove the top line.
Shares of this company lost nearly 15.2% in today’s pre-market trading.
Hims & Hers’ Geographical Results
In the first quarter of 2026, revenues in the United States declined 8.4% year over year to $529.9 million.
Rest of the World revenues grossed $78.2 million, up from the year-ago quarter’s $7.3 million.
During the reported quarter, subscribers were 2.6 million, up 9.2% year over year.
Monthly online revenue per average subscriber decreased 5.9% year over year to $80 in the first quarter. Per management, the decrease was primarily due to the shift to shorter shipping cadences for certain of HIMS’ offerings.
Hims & Hers Health, Inc. Price, Consensus and EPS Surprise
Hims & Hers Health, Inc. price-consensus-eps-surprise-chart | Hims & Hers Health, Inc. Quote
HIMS’ Margin Analysis
In the first quarter of 2026, Hims & Hers’ gross profit decreased 7.9% year over year to $396.8 million. The gross margin contracted 825 basis points (bps) to 65.2%.
Marketing expenses decreased 3.9% year over year to $222 million, while technology and development expenses jumped 56.9% year over year to $46.9 million. General and administrative expenses surged 125.6% year over year to $109.7 million, while operations and support expenses increased 53.1% year over year to $96.5 million. Operating expenses of $475.1 million increased 27.4% year over year.
Operating loss totaled $78.3 million against the year-ago quarter’s operating profit of $57.9 million.
Hims & Hers’ Financial Position
Hims & Hers exited first-quarter 2026 with cash and cash equivalents and short-term investments of $750.9 million compared with $577.5 million at the end of 2025.
Net cash provided by operating activities at the end of first-quarter 2026 was $89.4 million compared with $109.1 million a year ago.
HIMS’ Outlook
Hims & Hers has provided its revenue outlook for the second quarter and raised the same for 2026.
The company projects revenues for the second quarter of 2026 in the range of $680 million to $700 million, reflecting an uptick of 25%-28% year over year. The Zacks Consensus Estimate is pegged at $647.2 million.
For the full year, HIMS now projects revenues in the range of $2.8 billion to $3 billion (representing growth of 19%-28% from 2025 levels), up from the prior outlook of $2.7 billion to $2.9 billion (representing growth of 15%-24% from 2025 levels). The Zacks Consensus Estimate is pegged at $2.82 billion.
Our Take on Hims & Hers
Hims & Hers recorded robust improvement in the top line and Rest of the World revenues in first-quarter 2026. The increase in subscribers during the quarter was encouraging.
Per management, HIMS made a strategic pivot in the first quarter that expanded its assortment of branded GLP-1 products. Early demand signals show its consumer reach broadening meaningfully. In March, the company announced Hims & Hers Benefits (a program providing discounts on advanced diagnostics and sleep technology).
In February, HIMS entered into a definitive agreement to acquire Eucalyptus, which is expected to accelerate the company’s ability to bring access to high-quality, personalized care to more people across the world. These raise our optimism about the stock.
However, Hims & Hers’ lower-than-expected results and dismal bottom-line results in the quarter were disappointing. Lower revenues from the United States were also reported, while monthly online revenue per average subscriber also declined. The contraction of the gross margin during the quarter does not bode well for the stock.
HIMS’ Zacks Rank and Key Picks
Hims & Hers currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are BrightSpring Health Services, Inc. (BTSG - Free Report) , DaVita Inc. (DVA - Free Report) and Labcorp Holdings Inc. (LH - Free Report) .
BrightSpring, sporting a Zacks Rank of 1 (Strong Buy), reported first-quarter 2026 adjusted EPS of 39 cents, beating the Zacks Consensus Estimate by 35.4%. Revenues of $3.61 billion outpaced the consensus mark by 8.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
BrightSpring has a long-term estimated growth rate of 44.5%. BTSG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 14.6%.
DaVita reported first-quarter 2026 adjusted EPS of $2.87, beating the Zacks Consensus Estimate by 19.1%. Revenues of $3.42 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently flaunts a Zacks Rank #1.
DaVita has a long-term estimated growth rate of 20.2%. DVA’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.4%.
Labcorp reported first-quarter 2026 adjusted EPS of $4.25, beating the Zacks Consensus Estimate by 3.9%. Revenues of $3.54 billion surpassed the Zacks Consensus Estimate by 1%. It currently carries a Zacks Rank #2 (Buy).
Labcorp has a long-term estimated growth rate of 7.9%. LH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.3%.