Hims & Hers Health (NYSE: HIMS): Revenue Growth Overshadowed by Wider Loss and Legal Scrutiny

• Hims & Hers Health (NYSE: HIMS) reported second-quarter revenue of $753.21 million, exceeding expectations and increasing 38% year over year.
• The company recorded a loss of $0.37 per share, substantially wider than analysts expected, as gross margins declined and operating expenses increased.
• Kessler Topaz Meltzer & Check is investigating potential securities-law claims following a lawsuit filed against Hims & Hers by the Federal Trade Commission and government partners.
• Deutsche Bank raised its price target from $25 to $26 while maintaining a Hold rating.

Hims & Hers Health is a digital health and wellness company that connects consumers with healthcare providers and offers prescription medications, over-the-counter products, laboratory testing, and subscription-based health services. Its principal treatment categories include weight management, sexual health, hair loss, dermatology, and mental health.

The company is facing increased legal and regulatory scrutiny. On July 29, 2026, the Federal Trade Commission, joined by Utah and California through Los Angeles County, filed a federal civil lawsuit against Hims & Hers. The complaint alleges that the company shared sensitive consumer health information with advertising platforms, including Meta and Snap, while also engaging in deceptive billing and subscription-cancellation practices. These remain allegations, and the case has not been decided.

Following the lawsuit, Kessler Topaz Meltzer & Check issued an investigation notice encouraging Hims & Hers investors to contact the firm. The law firm is examining whether the circumstances could support claims under federal securities laws. The notice itself does not establish that Hims & Hers or its executives violated securities laws. 

Hims & Hers reported mixed financial results for the second quarter of 2026. Revenue reached $753.21 million, an increase of 38% from $544.83 million in the prior-year quarter. The result exceeded the approximately $698.89 million estimate cited by some market-data providers. Subscribers increased 19% to nearly 2.9 million, while monthly revenue per average subscriber rose 21% to $92.

Despite the revenue growth, profitability deteriorated. Hims & Hers reported a GAAP net loss of $86.29 million, compared with net income of $42.51 million a year earlier. The company recorded a basic and diluted loss of $0.37 per share, compared with earnings of $0.19 and $0.17 per share, respectively, in the prior-year quarter.

The loss was considerably wider than analyst expectations. Some services reported an expected loss of $0.05 per share, while Reuters cited a consensus loss of $0.01. Gross margin declined to 64% from 76% as the company expanded its branded weight-loss drug offerings and international operations. Total operating expenses increased to $578.0 million from $389.5 million. Hims & Hers nevertheless generated adjusted EBITDA of $60.3 million, although this was below the $82.2 million recorded a year earlier.

The company raised its full-year 2026 revenue guidance to between $3.1 billion and $3.3 billion. However, it updated its adjusted EBITDA forecast to a range of $275 million to $325 million, reflecting continued pressure on profitability as it invests in weight-loss services and international expansion.

Following the results, Deutsche Bank analyst George Hill raised his price target for Hims & Hers from $25 to $26 while maintaining a Hold rating. Relative to the stock’s August 11 trading price of approximately $31.09, the target represented potential downside of about 16.4%.

Overall, Hims & Hers continues to deliver strong revenue and subscriber growth, but declining margins, a wider GAAP loss, and pending legal challenges create significant risks for investors.