Logo of jester cap with thought bubble.

Image source: The Motley Fool.

DATE

Monday, May 11, 2026 at 5 p.m. ET

CALL PARTICIPANTS

  • Chief Executive Officer — Andrew Dudum
  • Chief Financial Officer — Yemi Okupe
  • Chief Technology Officer — [Name not provided in transcript]
  • Moderator — Bill Newby

TAKEAWAYS

  • Revenue -- $608 million, a 4% increase year over year.
  • Subscriber Count -- Nearly 2.6 million, up 9% year over year.
  • Adjusted EBITDA -- $44 million, representing a 7% margin.
  • International Revenue -- $78 million, almost ten times higher year over year, attributed to the ZAVA and LIVWELL acquisitions.
  • GAAP Net Income -- Reported as a $92 million loss, pressured by $33 million in restructuring and other non-recurring charges.
  • Gross Margin -- 65% on a GAAP basis; adjusted to 70% excluding $28 million in one-time restructuring costs.
  • Cash Flow from Operations -- $89 million generated in the quarter.
  • Free Cash Flow -- $53 million during the quarter.
  • Cash and Short-term Investments -- $751 million at quarter-end.
  • Wegovy Shipment Volumes -- Over 125,000 Wegovy product shipments fulfilled within six weeks of launch.
  • New Weight Loss Subscribers -- On pace to add more than 100,000 per month after the branded product launch.
  • Customer Engagement -- Nearly 90% of new weight loss subscribers downloaded the app, and the average subscriber interacted with a provider three times in their first month.
  • Testosterone Specialty -- 95% of users achieved an increase in testosterone levels within two months of starting treatment.
  • Share Repurchase Authorization -- $225 million remains available for repurchases.
  • Marketing Spend Efficiency -- Reduced to 36% of revenue, a three-point improvement year over year and sequentially.
  • 2026 Revenue Outlook -- Raised to $2.8 billion–$3.0 billion, representing a 19%–28% increase year over year.
  • 2026 Adjusted EBITDA Guidance -- Projected at $275 million–$350 million, or 11% margin at midpoint.
  • Q2 2026 Revenue Guidance -- Anticipated at $680 million–$700 million, suggesting 25%–28% growth year over year.
  • Q2 2026 Adjusted EBITDA Guidance -- Estimated at $35 million–$55 million, or 7% margin at midpoint.
  • Operational Pivot -- March 2026 shift discontinued advertising of compound weight loss products, focusing on branded GLP-1 portfolio and prompting a $33 million write-down of compounding supply chain assets.
  • Eucalyptus Acquisition -- Expected to close in the second half of 2026, with an upfront payment of $240 million and further payments through early 2029, extending the platform’s presence in Australia, the UK, Germany, Japan, and Canada.
  • GLP-1 Customer Transition -- "Almost all" new business now on branded products, with most former compounded product subscribers transitioned following the Novo Nordisk partnership.
  • Technology and AI Investments -- Nearly 40 AI team members, with tools such as Labs AI, an AI Copilot for provider-side responses, and imminent launch of a weight loss AI companion.
  • Platform Infrastructure -- Modular and no-code systems enable rapid specialty and regional expansion and support flexible pricing, membership, and treatment plans.
  • Domestic Peptide Facility -- Vertically integrated U.S. supply chain established, supporting preparedness for peptide therapies pending FDA guidance.
  • International Growth -- ZAVA and LIVWELL contributed to international revenue scaling nearly 10x year over year, with substantial investments planned for additional markets.
  • YourBio Acquisition -- Completed in Q1 to enable at-home pain-free blood collection as part of a strategy to boost engagement and preventative care.
  • Restructuring Costs -- $28 million affected gross margin; $5 million impacted operations and support expenses in the quarter.
  • Gross Margin Outlook -- Anticipating a further "couple of points" in compression in upcoming quarters as weight loss, labs, and international scale, with recovery expected as volumes leverage economies of scale.
  • 2027 Profitability Path -- Net income profitability targeted for 2027, contingent on growth and efficiency improvements.

Need a quote from a Motley Fool analyst? Email [email protected]

RISKS

  • Yemi Okupe stated, "To reach our longer-term aspirations, we are undergoing what is likely to be a transition period that may create volatility in GAAP results and ratios, as reflected in our first quarter results."
  • Gross margins are projected to compress further in the near term as the company scales weight loss and international segments, which have lower margin profiles than established specialties.
  • GAAP net income showed a $92 million loss in Q1, attributed to non-recurring restructuring charges and expenses tied to the weight loss business pivot, legal costs, and M&A activity.
  • Management indicated margin volatility through 2026 as investments in new categories and international expansion ramp, with a return to net income profitability not anticipated until 2027.

SUMMARY

Management presented a comprehensive operational pivot in its weight loss specialty, shifting focus from compounded products to branded GLP-1s and expanding addressable markets, which resulted in significant subscriber engagement and higher platform interactions. The acquisition of YourBio and deeper AI integration have enhanced the data-driven care model, while recent deals—such as the anticipated Eucalyptus acquisition—signal intensified global expansion. Technology and operational investments are prioritized to enable rapid entry into new therapeutic categories, including preparations for regulated peptide launches and broader use of wearable and at-home diagnostic solutions. Guidance was raised for both revenue and EBITDA, supported by accelerating volume trends in core business lines, but this scale-up is expected to generate short-term margin headwinds and heightened GAAP earnings volatility through ongoing restructuring and shifting operational focus.

  • Subscriber acquisition from the weight loss transition is significantly boosting cross-sell potential for adjacent specialties, adding data that may increase future customer value and retention, but management described this as "early signs" subject to continued monitoring.
  • Management highlighted that investments in technology—especially AI and platform modularity—could begin yielding operating efficiency and cost leverage as soon as 2027, with gross margin improvement following initial compression.
  • The company expects marketing spend as a percentage of revenue to continue declining as customer retention, organic cross-sell, and lower-cost acquisitions improve with scale.
  • Verticalized U.S. supply chains for peptides and the control of proprietary data infrastructure are emphasized as sustainable competitive differentiators, particularly as regulatory clarity emerges for new therapeutic categories.
  • International segment growth, though still a smaller base, provides a blueprint for rapid specialty replication across multiple geographies following initial U.S. rollout and operational refinement.

INDUSTRY GLOSSARY

  • GLP-1: Glucagon-like peptide-1 receptor agonists; a class of drugs used primarily for weight management and diabetes, including branded products like Wegovy.
  • Compounding Supply Chain: Pharmaceutical distribution specifically tailored to mix or alter ingredients to create customized formulations for individual patients.
  • Verticalization: Integration of supply chain stages within the company, enabling control from manufacturing to end-customer delivery.
  • 503A Facility: Reference to U.S. pharmacy compounding regulations permitting preparation of customized medications for individual patients under direct medical supervision (Section 503A of the Federal Food, Drug, and Cosmetic Act).
  • Labs AI: Internal Hims & Hers Health (HIMS +3.01%) artificial intelligence agent designed to explain biomarker results, flag clinical priorities, and recommend provider escalation in laboratory diagnostics.

Full Conference Call Transcript

Andrew Dudum, our cofounder and chief executive officer, Yemi Okupe, our chief financial officer, and our chief technology officer. Before I hand it over to Andrew, I need to remind you of legal safe harbor and cautionary declarations. Certain statements and projections of future results made in this presentation constitute forward-looking statements that are based on, among other things, our current market, competitors, and regulatory environment and are subject to risks and uncertainties that could cause actual results to vary materially. We take no obligation to update publicly any forward-looking statement after this call whether as a result of new information, future events, changes in assumptions, or otherwise.

The risks, uncertainties, and other factors that could cause actual results to differ from our forward-looking statements are described in our earnings release and SEC filings. Please see our recent earnings release and most recently filed 10-Ks and 10-Q reports for a discussion of these risk factors as they relate to forward-looking statements. In today's presentation, we also have certain non-GAAP financial measures. We refer you to the reconciliation tables to the most directly comparable GAAP financial measures contained in today's press release. You can find this information as well as a link to today's webcast at investors.hens.com. After the call, this webcast will be archived on the website for 12 months.

And with that, I will turn the call over to Andrew.

Andrew Dudum: Thanks, Bill. Good afternoon, everyone, and thank you for joining us. It has been a strong, meaningful start to the year at Hims & Hers Health, Inc. We have made significant progress on the strategic objectives we believe will define our platform for the next decade. Importantly, 2026 is proving to be a year of accelerating growth, which reinforces our confidence in our ambitious 2030 targets. Before Yemi takes us through our results, I want to highlight a few key areas that underscore our progress. First, our U.S. business is positioned to accelerate as we introduce new specialties and shift our weight loss strategy toward a globally unified approach.

Second, our global scale is quickly becoming a competitive advantage, not only because it expands our TAM, but because it expands our value to industry partners and strengthens the network effects of our platform. Third, we are deepening our customer relationships while filling real, painful gaps in the traditional care system with a more proactive care offering. This means we are creating the opportunity for longer-term relationships with our customers. Fourth, continued investment in our data and technology infrastructure is building an increasingly agile platform that gets smarter with every new customer. With tens of millions of customer touch points annually, and a closed-loop provider network, we are amassing a powerful dataset that is becoming harder to replicate.

These investments are enabling faster, more efficient geographic and product expansion, more valuable customer interactions, and deeper platform engagement. With that foundation, Hims & Hers Health, Inc. is on its way to becoming an everyday health partner not just for the nearly 2.6 million people we currently serve, but for millions more around the world. Let us start with the building momentum we are seeing in the U.S. The breadth of care we can provide is becoming a real strategic advantage, giving customers more ways to start with Hims & Hers Health, Inc. and more reasons to stay with us over time. We see momentum in newer specialties like testosterone, menopause, and labs.

And our expanding selection of branded GLP-1 solutions is driving accelerating momentum in our weight loss business. The number of people we can help has never been larger, or more diverse, and we are working to ensure they have access to the broadest array of treatment options possible. In weight alone, more than 100 million adults in the U.S. are struggling. Demand for effective, accessible treatments is increasing, and the market is evolving rapidly to meet this need with more form factors and lower prices.

In March, we announced a strategic shift in our weight loss business that recognizes this evolution and focuses on providing customers on our platform with access to the broadest possible assortment of innovative medications alongside a comprehensive experience that includes access to the data-driven clinical care and lifestyle support our customers have come to expect. Platforms like ours are the place pharma, biotech, and diagnostic companies are increasingly relying on to reach more people with innovative treatments and services. For example, our collaboration with Novo Nordisk shows what is possible when health innovators work together to help more people feel great.

We are seeing adoption in weight loss near record levels, even beyond the demand we saw following this year’s New Year’s and Super Bowl campaigns. Within six weeks of introducing direct access to Novo Nordisk GLP-1 products to our platform, we have fulfilled more than 125 thousand shipments for Wegovy products. Our customers are excited about the Wegovy pill in particular. We have seen them respond extremely well to the affordable price point, impressive efficacy, and strong safety profile. It is clearly a strong combination of efficacy, safety, and affordability. Novo has been a terrific partner for us, and I am excited to explore further ways we might collaborate in the future.

Last month, we also announced that providers on our platform can now send prescriptions for Zepbound vials and QuickPen, as well as SOUNDAYO, through Lilly Direct Pharmacy and access self-pay pricing for Hims & Hers Health, Inc. Our ability to drive awareness and cultural conversations about accessibility, as well as our investment in a deeply personal, continuous experience, gives our partners confidence that the people we are helping them reach are getting access to great care and are more likely to remain engaged over time. Moving to the second area driving our progress: our growing global scale. We are rapidly becoming the world's largest consumer health platform, which multiplies our impact.

We expect our planned acquisition of Eucalyptus to close in the second half of this year. This will extend our leadership position in consumer health across Australia, the UK, Germany, Japan, and Canada by leveraging local expertise and existing industry relationships. As we strengthen our presence in current and new regions, we have the opportunity to impact hundreds of millions of people, bringing more data points into our ecosystem and extending the network effects of our platform globally. But bringing customers to the platform is only the first step.

We are helping customers build a long-term daily health routine that they are motivated to maintain, turning better access and expanded treatment options into better health and building relationships that we believe can last for decades. We see ourselves as the best global platform for our industry partners, for two reasons. First, our global presence allows us to drive category growth in new and existing markets. Second, by providing a high-touch, personalized experience, our platform is designed to help customers stick to their treatment plans longer and better achieve their goals than with medication alone. That leads me to the third area of progress I want to highlight.

As we grow, we are becoming more than just a destination for anyone looking to manage existing conditions. We are a trusted, comprehensive health partner that is helping customers proactively discover early signs of conditions that may not be symptomatic yet. The strength of our testosterone offering, which is now serving tens of thousands of men, is the perfect demonstration of this. For most men, signs of low testosterone can be overlooked as just being tired or part of getting older. Through Hims & Hers Health, Inc., that changes. We have designed the offering to catch an important issue most men cannot see before it becomes difficult to ignore.

Customers can track their testosterone levels over time through simple at-home blood tests and work with providers to determine what treatment is right for them, and then easily adjust that treatment, if appropriate, based on their latest blood test. We are seeing this kind of proactive relationship and seamless at-home experience drive real results for customers. 95% of Hims & Hers Health, Inc. customers relying on us for this testosterone support saw an increase in testosterone levels within two months. By prioritizing investments that deepen our customer relationships, we are making it simpler for anyone to be more proactive about feeling their best.

We believe our investment in YourBio’s microneedle blood sampling technology will make deeper health insights across key biomarkers even easier to access, with a simple, painless blood draw. Instead of waiting for symptoms like cardiovascular risk, sexual dysfunction, or hormone imbalance to appear, customers can get a full picture of their current health and manage certain risk factors before they turn into conditions that impact their daily life. That information layer will be key in supporting new specialties like testosterone and menopause as they scale, but more importantly, it allows our platform to evolve with our customers as their needs change.

More and more, we see customers looking for truly proactive and continuous care, informed by health insights that help them not just get healthy, but stay healthy. This is foundational to how the Hims & Hers Health, Inc. customer experience improves over time. This brings me to the fourth area of progress I want to highlight. We are building a health platform that delivers access to higher-quality care as we expand and that is becoming harder to replicate. I would like to invite our CTO to share more on the progress his team has made and the customer experience they are bringing to life.

Given how quickly our technology infrastructure is expanding, and the immense impact we expect it to have on the future of the business, we are excited to have him join us on a quarterly basis.

Unknown Speaker: Thanks, Andrew. I am thrilled to be back to share how we are leveraging data and AI to make ourselves an irreplaceable companion to our customers and an incredibly valuable partner to other health innovators who want to reach and hold on to more customers. Before I get into the platform, I want to share an update on the team. Our engineering team is lean and immensely talented, driven by senior leaders who still build every day. We have also built our AI organization from scratch. We now have nearly 40 members in our AI team—senior AI engineers and applied scientists, PhDs from MIT, Berkeley, and other top schools, and seasoned leaders from top tech companies.

Leaders like this are choosing Hims & Hers Health, Inc. because they see what we see: a platform with scale, data, infrastructure, and customer trust necessary to leverage today’s technological advances to change what people believe is possible in health care. Today, our teams are squarely focused on three key areas. First, we are evolving our existing operating system to better serve our customers and providers across comprehensive, end-to-end care rather than a single condition at a time. The next phase of our growth requires a platform that can support greater complexity while also making the customer and provider experience more approachable. Over the past year, we have been rearchitecting the platform around reusable, modular capabilities.

Our tech stack is built to scale efficiently across new conditions, categories, and geographic regions, allowing us to launch new offerings even more quickly. Our stack now includes a new no-code commercial engine, easily configurable clinical workflows, a modernized mobile and messaging experience, and a more complete view of each customer's entire health journey. We are already seeing the benefits. Launching testosterone, menopause, and labs are early proof points of a platform that can support faster expansion across more areas of health care. This self-serve platform that enables flexible pricing, promotions, membership models, and treatment plans that can be optimized for supporting customer outcomes is the foundation that lets us serve more customers across more conditions more efficiently.

Second, we are embedding intelligence at every step of the care journey, while keeping independent providers responsible for all clinical decision-making. For example, we currently have an AI Copilot live on the provider side of the platform that drafts contextual responses on behalf of our care coaches, which are then reviewed by the care coaches before being sent. This is not just an efficiency play. It is a way to increase the quality of care because it produces responses informed by the full patient context that human coaches alone could not deliver at that scale.

We also recently launched Labs AI, an agent that explains biomarker results in the full, unique context of each customer, flags what matters, and knows when to recommend escalation to a provider. And soon, we will launch an AI weight loss companion that will support customers along their journey, proactively reach out at the right moments to help customers hit their desired outcomes, and prompt clinician engagement when their expertise is needed. The common thread across all of these tools is that guardrails and evaluation frameworks are built into the architecture. Each AI-enabled workflow is designed with clear guardrails on what it can handle automatically and what should be escalated.

We currently support tens of millions of customer touch points annually, and independent providers review, correct, and approve AI inputs—that is our platform design. This means we are generating clinician-verified training signals for our models. This is the highest quality label in AI any company can hope for, and it cannot be acquired. Third, with this infrastructure, we are strengthening a closed-loop proprietary data flywheel that competitors cannot recreate. We are one of the only platforms in health care where consumer intake and diagnosis, treatment journey, provider decisions, and eventual outcomes all live in a single stack. And we have designed our platform to get stronger as these insights grow.

Instead of getting a second opinion, our goal is to bring the value of a thousand opinions directly into the Hims & Hers Health, Inc. experience, informed by nine years of learning what works across a full spectrum of customer profiles. Every patient interaction teaches our models more about the range of potential experiences and needs. Every provider decision sharpens our clinical training data. Every outcome builds our evidence base, illuminating what works, for whom, and why. Eventually, we plan to introduce support for wearables and devices for even deeper insight into our customers' everyday health. Better data sets a cycle in motion—powering smarter agents, improving care, attracting top providers to our networks, and continuously deepening our clinical insight.

We believe our global scale will act as a force multiplier, with models reflecting the populations, disease profiles, and care patterns of multiple geographies, fundamentally improving the intelligence we are building. We own the core IP that brings this experience to life. Importantly, our advantage is the integration of providers, protocols, and regulatory infrastructure, which creates a unified care model that sets us apart from traditional LLMs or frontier AI labs. Our advantage comes from powering the end-to-end experience, from intent to outcome across the full patient journey, including symptoms, diagnosis, treatment, titrations, side effects, and results. We also see the connection across multiple categories.

We believe that this model, combined with our global presence, is an advantage no other players can currently claim. What we are building is a platform that can continuously expand its categories of care with an intelligence layer that personalizes every step of the customer experience, and a trust architecture that earns the right to operate in health care. That is why we believe we are becoming the preferred platform for customers and for partners across the ecosystem. We are not describing a far-off future. We are shipping it today. Thank you. Back to you, Andrew.

Andrew Dudum: I will add that all of the work in this area will not just power deeper and stronger relationships in our current categories. We believe it will also underpin our ability to enter emerging categories, like peptides, with a clinically rigorous, information-rich intake process that is designed to keep customers safe and providers well informed. Our medical team sees meaningful potential in several peptides, and we are pleased to see the FDA moving to more clearly define what is safe and allowable here. The standard bearers in this new category will be the companies that keep the experience physician-first, transparent, and focused on successful customer outcomes.

That does not exist in today’s gray market, where the only peptide options are unregulated, inconsistent in quality, and rarely include clinical support. Our approach to this category would be different, with a focus on physician insights and oversight, a commitment to advancing clinical learnings about safety and efficacy, and access to high-quality treatments. We believe our verticalized infrastructure and domestic supply chain, which we strengthened by investing in our own U.S.-based peptide facility last year, means that our customers can trust us to bring the same rigorous approach to peptide therapies as they have seen in other categories.

Said more simply, we will not launch access to peptides until we meet these very high standards that we believe everyone should be meeting. I will end by saying that I have never been more confident that we are building the future of health. Nine years of data, a verticalized domestic supply chain, an agile and intelligent platform, a leading global footprint, and a growing network of trusted health innovators gives us distinct advantages and reinforces our confidence in our 2030 targets of at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA. We are redefining how the world accesses care, becoming the global destination people trust to feel their best every day.

On our platform, customers discover a holistic, data-driven experience built for their actual lives, not a generic system. We are changing what people believe is possible—health that is simple, deeply personal, and built for everyday life. I will now pass it to Yemi to walk through the financials.

Yemi Okupe: Thanks, Andrew. In March, we made a deliberate strategic pivot within our weight loss specialty—one that we knew would create near-term financial noise but unlock immense potential for the platform to accelerate at scale. Today, I will walk through the initial impact of that decision, early evidence that gives us conviction that it was the right one, our investment priorities moving forward, and finally, our financial profile built from here. We believe the pivot that we made to prioritize branded products within our weight loss specialty will be transformational for the Hims & Hers Health, Inc. platform, and early success signals are already emerging.

As we have stated in the past, the power of our model centers around carrying the best assortment of offerings with the powerful experience our platform is able to provide. In March, we discontinued advertising of compounding products to prioritize expanding the population we are able to serve. With the introduction of branded products, such as the Wegovy pill and Wegovy pen, we are already seeing our addressable market expand significantly. Within weeks of this launch, we are on track to add north of 100 thousand new subscribers per month within our weight loss specialty.

Early signs point toward a high level of subscriber engagement—nearly 90% of these users downloading the app—and the average subscriber of these products interacting with a provider three times in the first month. Our belief is that weight loss is a critical specialty as a result of its ability to bring a broad audience of consumers to the platform, which allows us to cross-sell other products in the future, achieve scale across our pharmacies to accelerate the realization of economies of scale, and gather robust insights to enhance data model quality and ultimately allow us to elevate the tools and services we are able to provide to subscribers and providers.

Our aspiration is to become the default health and wellness provider for consumers around the world. Near-term success centers around expanding the addressable market and becoming a leading health and wellness service provider in each of our key markets while continuing to maintain our ability to drive healthy free cash flow. Longer term, we expect to continue to optimize our cost structure and value delivered to consumers to progressively expand margins. Strong early signals from our pivot, continued robust execution from our team, and the increasing size of the opportunity in front of us reinforce our conviction in our ability to deliver our 2030 ambitions—at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA.

Our financial focal point will be on accelerating growth to establish a leadership position in the U.S. and international markets while maintaining discipline to ensure continued healthy free cash flow generation. To reach our longer-term aspirations, we are undergoing what is likely to be a transition period that may create volatility in GAAP results and ratios, as reflected in our first quarter results. In the first quarter, revenue grew 4% year over year to $608 million, subscribers grew 9% year over year to nearly 2.6 million, and adjusted EBITDA was $44 million, representing a 7% adjusted EBITDA margin.

Revenue and adjusted EBITDA within U.S. operations were temporarily pressured by revenue recognition dynamics from shorter shipping cadences, further compounded by a tougher comparable period resulting from record-level additions of weight loss subscribers in the first quarter of last year. International growth—driven by our acquisitions of ZAVA and LIVWELL—remained strong, as revenue increased nearly tenfold from the first quarter of last year to $78 million. The strategic pivot in our weight loss specialty impacted our financials in the first quarter. Prior to our strategic pivot, we made meaningful investments in product, technology, and other capabilities to support our GLP-1 compounding supply chain.

As a result of our pivot, we incurred approximately $33 million of restructuring costs, primarily consisting of write-downs related to our compounded GLP-1 supply chain that now faces risk of obsolescence. Approximately $28 million of one-time charges negatively impacted gross margins by roughly five points in the first quarter, which were 65% on a GAAP basis and 70% when adjusting for these costs. The remaining $5 million of one-time restructuring charges impacted operations and support costs. In the first quarter, we continued investing in talent and capabilities across several areas, inclusive of technology and operations. We expect to continue investing in technology in the near term as the benefits cascade across multiple areas of the platform.

More robust infrastructure accelerates the pace at which we are able to bring new features and offerings to our consumers. Additionally, specialized technology and engineering talent positions us to unlock even more value for our subscribers as we better leverage insights from throughout the consumer journey—what their symptoms were, what treatments worked versus did not, and what behavioral patterns facilitated greater success across different demographics. These insights have the ability to drive increased tenure on the platform. Lastly, AI talent in particular has the potential to reduce both organizational and operational costs in a way that not only does not sacrifice service quality for subscribers, but enhances it.

We expect technology investments to be financially accretive in the mid to long term with continued signs of success appearing in the near term. Additionally, we expect continued near-term investment in our operational capabilities that enable us to expand into new specialties as well as bring our costs to serve our subscribers down over time. In the first quarter, we continued investing in talent to ensure that the organization is equipped to expand into more complex offerings such as injectable-based low testosterone treatments. In addition, we invested in talent to ensure that we are well positioned to take advantage of opportunities for new offerings, such as peptides, as the regulatory landscape evolves.

Trust remains the cornerstone of the Hims & Hers Health, Inc. brand today and will continue to be as we scale. As in the past, new specialty expansion will follow a thoughtful compliance and consumer-centric framework that ensures the quality and safety standards of the offering align with what consumers have come to expect from Hims & Hers Health, Inc. Gains in marketing efficiency have unlocked our ability to thoughtfully deploy capital to these areas. Marketing as a percentage of revenue improved three points year over year and quarter over quarter to 36% in Q1.

Efficiency gains have come from stronger retention, increased cross-sell happening on the platform organically, and acquisition from lower-cost channels as our brand continues to gain more recognition. As we continue expanding the assortment of offerings across the platform, our belief is that these efficiency gains can continue, also with some quarter-to-quarter volatility. Before going into our investment strategy, I will take a moment to reinforce our operational priorities. Our primary financial objective will center around continuing to grow the business while ensuring that we are generating strong free cash flow to be able to move quickly on market opportunities as they emerge.

From time to time, this may result in heavier investment, or even periodic strategic pivots that impact our GAAP financials, as we saw in the first quarter. GAAP net income declined to a loss of $92 million in Q1. Q1 results were impacted by non-recurring restructuring costs related to the strategic pivot in our weight loss specialty, transaction costs related to M&A activity, and legal costs. While we expect to be positioned to return to net income profitability in 2027, our primary focus will be on driving strong growth and cash flow generation. In the first quarter, we generated $89 million of cash flow from operations and $53 million of free cash flow.

We have found thoughtful ways to deploy capital for capabilities that we have high confidence will drive long-term growth. For example, in Q1, we completed the acquisition of YourBio, a provider of technology that allows consumers to collect blood painlessly from the comfort of their own home. This will be a critical component of our long-term strategy to bring tens of millions of subscribers onto the platform, as it removes friction and prevents consumers from obtaining deeper health insights to unlock a new level of preventative care. As of the end of the first quarter, available cash and short-term investments on our balance sheet were $751 million.

As we mentioned in the past, our primary focus will center on investments that allow our platform to scale from serving tens of millions of subscribers. We also have $225 million remaining on our share repurchase program, which allows us to take advantage of moments when we believe the intrinsic value of our stock meaningfully disconnects from the market value.

Our investments in the coming quarters orient around the strategic growth levers we outlined at the start of this year that are the cornerstones of our 2030 financial ambitions: expanding into new specialties, utilizing technology to elevate the quality of care, broadening access to personalized care across specialties, leveraging partnerships to become a best-in-class curator of health services, and expanding internationally. I will highlight a few of these where we expect heavier near-term investment. First, we will continue investing in our facilities to extend both capabilities and operating efficiency. This sets the foundation to effectively expand into new specialties while also evolving the assortment of our current specialties.

Our scale provides us with the ability to continue verticalizing our existing specialties in a way that provides a level of efficiency that few in the industry can match. We expect to invest in both talent and equipment that sets a foundation to verticalize current specialties as well as those that we may launch in the future. This allows us to not only reduce our cost structure, but also ensures we can fully scale our offerings in a way that meets the high bar that we set for safety and quality. Second, we believe that we can elevate the quality of care by removing friction through technology—both digital and physical.

Our conviction is high that we can increase subscriber engagement and retention through services like at-home blood collection, AI-supported chatbots like the ones we recently began deploying in labs, and eventually expanding data from wearable devices that can further reinforce the feedback loop between subscribers and providers. Finally, international expansion is the area where we expect to make the heaviest investment in the coming quarters. Eucalyptus, which we expect to close in the second half of this year, will meaningfully expand our ability to evolve the consumer experience across several additional markets. Efficiency within mature markets can allow us to invest in strategic markets that can emerge as future profit centers once they scale.

At the time of closing of Eucalyptus, we expect to make a payment of approximately $240 million, with remaining guaranteed consideration and earn-out payments extending through early 2029. Importantly, the flexible structure of the transaction gives us the ability to satisfy a meaningful portion of obligations after closing in either cash or stock, which we believe supports long-term balance sheet flexibility. As we have in the past, we will continue to monitor the landscape for opportunities to reinforce our balance sheet and preserve strategic optionality in a way that remains thoughtful around dilution. With that, I will walk through our outlook for the remainder of the year.

The exact timing of the closing of the Eucalyptus transaction remains unknown, so we have not included it in our updated outlook. In the second quarter, we are anticipating revenue in the range of $680 million to $700 million, representing a year-over-year increase of 25% to 28%. We expect adjusted EBITDA to be between $35 million to $55 million, representing an adjusted EBITDA margin of 7% at the midpoint of both ranges. For the full year, we are raising our 2026 revenue outlook to $2.8 billion to $3.0 billion, representing a year-over-year increase of 19% to 28%. It is our expectation that 2026 adjusted EBITDA will be between $275 million and $350 million.

These adjusted EBITDA and revenue ranges imply an adjusted EBITDA margin of 11% at the midpoint of both ranges. To help contextualize our outlook, I will highlight a few points. First, as previously mentioned, our focus will center on maintaining strong growth. We expect gross margins to compress as we prioritize scaling areas such as weight loss, labs, and international markets, which have a lower gross margin profile than our longer-tenured specialties. These specialties set a foundation for us to build a deeper relationship with our subscribers as well as become the leading global platform for health and wellness services. Second, success has historically centered around verticalizing our operations to bring our subscribers an exceptional level of service.

Our belief is that this drives greater tenure on the platform. Our agreement with Novo Nordisk still allows us to leverage our provider network, digital tools, and breadth of other offerings on the platform to better serve subscribers from beginning to end. This includes leveraging our pharmacies to fulfill medication for our subscribers for products like the Wegovy pill and Wegovy pen, which may unlock efficiencies over time. We recognize revenue associated with products fulfilled by our pharmacies—including those from Novo Nordisk—on a gross basis. Near-term margin headwinds are expected in the second quarter as the majority of our weight loss specialty moves toward one-month shipments.

Third, we expect a meaningful step-up in adjusted EBITDA dollars in the third and fourth quarters. The compounding effect of monthly cohorts acquired throughout the year is expected to result in accelerating revenue and EBITDA growth. Additionally, we expect to gain operating leverage in G&A as well as drive continued marketing efficiency gains. Lastly, we expect to continue making investments in technology on our platform. We believe we can elevate the overall experience for consumers on our platform, whether in the form of new apps and tooling, faster care, or deeper insights.

We also believe that a more robust infrastructure enables us to move faster, and that technology has the ability to meaningfully reduce the cost to serve consumers—whether that be through upgrading software to enable more efficient pharmacy operations or identifying ways to leverage AI to reduce operational and engineering costs across the company. Our expectation is that some of these efficiency benefits start to emerge in 2027. We made a deliberate strategic shift in the first quarter. We believe this shift, in conjunction with the strength of our other specialties and platform capabilities, positions us to become the default health and wellness provider in the U.S.

Our confidence is high that we can replicate the success and similarly establish category leadership in key international markets such as Canada, the UK, Australia, and other European countries. The early signs are promising, giving us greater conviction in the long-term trajectory of the business. Our trajectory provides us with confidence to keep investing and delivering on our mission. The opportunity in front of us is immense. We expect some volatility in GAAP financial margins as we continue to lean into the opportunity to drive more value to consumers.

What we do not expect to change is excellence in execution and rigorous adherence to our capital allocation framework, which we feel will allow us to generate strong free cash flow while establishing category leadership positions around the world. This supports our continued confidence in the 2030 ambitions we outlined last year—at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA. Our success would not be possible without the significant efforts of Hims & Hers Health, Inc. employees around the world. I would like to thank them, our subscribers, and our shareholders for supporting us in our mission to help the world feel great through the power of better health.

With that, I will now turn the call back over to Bill to kick off Q&A with two questions from our retail community.

Bill Newby: Thanks, Yemi. Thank you to everyone who sent us questions over the weekend. Our first question comes from Shi Jun, who asked about our vision for AI on the platform. What is the long-term vision for the recently launched Labs AI health care agent? Specifically, what is the ultimate goal or final form that Hims & Hers Health, Inc. aims to achieve with this product?

Andrew Dudum: Thank you for the question. We are really excited to start speaking about some of these AI initiatives in more detail, and I have asked our CTO to join us on a quarterly basis going forward, which I think will be great. The labs companion and the upcoming weight loss companion are really the first iterations in what I would expect eventually becomes multiple agents that are supporting each stage of the customer's journey across every specialty we serve. Eventually, you have agents that make the intake process more dynamic and conversational.

You have agents that are helping with clinical decisions and recommendations, becoming better informed with tools like MedMatch to get smarter as we scale, making the network effects of the global consumer platform we have broader and more refined. And then I think you have ongoing care and support that is always available, helping you manage multiple aspects of your health on a daily basis. This is much more ongoing engagement, adherence, and clinical needs after treatment.

We are seeing really fantastic tech leadership join Hims & Hers Health, Inc. because I think they see what we see—a platform with massive scale, with unique data, with infrastructure, and ultimately customer trust that is necessary to really take advantage of and leverage this breakthrough in technology. I think these recent launches are really just the first step, frankly, in leveraging the stack, but ultimately we plan to integrate it throughout the entire experience to essentially make it such that no matter where you are in the world, you can pick up your phone, click, and get access to Hims & Hers Health, Inc. and, ultimately, feel great and have the best care possible in your hands.

Bill Newby: More than half of the questions that we received over the weekend were on the developing opportunity in peptides. This is a combination of questions from the retail community, as well as Oman, who asked: How do you view the company's long-term peptide strategy beyond GLP-1s, specifically around the potential differentiation that can come with personalized dosing, new categories, or proprietary formulas? And along those lines, can you speak to the competitive advantage that your domestic supply chain gives you in this area?

Andrew Dudum: As we noted in the prepared remarks, this is a category that we are extremely excited by, particularly when you pair the potential of this category with first-class physician oversight and ultimately a safe supply chain, which really does not exist in the gray market today. We believe that we have a combination of things—the brand, the infrastructure, and the capabilities—to really be a leader in this emerging category as the regulatory path becomes more clear in July. To start, our 503A compounding footprint gives us personalization at scale. With more than, at this point, 1 million square feet of infrastructure, we can support individualized dosing and formulations.

We can improve cost efficiencies and margins and ultimately deliver care that is meaningfully tailored to each patient's needs. Second, as we mentioned in the prepared remarks, our peptide facility, which we acquired last year, gives us a fully verticalized U.S. supply chain. By bringing API manufacturing domestic, we can control far more of the process end to end, giving us advantages in quality, purity, reliability, and brand trust that I think will be incredibly difficult for others to match—and increasingly important as these treatments and therapeutics become more mass market. We have been actively investing in our internal as well as external team of clinical experts that are at the forefront of this category.

So I think that clinical oversight and the clinical protocols that we will build in will help educate patients, give them guidance with regard to what might be appropriate in what circumstance. And then, when you add on top of that the lab testing work that we have been doing and the verticalization of those facilities in order to identify areas of concern and ultimately track improvement, I think the combination of all of that is incredibly exciting.

Given the investments we have made across the business in the last few years, I am not really sure there is anyone better positioned to both check the box on all of these elements that we feel are absolutely critical to delivering this category safely and appropriately, but also really leading in the category and empowering consumers with that access.

Bill Newby: With that, I will pass it back to the operator, and we can begin the regular-way analyst Q&A.

Operator: Then the number one on your telephone keypad. To withdraw your questions, simply press star 1 again. We kindly ask that you limit your questions to one and one follow-up for today's call. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Cory Carpenter with JPMorgan. Please go ahead.

Analyst: Hey, guys. Good afternoon. Andrew, I was going to ask you about peptides—I think you covered that thoroughly in the last question. So maybe I will ask two more finance questions. On the strategic shift—Yemi, I think you mentioned that there were some margin headwinds as you shift to shorter shipping cadences with the branded products. Maybe zooming out a bit, could you just talk about what is the contribution dollar profile for a branded customer versus a legacy compounded customer? That is question one.

Then question two, just for the change in your full-year revenue and EBITDA guide, is there any way to isolate how much of that is due to the weight loss strategic pivot versus the rest of the business? Thank you.

Yemi Okupe: Great. Thanks for the question. With respect to the difference in unit economics between branded and compounded products, on a dollar basis the two are roughly comparable. As part of the strategic pivot, one of the things that we have always felt is necessary for success on the platform is really bringing a broad assortment that is available for consumers. We feel that enables us to go after a larger and larger audience. What we saw as we expanded assortment on the platform is that the number of consumers and the demand and the traffic coming to our platform reached levels post-launch that we really had not seen since some of the peak periods in 2025.

This does a couple of things for us. First, we will be a pretty significant beneficiary in our weight loss specialty. Also, as we increasingly broaden the number of specialties that we offer on the platform, we are able to draw interest into some of those other specialties, either as the consumer is coming in or over time as we look at the relationship that we are building with consumers and the value that we are bringing to our subscriber base, potentially cross-selling them over time. The conviction in the demand that we are seeing, alongside continued strength across our other specialties in the U.S., is what gave us the conviction to elevate the guide.

Operator: Your next question comes from the line of Maria Ripps with Canaccord Genuity. Please go ahead. Great. Good afternoon, and thanks for taking my questions. Can you give us a sense of what portion of your compounded GLP-1 subscribers have transitioned to branded products since the Novo deal went live and what retention looks like through this transition? And then secondly, Andrew, just wanted to follow up on peptides. How far along are you in terms of your readiness to go to market if the FDA recommends reclassification in July? Are there any other investments that are still needed? And how are you sizing the opportunity here internally relative to other specialties?

Andrew Dudum: Thanks, Maria. Maybe I will start on the peptide side. I have never believed strategically it was critical for us to be first to market in any category, and I think that is going to be especially true when it comes to the peptide category. What is most critical is that when we come to market, we are best in market. There is a long list of what is necessary to deliver that category safely, including data transparency, validated supply chains internally, and bulletproof clinical protocols. The team is actively working on all of those elements.

We expect in July to get more of an understanding—at least on some of the peptides that possibly could be moving to Category 1—and then possibly more information at the end of the year. We are preparing for all of the elements we think would be critical to bring that category to market. We likely will not be first to market, but when we do, we will make sure that we feel like we have everything done the right way. From a scale and opportunity standpoint, it is hard to size, although the demand—both on the men’s and women’s side—instinctively seems to be extremely large.

There is a growing emergence that the GLP-1 category probably started and provoked, which is about patients looking to be more proactive with health, looking to not only solve the specific issues that might be acute, but also get ahead in a more preventative and longevity-focused manner. I think this is appearing in a lot of ways—one, in the peptide side of the house, but also in categories such as lab testing, which we have launched and are seeing great progress; the same thing with testosterone and menopause.

These are forward-leaning categories—people starting to take their health in their own hands and getting empowered—and I think that is going to be a really strong tailwind as emerging therapies—peptides or other longevity-type therapies—come to market. On the question relating to GLP-1 compounded versus branded, when we switched strategically over to the branded side, almost all of the new business is now coming in on the branded side, and many have transitioned over. That is how we are delivering north of 100 thousand-plus new on the volume side for Wegovy. We think this was an incredibly valuable transition.

We see it in the scale of new customers coming in the door today, which is larger than, as Yemi said, any spikes we saw even during the most important seasonal campaigns such as New Year’s and Super Bowl campaigns. We are really excited by that transition and actively in conversations with Novo, and I think they share the excitement as well with what they are seeing.

Operator: Your next question comes from the line of Mark Mahaney with Evercore. Please go ahead.

Analyst: I just want to ask two financial questions. Yemi, you talked about the gross margin pressures—more puts than takes, or takes than puts—but can you help quantify just how much further down we could see gross margins as you go through the cycle between now and the end of the year? And then in terms of EBITDA margins in the back half of the year, it implies pretty high incremental margins. Can you go through that a little bit—your confidence that you can ramp up incremental margins like that in the back half of the year? Thank you very much.

Yemi Okupe: Thanks for the question, Mark. On gross margin volatility, as part of the strategic pivot, we do expect to see general volatility in some of the GAAP measures. That said, our conviction in the ability to deliver strong absolute EBITDA dollars and strong free cash flow dollars remains very high. We would expect to see, over the coming quarters, a couple of points of degradation on gross margins. Similar to prior periods where, when we focused on developing a leadership position, we ultimately took those benefits and leveraged them to drive economies of scale, this is a similar playbook.

The focus right now is to become the default health and wellness provider in the U.S. and establish a leadership position, and ultimately position ourselves to realize greater and greater economies of scale, where we are able to pass value back to consumers in a way that no one else can. As we are able to drive continued strong cash flow out of our domestic operation, we can reinvest that to follow the same playbook globally. On the EBITDA in the back half of the year, there are a few mechanics at play. First, the weight loss transition: in Q2 and beyond, the vast majority of consumers coming onto the platform today are actually on a one-month cadence.

Previously, for the compounded business, that was a two-month cadence. Just on the technical mechanics, as you start to stack more cohorts each month now—as opposed to each quarter—you inherently get a benefit on EBITDA as those consumers return. Additionally, we made pretty extensive G&A investment in the front half of the year. As we progress through the year, G&A will experience leverage because we will not need to grow the G&A expenses on a quarter-to-quarter basis with the same degree. Lastly, we are seeing marketing efficiency that we expect to continue as we strongly cross-sell users, continue to see more throughput through low-cost acquisition channels, and continue to see stronger retention patterns.

Those elements give us very high conviction in the ability to continue to compound EBITDA dollars in the back half of the year.

Operator: Your next question comes from the line of Craig Hettenbach with Morgan Stanley. Please go ahead.

Analyst: A question on the dynamic of the revenue guide coming up but EBITDA lowered. You have touched on some of this, but I am also interested in some of the new category launches—be it testosterone, menopause, and labs—how you think about the ramp period and then when those get to a little bit more mature margins. That is number one. Then second, on gross margins to compress—relative to how you thought about it at 75% longer term—any kind of range you are thinking about on a longer-term basis in terms of where the model is moving?

Yemi Okupe: Thanks for the question, Craig. In terms of taking revenue up, it largely mirrors the financial priorities we spoke about in the prepared remarks. We have seen an immense opportunity in front of us, in both the U.S. and globally, and we are going to continue to invest to establish a leadership position. We have observed in the past that when we are able to do that, we can pass value back to consumers—both from leveraging technology and richer datasets—and we are also able to set up an industry-leading cost structure that enables us to expand margins or pass value back to consumers.

In the guide, taking revenue up while leaving ourselves more flexibility on EBITDA is a reflection of that priority and the confidence that we have in our ability to capture the immense opportunity in front of us. With respect to the gross margin dynamics, that is something we will continue to provide visibility into, but the overall financial equation for the company has not changed: drive strong absolute EBITDA dollars and control our own destiny with cash flow generation, while establishing the leadership position we discussed.

Operator: Your next question comes from the line of Justine Patterson with KeyBanc. Please go ahead.

Analyst: Could you expand on how AI could change the user experience over time and how you are thinking about incorporating feedback loops? It does seem like there is a unique opportunity there to deepen insight into the customer and gain more outcomes data on treatments. And then secondly, I would love to hear more about your approach to wearables and how you are thinking about building versus partnering with some of the existing players out there. Thank you.

Andrew Dudum: Great questions. On the AI side, we are essentially building a multi-agent model where both consumers and providers are empowered at each step of the customer journey to optimize, personalize, and ultimately drive better outcomes for the patient. Part of this is efficiency. A bigger part is quality-of-care network effects. With every patient that comes to us, we can get smarter and more capable of treating the next behind them. There is this concept in health care of a second opinion, and the models and data layer we are building should enable it such that any patient anywhere in the world can get 1,000 opinions at the same time through our holistic data across nearly 10 years of experience.

You should experience faster responses, more personalized dosing and recommendations on care, and high-touch engagement experiences post-consultation where you are nurtured and walked through milestones as you adhere to care. The outcome should be much higher long-term retention, better engagement rates, and likely much deeper relationships with these patients. On wearables, this is tied in—another data source similar to labs that allows us to do the high-touch care model much better. We are evaluating both paths: our own devices that can be easily worn and charged and track all the basics people love to track, as well as partnering with the ecosystem people already use. My philosophy is both are probably right.

We want to be universal such that if you have specific devices you love, they will integrate seamlessly with the Hims & Hers Health, Inc. experience so that your provider can leverage that data. In addition, we believe we can design and bring to life world-class hardware experiences, as we are doing with YourBio for at-home blood testing. We can deliver this at cost, extremely affordably, built into memberships and membership tiers, such that your engagement and depth with the platform can be much richer and more powerful.

Operator: Your next question comes from the line of Eric Percher with Nephron Research. Please go ahead.

Analyst: Andrew, I would like to ask you to walk us through the brand manufacturer value proposition that you are expounding when you are out in the marketplace and the extent to which you think that will resonate beyond GLP-1s. Then, Yemi, I just wanted to double-click on the comment you made relative to the second-half run rate. Do you view that as a reasonable annualization rate, or is your comment on investment intended to temper us from annualizing that?

Andrew Dudum: Great question. The relationship on the branded side is quickly evolving, but we have had enough data points—whether through Novo or through companies like Grail or others—to see that the innovative categories of pharma, biotech, devices, and advanced diagnostic testing need distribution. Our ability to have the largest geographic footprint and the deepest relationships with consumers as the front door is incredibly powerful for these partners. It is about both building awareness for their category and scaling growth for specific treatment therapies. As more come to market across these categories, there is immense value in our working relationships with these partners to figure out how we can deliver the best things to the right people.

Trust with consumers as the curator of high-quality everyday care is our ultimate goal, and it requires great relationships with innovators across the stack. Our relationship with Novo domestically, as well as our future relationship set that we will have with Eucalyptus and drug companies globally, offers a lot of learnings in how innovators can work together to bring great products to people at scale. It is accelerating a lot of conversations right now—there are probably two dozen of these happening, domestically and globally, across pharma, biotech, new devices, and diagnostics—because all of these innovators need distribution and a partner that can ensure the right customers are getting access to the right care and ultimately are getting the right outcome.

We can be a key partner in delivering that.

Yemi Okupe: On the second part of your question, given the pivot in weight loss and the success that we are seeing across newer areas like labs and testosterone, the focus is on scaling each of our categories in the U.S. very quickly to establish a leadership position. We have seen in the past that with scale, we have the ability to drive higher and higher margins over time. With record-level users coming to the platform, the focus is on continuing to expand share, reach, and the overall subscriber base. We would expect to see accelerating revenue growth over the back half of the year.

Investment may vary quarter to quarter as we lean into opportunities that show progress, but the overall equation we are focused on will not change: establish leadership positions, position ourselves to drive economies of scale, and ensure we are doing so while generating healthy free cash flow.

Operator: Your next question comes from the line of Brian McDonald with Needham. Please go ahead.

Analyst: Hi. Thanks for taking my questions. I appreciate all the color on the call here with the strategic pivot. Andrew, I am curious—of the categories you have talked about a lot here, weight loss, labs, testosterone, menopause—are these primarily U.S.-based drivers of the business today, or are you seeing incremental or similar opportunities within the early stages of your expansion internationally and what you are seeing through LiveWell and ZAVA thus far? How much of those investments are going to be U.S. versus international?

Andrew Dudum: Great question. Right now, the newer categories—labs, menopause, testosterone, etc.—a lot of that iteration and category learning is taking place domestically. This playbook has worked very well in the past; we have been doing this now for a few years in the UK, where we optimize, refine, and bring to market here in the U.S., and then quickly—maybe six to nine months later—broaden into other geographic regions. On the weight loss side, it is a mixed bag because different geographies have different weight loss models. Our international geographies have actually been operating with branded pharmaceuticals and manufacturers for much longer and have more tenured relationships with them, so in many ways they are already seeing that model adoption.

But for new categories like labs, menopause, testosterone—and the same will be true with peptides—those will start here domestically and then quickly follow into the five or six other most critical regions.

Analyst: Thanks. And then just quickly a follow-up for Yemi. Is it safe to say, based on that, that as we think about the increase in the guide on the top line for the remainder of the year, that is predominantly U.S.-based assumptions, not much for international?

Yemi Okupe: We expect strong growth in the international component, but in the U.S., as we clear some of the revenue recognition dynamics we spoke about and also see early signals from the strategic pivot and the scaling of new categories, there will be a meaningful acceleration in the U.S. business, which we feel is important as we continue to remain aggressive with global expansion.

Operator: That concludes our question and answer session. Ladies and gentlemen, this concludes the Hims & Hers Health, Inc. First Quarter 2026 Earnings Call. Thank you all for joining. You may now disconnect.

Unknown Speaker: Good.