Hims & Hers Health, Inc. · Q2 2026 call

in the second quarter, we welcomed more than 300,000 subscribers, bringing our global subscriber base to nearly 3 million people. To put that into context, we are now serving a patient population that rivals some of the largest healthcare systems in the United States

We are making AI load-bearing, not decorative.

Our aim is to continue to drive scale, but do so in a thoughtful way that lays the foundation for robust EBITDA and cash flow generation.

These results exclude approximately $81 million of non-recurring costs incurred during the quarter, consisting of acquisition and transaction costs primarily related to the closing of our Eucalyptus acquisition, restructuring costs following the strategic pivot in our weight loss specialty earlier this year, and legal contingency accruals related to recent litigation with the FTC.

As branded weight loss products and international revenue become a larger portion of the business, we expect gross margins will remain below the levels we have historically achieved.

During the quarter, operating cash flow was negative $36 million, and free cash flow was negative $68 million.

First, we established a $400 million receivables facility, giving us an efficient mechanism to convert the growing base of short-dated receivables generated by our branded weight loss offering into cash with capacity that scales alongside the business. Second, we completed a convertible debt offering over $400 million, further reinforcing our balance sheet. Our expectation is to resume free cash flow generation in the second half of the year.

we expect the compounding effect of the weight loss cohorts acquired throughout the first half to drive a meaningful step-up in adjusted EBITDA dollars in the second half, accompanied by continued leverage across our operating expenses as revenue growth in the U.S. re-accelerates.

we expect our international business to generate at least $600 million of revenue in 2026, which will continue to operate at or near breakeven on an adjusted EBITDA basis as we prioritize scale.

Our operating model today is that we are waiting on full and final rulemaking from the FDA. That could come in a lot of different forms and factors. It could come on different timelines. But we think it's really important for them to complete that process before we bring this to market.

Patients are interacting and messaging with their care teams three times as much with the new care operating plan and operating system that we have rolled out. At the same time, the actual tasks for humans has dropped 50% when you are talking about non-clinical tasks.

Most notably on the men's hormonal side of the business, within a couple of quarters, has become the fastest growing business outside of weight loss, and quickly will be eclipsing that $100 million threshold.

The short answer is Eucalyptus, top and bottom revenue, is included in the second quarter results. On the revenue side is roughly $40 million coming from Eucalyptus.

for Eucalyptus, I think that roughly they were running at break-even to moderate losses.

we were not prepared to accept the terms we do not believe reflect the facts or the law. We are confident in our position and intend to defend it vigorously.