Hims & Hers Q2 2026: What 38% Growth Says About Telehealth

A company can grow revenue 38% in a quarter and lose $86.3 million in the same quarter. Hims & Hers did exactly that, and both numbers come from the same press release.¹

I am not interested in cheering or sneering. I want to read the release the way an independent clinic owner should, asking one question of each line: does this change how I run my clinic?

Educational content only. This is not legal advice, financial advice or investment advice.

What did Hims & Hers actually report?

Strong top-line growth with weaker profitability, side by side.

Operating cash flow was negative $35.9 million against negative $19.1 million a year earlier, and free cash flow was negative $68.2 million against negative $69.4 million.¹ Management guided Q3 2026 revenue to $880 million to $900 million and raised full-year 2026 revenue guidance to $3.1 billion to $3.3 billion.¹

Where did the 38% come from?

Partly from the US, and in larger part from outside it.

Domestic growth

US revenue was $621.8 million, up 16% from $537.3 million.¹ That is the number most comparable to what a US clinic can influence, and it is healthy for a company this size. The CFO said domestic growth accelerated to 16%.¹

Rest of World

Rest of World revenue was $131.4 million against $7.5 million a year earlier. The company credits the increase partly to the Eucalyptus acquisition, which closed in June.¹

Here is my own arithmetic, from the release's figures. Total revenue rose $208.4 million. The US contributed about $84.5 million of that and Rest of World about $123.9 million, which is roughly 59% of the increase. In other words, the headline growth was partly bought, which is a legitimate strategy, but not one you can copy by running better ads.

The first-half context

Six-month revenue was $1,361.3 million, up 20% from $1,130.8 million.¹ Subtracting the Q2 figures from those totals gives a Q1 2026 of about $608 million against $586 million a year earlier, up about 4%. That is my arithmetic. It says the 38% quarter was a step up from a much flatter start to the year.

A year ago the story was different. In Q2 2025 revenue grew 73% and subscribers grew 31%.² Growth in both measures has slowed since, even with an acquisition contributing.

Why did gross margin drop 12 points?

The release points at a shift in the GLP-1 business, but it does not size every factor.

Gross margin was 64% against 76% a year earlier.¹ The release says that after its 2026 US "WL" announcement the company now offers branded GLP-1 medications and, on a limited scale, compounded GLP-1 medications. It reports $38.1 million of restructuring charges tied to this shift for the six months, including $28.5 million in cost of revenue.¹

That context matters for every clinic in the category. The FDA warned 30 telehealth companies on March 3, 2026 about false or misleading claims on compounded GLP-1 products, including claims that implied they were equivalent to approved drugs.⁴ The product mix, the sourcing and the marketing rules are all moving at once (I covered the offer side in Branded vs Compounded in 2026). A change in what you sell changes your cost of goods before it changes your ad results.

I will not pretend to know how much of the 12 points comes from mix, restructuring, the acquisition or something else. The release does not split it. What I can say is that margin pressure arrived alongside faster growth, which is the usual order.

What do legal costs and cash flow add?

A reminder that compliance and growth share one budget.

The quarter included $47.5 million of legal contingencies, none in Q2 2025, which the company excludes from Adjusted EBITDA as non-recurring.¹ The FTC's complaint against the company came on July 29, after the quarter closed.³ The FTC says the case will be decided by the court, so I will not connect the two beyond noting that both sit in the same period for a reader.

What I take from the cash lines is simpler. Even at this scale the company was burning cash from operations in the quarter.¹ Growth is expensive for everyone.

What does this mean for an independent clinic?

That your advantage is discipline, not size.

Five numbers to track monthly

Read the 21%

Monthly revenue per average subscriber rose 21% to $92.¹ Revenue per patient rising faster than the patient count is the cleanest sign of a healthy model. If you can lift yours by serving each patient better, you do not need to chase volume.

Keep the compliance bill in your plan

The FTC complaint alleges billing, cancellation and data-sharing problems at the largest operator in the category.³ Allegations are not findings, but they tell you where scrutiny is pointing. I cover the billing side in FTC v. Hims & Hers: The Subscription and Consent Lessons and last year's comparison in Telehealth Growth Desk: Hims Q2 2025.

The takeaway

The release is a good case study in what happens when you grow fast in a crowded, regulated category: revenue climbs, margin falls, cash burns and legal costs show up. None of that means growth is wrong. It means growth should be priced.

If you want a second opinion on your own funnel, tracking and billing, start with the telehealth page. Your attorney decides what applies to your clinic. I help with the numbers behind the growth.

Price your growth before you buy it.

Keep building.Ekai