Hims & Hers Shares Plunge as Costly Weight-Loss Push Squeezes Margins

Hims & Hers Health Inc. shares fell nearly 7% in premarket trading on Tuesday, August 11, 2026, following the release of its second-quarter financial results. The drop came as investors focused on shrinking profit margins and a wider-than-expected quarterly loss, which overshadowed strong subscriber growth and an upgraded full-year revenue forecast. For the second quarter, Hims & Hers reported revenue of $753 million, marking a 40% increase compared to the same period in the previous year and exceeding Wall Street consensus estimates. The telehealth platform added more than 300,000 net new subscribers during the quarter, bringing its total global subscriber base to nearly 3 million. Despite the top-line beat, the company posted a net loss of $86 million, translating to an adjusted loss of $0.37 per share. This significantly missed analyst expectations, which had anticipated a much smaller loss. Operating cash flow dropped to negative $36 million, while free cash flow stood at negative $68 million for the quarter. Management attributed the widening loss and margin compression to an aggressive corporate push into branded GLP-1 weight-loss medications, testosterone therapy, and international expansion, notably through the integration of overseas acquisitions like Eucalyptus. Gross margin declined to 64%, dropping roughly 6 percentage points sequentially on an adjusted basis, as lower-margin product lines and international markets scaled up faster than traditional offerings. Morningstar analyst Keonhee Kim noted that while the subscriber expansion remained robust, it was not enough to offset the persistent downward pressure on gross margins. In response to strong underlying demand, Hims & Hers raised its full-year 2026 revenue guidance to a range of $3.1 billion to $3.3 bil