HIMS

On August 21, 2026, Bloomberg reported that Hims & Hers Health, Inc. (NYSE:HIMS) was enrolled in Visa Inc. (NYSE:V)'s Acquirer Monitoring Program after customer credit card disputes in its weight-loss subscription business exceeded acceptable levels in July. Each dispute carries an $8 surcharge, resulting in a bill of nearly $75,000 due in September, and Hims must get its dispute rate below Visa Inc. (NYSE:V)'s 1.5% threshold for three consecutive months to exit the program. A Hims spokesperson said the company has seen "a relatively small number of disputed charges" and has taken steps to address the issue. The news follows an FTC action from late July alleging deceptive billing and cancellation practices, which Hims has said it will "vigorously defend" against. Shares fell as much as 9.5% on the news. Hims & Hers Health, Inc. (NYSE:HIMS) itself characterizes the scale of the problem as small relative to its overall business. The company told Bloomberg the disputed charges represent a relatively small number of transactions, and the roughly $75,000 September surcharge bill is immaterial next to Hims' overall revenue. It is a financial cost investors can weigh directly rather than an open-ended liability. Weight-loss demand continues to drive strong growth. Despite profitability issues in its weight-loss segment, Hims keeps gaining customers at a rapid pace. In the second quarter, subscriber numbers grew 19% to 2.89 million, while average monthly spending per subscriber jumped 21% to $92, pushing total revenue up 38% to $753.2 million. This proves a key point for investors: billing disputes have not killed actual customer demand. Hims has a recent, credible track record of resolving exactly this kind of billing and regulatory friction. Six months earlier, Hims resolved a legal dispute with Novo Nordisk over compounded GLP-1 drugs by striking a partnership that let it sell FDA-approved Ozempic and Wegovy directly, a deal that sent shares up 41.7% at the time, evidence management can convert regulatory pressure into a resolved, even positive, outcome. Visa Inc. (NYSE:V) placed Hims & Hers Health, Inc. (NYSE:HIMS) in its monitoring program after customer dispute rates for its weight-loss subscriptions rose too high. Hims must keep its dispute rate below 1.5% for three straight months to escape the program. This penalty hits right as the FTC and state regulators sue Hims over tricky billing and hard-to-cancel subscriptions, charges Hims denies. If forced to make subscriptions easier to cancel, Hims will lose customers, lower retention, and shrink its subscriber revenue. Revenue growth is wiping out company profits. Hims swung from a $43.5 million profit to a $127.9 million second-quarter loss, even though revenue grew 38%. Operating expenses jumped 48%. Reuters also reported that gross profit margins fell for the fourth straight quarter as Hims pours money into branded GLP-1 drugs and international expansion. Regulatory and legal risks keep piling up since the Visa Inc. (NYSE:V) dispute is not happening in a vacuum. Hims faces growing regulatory pressure over compounded GLP-1 drugs, its switch to branded medications, and a new FTC lawsuit alleging privacy, billing, and cancellation violations. Barron's also underlined the FTC lawsuit, litigation reserves, and shrinking profits as growing investor concerns. These legal troubles drive up compliance costs and create real uncertainty around Hims' primary growth engine. Hims & Hers Health, Inc. (NYSE:HIMS) still powers a strong growth story with rapidly growing subscriber numbers, higher spending per customer, and a massive opportunity in weight-loss treatments. The Visa Inc. (NYSE:V) penalty itself costs very little money, and management has previously proven its ability to handle regulatory hurdles through its Novo Nordisk partnership. However, the credit card disputes add to growing concerns about Hims' billing practices, right as the company struggles to turn rapid sales growth into actual profits. A sharp quarterly loss, shrinking gross profit margins, and rising legal and regulatory risks put the focus squarely on whether Hims can sustain high-quality growth. While we acknowledge the potential of HIMS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Warren Buffett "Blew It" on Alphabet (GOOGL) And Made It Berkshire's Third-Biggest Bet and Sony Group (SONY) and Taiwan Semiconductor (TSM) Are Betting $4.7 Billion on the "Eyes" of AI Machines. Disclosure: None. This article is originally published at Insider Monkey.

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Hims & Hers Health (NYSE:HIMS) and its peers. Healthcare technology companies develop software, data analytics, and digital platforms supporting clinical operations, administrative functions, and patient engagement across healthcare systems. Tailwinds include healthcare digitization driving demand for electronic health records, telehealth platforms, and AI-powered diagnostic tools. Regulatory incentives promote interoperability and data sharing, while labor shortages increase automation demand. Headwinds include lengthy sales cycles with risk-averse healthcare buyers, complex regulatory requirements including data privacy compliance, and integration challenges with legacy systems. Competition from established technology giants entering healthcare and reimbursement uncertainties for digital health solutions add market complexity. The 7 healthcare technology stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.7% while next quarter’s revenue guidance was 2.8% above. Thankfully, share prices of the companies have been resilient as they are up 9.1% on average since the latest earnings results. Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE:HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products. Hims & Hers Health reported revenues of $753.2 million, up 38.2% year on year. This print exceeded analysts’ expectations by 7.8%. Overall, it was a strong quarter for the company with revenue guidance for next quarter exceeding analysts’ expectations and full-year EBITDA guidance topping analysts’ expectations. Hims & Hers Health pulled off the highest guidance raise of the whole group. The company added 307,000 customers to reach a total of 2.89 million. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 5.3% since reporting and currently trades at $30.09. We think Hims & Hers Health is a good business, but is it a buy today? Read our full report here, it’s free. Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE:EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions. Evolent Health reported revenues of $652.5 million, up 46.9% year on year, outperforming analysts’ expectations by 9.4%. The business had a stunning quarter with a beat of analysts’ EPS estimates and full-year revenue guidance exceeding analysts’ expectations. Evolent Health delivered the biggest analyst estimate beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 60.7% since reporting. It currently trades at $4.95. Is now the time to buy Evolent Health? Access our full analysis of the earnings results here, it’s free. Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ:ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models. Astrana Health reported revenues of $972.5 million, up 48.5% year on year, falling short of analysts’ expectations by 1.3%. It was a slower quarter as it posted full-year revenue guidance slightly missing analysts’ expectations. Astrana Health delivered the fastest revenue growth but had the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 13.2% since the results and currently trades at $38.65. Read our full analysis of Astrana Health’s results here. With technology that automatically adjusts insulin delivery based on continuous glucose monitoring data, Tandem Diabetes Care (NASDAQ:TNDM) develops and manufactures automated insulin delivery systems that help people with diabetes manage their blood glucose levels. Tandem Diabetes reported revenues of $254.6 million, up 5.8% year on year. This print was in line with analysts’ expectations. Aside from that, it was a mixed quarter as it also recorded EPS in line with analysts’ estimates but full-year revenue guidance meeting analysts’ expectations. The stock is up 13.6% since reporting and currently trades at $21.35. Read our full, actionable report on Tandem Diabetes here, it’s free. Started in 2011 to tackle the problem of high prescription drug costs in America, GoodRx (NASDAQ:GDRX) operates a digital platform that helps consumers find lower prices on prescription medications through price comparison tools and discount codes. GoodRx reported revenues of $200.4 million, down 1.3% year on year. This number topped analysts’ expectations by 3.5%. Overall, it was a very strong quarter as it also put up full-year revenue guidance exceeding analysts’ expectations and full-year EBITDA guidance topping analysts’ expectations. GoodRx had the slowest revenue growth in the group. The stock is up 11.6% since reporting and currently trades at $3.65. Read our full, actionable report on GoodRx here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Image source: The Motley Fool. Monday, Aug. 10, 2026 at 5:00 p.m. ET Co-Founder and Chief Executive Officer - Andrew Dudum Chief Financial Officer - Yemi Okupe Chief Technology Officer - Mohamed ElShenawy Director of Investor Relations - Bill Newby Operator: Hello, everyone. Thank you for joining us, and welcome to the Hims & Hers Health Second Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Bill Newby, Director of Investor Relations. Bill, please go ahead. William Newby: Good afternoon, everyone, and welcome to the Hims & Hers Health Second Quarter 2026 Earnings Call. On the call with me today is Andrew Dudum, our Co-Founder and Chief Executive Officer; Yemi Okupe, our Chief Financial Officer; and Mo ElShenawy, 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 expectations 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-K 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.hims.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 being here. This quarter, we made significant progress on building a first-of-its-kind health experience that proves it is possible to deliver access to world-class care on a global scale at a reasonable price. As our customer base grows and our influence on the industry deepens, we are showing that a business can both take care of people and be profitable. Before Yemi walks us through financials, I want to highlight three key areas driving our continued growth. First, our investment in AI and technology is delivering a health experience that we believe no other company can replicate. Our CTO, ElShenawy, is on the call today to walk us through how that is coming to life in both deeper customer relationships and increasing business efficiencies. Second, our world-class infrastructure means we can not only support customers across a greater spectrum of needs from beginning to end, but also safely enter more complex categories at a faster pace and at a greater scale than others in the industry. And third, our global reach, when paired with our technology and infrastructure, has created a platform that shows customers and industry leaders alike that access to high-quality care can be personal and widely accessible. Hims & Hers is building something entirely new, and it is increasingly difficult to replicate. Nearly 3 million customers believe in a future of health that is proactive, personal and built for their lives, and we are thrilled to be the partner bringing it to them every day. Let's start with our investment in AI. By weaving AI into the entire platform, we'll deliver a unified AI-native health experience we believe no other peer or LLM can match. Mo, our CTO, will walk us through what that looks like for our customers and the early success we've seen, but I want to start with the why. Why we are taking this approach, and why we know it is the path to dramatically improving the care experience for customers everywhere. 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 health care systems in the United States. And unlike frontier AI companies that many people currently rely on for day-to-day advice, we support customers through their entire health journey from their very first question to their clinical treatment and continued follow-up care. That end-to-end closed-loop relationship, combined with our scale, is incredibly powerful. Customer trust isn't something you can buy. It has to be earned. For 9 years, millions of people have trusted Hims & Hers to help them feel comfortable seeking care for conditions that should be normalized. We have earned that trust by listening to their concerns, finding solutions to meet them and delivering outcomes year after year specialty by specialty, 9 years of data that deepen our evidence base of what works for whom and why. That accumulated understanding is what makes our platform different. It's powered by the millions of customers who have shown us just how impactful great care can be, and that's why they trust us with what comes next. Other health companies major in the minor. They tack on minor improvements to the existing system while we're making our platform completely AI-native, so that our platform can provide an integrated experience that is alive and personal, one where AI coaches and support agents, a care team, a clinician and a pharmacy are one unified system with a single goal: keeping people well. Our customers don't just ask us about their health or seek out specific treatments through our platform. They go on a long journey with us. And we believe the intelligence we are building around that relationship will make Hims & Hers their preferred everyday health partner. I'd now like to turn it over to Mo to speak more on how this is coming to life. Mohamed ElShenawy: Thanks, Andrew. Our AI-centric technical strategy is the difference between adding a feature and reimagining the entire customer experience. We are making AI load-bearing, not decorative. We are replacing the traditional telehealth model with something entirely new for our industry, a unified care experience where customers' care team lives in a single platform that already knows them. No portals, no starting over, no explaining yourself to a tool that can only give you one-size-fits-all advice. Just care that is built for you, guided by data, delivered by clinicians and powered by seamless technology. This is the foundational customer experience, which we plan to roll out across our entire platform over time. It leverages our closed-loop data, and it is becoming the basis for personalization across the entire journey, smarter outreach, earlier risk signals and tools that help providers tailor treatment to each patient. We are seeing impacts for our customers and our business as a result of this approach, and I would like to walk you through both. To start, the AI-native experience we just launched for Hers weight loss customers is driving meaningful change for the people who come to us for care. We began a phased rollout in early July, and the results were immediate. Customers began engaging more often. Hers customers using the new care experience are sending 3x as many messages on the platform with AI answering 80% of their questions to support their treatment journey. As a result, AI has reduced nonclinical tasks like order updates and general side effect questions that are handled by our support teams by nearly 50%. We know that a lack of engagement and poor adherence can lead to poor outcomes, which is why we're thrilled to see customers having more engaged, intentional conversations without overloading our care teams. This also means clinical challenges like dosage adjustments or changes in treatments can be identified and flagged for a provider more quickly, resulting in earlier interventions that help our customers stay on track. In just a few months, the internal updates we've rolled out are powerful enough that we have meaningfully reduced how much we rely on agentic AI customer support vendors. And eventually, we expect to roll off them completely. We've built a clinically grounded agentic AI customer support experience that we believe serves our customers better. We are excited to bring the experience to more of our customers across the world, and we think we are moving closer to a future where the model we are building becomes the backbone for health platforms beyond Hims & Hers. We're also continuing to invest in our core technical foundation, rebuilding core components so that updates to our customer flow, product fulfillment and catalog management are all modular. This will allow us to stand up new categories and markets in a fraction of the time it used to take us at a lower cost to us, which has historically translated into lower prices for our customers. This is just the beginning of how we are weaving AI into every step of the customer journey. And these early signals are why we are accelerating our investment in bringing this experience to life for all of our customers. In the coming months, we plan to add new AI talent to the team, continue to develop our existing talent and open an AI R&D lab in Menlo Park, where the team responsible for this innovation can work together in the heart of Silicon Valley. We expect this investment to pay for itself in short order. Importantly, we're not doing this to replace providers, but instead to elevate them. We feel strongly about always keeping clinicians in the loop and in charge of clinical decisions. At Hims & Hers, AI takes the routine work off clinicians' plate so they can spend their time on judgment, complexity, and the person in front of them. Our AI is bound by clinical protocols and guidelines developed by our medical experts, not the open Internet. And every AI interaction is traceable and auditable by design. We are taking this approach because we know AI models are becoming a commodity. And on their own, they are an incomplete part of a wider health experience. The only way to confidently build an AI infrastructure that can improve clinical outcomes is by tracking those outcomes. We believe we are the only company operating a closed loop that includes the intake, the treatment, the follow-up and the outcome at this scale. And the system learns from all of it. We believe this will have a transformative impact on our business as well. As we roll out this new experience to more customers, we expect we will improve the quality and depth of care accessed on the platform, which will, in turn, keep customers with us longer and bring new customers through the door. We believe this is something only we can do well. Our advantage is being an everyday partner to customers rather than just a chatbot that lives on their home screen. We walk alongside our customers throughout their entire journey, helping them find qualified providers and treatments that work. We've built an AI infrastructure that learns not just what works, but what works best for each person. And we have the scale to do it with millions of customers globally, creating an ongoing cycle of improvement. Better care produces better understanding and better understanding produces better care. This is how we are reshaping what the world thinks is possible in health, and we are only at the start. I am excited to come back next quarter with updates on the progress we will continue to make here. Thank you. Andrew Dudum: Thanks, Mo. I'd like to move us to the second area of focus for today, our growing ability to do more for the people who trust us with their health and why that matters now more than ever. We can support customers across a wide spectrum of needs from beginning to end because we've spent years building an infrastructure no one else has. It's why we've been able to and will continue to enter more complex categories with more tailored, accessible solutions. This is how we support the deep customer relationships you've heard me talk about so often. Our customers are increasingly trusting us with their care across more than one condition, and each additional need they bring to the platform strengthens their trust and extends our relationship with them. We believe we are in the best position to help millions of people get proactive about more complex health challenges that often go unseen or ignored. Testosterone is a powerful example. Most men experiencing low testosterone don't know it and they chalk up symptoms to fatigue or aging. We've designed an experience that changes that, at-home blood collection, longitudinal tracking and provider-guided treatment that adapts over time. And that experience is resonating. Only three quarters after launch, testosterone is scaling faster than any other specialty outside of weight loss. That gives us real confidence in our ability to expand not only into injectable and oral TRT before the end of this year, but also to extend this model across other specialties. That's part of why we've welcomed Dr. Anant Vinjamoori as our new Chief Medical Officer of Hims, joining Dr. Pat's incredible team of medical leaders who provide our clinical backbone. Dr. Vinjamoori has more than a decade of clinical experience in internal medicine, primary care and longevity, which will be a critical part of how we build and expand our offerings in categories like hormonal health, longevity medicine and peptide therapy. His participation at the recent PCAC hearing demonstrated just how valuable and trusted his voice is among industry leaders and regulators. And his expertise will be a fundamental part of how we accelerate into our next chapter. We've developed the infrastructure to succeed in higher complexity categories, over 1 million square feet of pharmacy and lab testing facilities, deep expertise in sterile compounding and a global reach. Our verticalization efforts are focused on delivering a better, higher-quality experience at a price no one else can match, which brings me to peptides. Moments like this where a category is surging in popularity while the market is struggling to find a safe, sustainable way to support it is where our scale, infrastructure and ecosystem thrive. We are currently developing a best-in-class peptides experience, including U.S.-manufactured products, clinically led guidance and ongoing blood testing. While we wait to hear the FDA's decision on the six peptides recommended at the last month's PCAC hearing, we've started validation and stability testing on APIs for those peptides developed in our Menlo Park facility. This will ensure we can bring them to the market with a safe, verified supply chain if the FDA decides to allow them for compounding. In the meantime, we plan to offer access to already allowed peptides with safe and well-established supply chains before the end of the year. This will include solutions like sermorelin, glutathione and NAD+. Finally, I'd like to discuss our third area of growth, which underpins everything we've already discussed today, our global scale. The promise of our platform started with what we could do for our customers in the U.S., where we have five specialties operating above a $100 million annual run rate. We are now bringing that comprehensive experience to customers across the world. In June, we became the leading global consumer health platform when we closed our acquisition of Eucalyptus. This was the largest acquisition in our company's history, and we now have three international markets outside of the U.S., also pacing above a $100 million annual run rate. This is the evolution of the company we always knew was possible. For the first time, a single platform can deliver a truly personal, accessible and effective weight management experience to customers around the world, whether home is Boston, Bristol or Byron Bay. We plan to make this true for customers in all of our specialties, and I can't wait to share more on our global plans with all of you in the coming quarters. We have the ability to create sticky relationships with millions of customers worldwide, and we believe that makes us invaluable to our industry partners. We have been thrilled with the strength of our relationship with Novo Nordisk. By working with the leading innovators in one of the highest-demand categories, we're expanding our addressable market, and we look forward to finding ways to work with other partners of the same caliber. We are now giving more people access to a world-class weight loss experience than any other digital platform in the world. This isn't just a sign of our scale. It's proof that health care is finally adopting the consumer-centric model that is already standard in industries like entertainment, travel and transportation. We are leading a transformation that removes the middle layers and ensures that access goes straight from innovators to consumers. We believe our growing scale and our increasing investment in our technology and infrastructure makes us structurally more efficient than anyone else in health care. We plan to continue to leverage our leadership position to deliver more value to customers at better prices. Put more plainly, we're playing offense, and we have the balance sheet and cost structure to sustain it in a way others cannot. This is the beginning of what our platform will deliver for both our customers and our industry partners. We believe we are not far from a future where all of us will be able to access preventative screening, the innovative medications we need to feel great and a care team supporting our progress, all for an affordable monthly price and tailored for the life we are actually living. I'll end by saying that this quarter has been about a single word: proof. Proof that you can build a world-class health experience at global scale and a reasonable price, proof that deeper customer relationships and a profitable business aren't in conflict; they strengthen each other. We are proving that Hims & Hers is the destination for the most comprehensive personal health experience in the industry. Nearly 3 million people rely on us daily, and that's a responsibility too big to meet with anything less than the best technology, infrastructure, treatments, providers and platform that we can provide. You've heard me say this before that we're building the future of health, but that future is closer than it's ever been, and it's because of the strides we are making on behalf of our customers every day. I'll now pass it over to Yemi to walk through the financials. Yemi Okupe: Thanks, Andrew. Today, I'll walk through progress made in the second quarter across our key growth levers as well as investments we are making to bring a better health experience to millions of consumers globally and capture the immense opportunity in front of us. In the second quarter, revenue grew nearly 40% year-over-year to more than $753 million. Expanded assortment, new geographic markets and an elevated consumer experience allowed us to add 300,000 net new subscribers and end the quarter with nearly 3 million subscribers on our platform. Domestic revenue growth accelerated to 16% year-over-year in the second quarter as U.S. operations generated $622 million of revenue. The pivot we made in March to expand the assortment of branded weight loss products on our platform was a key driver of the reaccelerating growth in the second quarter as more subscriber additions offset revenue recognition headwinds from the shift to a monthly cadence in branded weight loss offerings. Increasingly, we view specialties with large audiences such as weight loss and sexual health as strategically important beyond just their direct revenue contributions as they provide advantages such as, first, a meaningful expansion of the cross-sell opportunities across the platform as consumers often seek treatment for conditions beyond weight. Cross-sell potential increases further as we extend the reach of lab testing on our platform, which can surface underlying needs for treatment within specialties like low testosterone and cardiovascular health that subscribers may not know they have and would not otherwise act upon. What begins as weight loss treatment has the potential to become a pathway to providing access to care for a much broader range of subscriber needs. Second, it allows us to rapidly deepen the structured data set across our platform. The more subscribers we serve, the richer our data set becomes. This allows us to equip providers with tools to better match subscribers with effective treatments as well as design more customized subscriber tools for follow-up care. Each subscriber makes the platform smarter and better for the next. Finally, our infrastructure is built to continuously capture economies of scale. As our subscriber base grows, we realize efficiencies across our supply chain, including our provider network, pharmacy fulfillment and follow-up care operations. This reduces our cost to serve, expanding our ability to reach more subscribers at accessible price points. Strength in our domestic operations has provided us with the conviction to invest internationally and bring our value proposition to millions of consumers overseas. In the second quarter, international revenue increased over 17-fold year-over-year to $131 million. We welcomed the Eucalyptus team in June, deepening our presence in Europe and extending our reach to Australian and Japanese consumers. Eucalyptus contributed approximately $40 million of revenue in the second quarter, further accelerating our already strong existing international business that grew 13% quarter-over-quarter organically. Our revenue footprint continues to rapidly diversify across specialties and now also across geographies. Hers is on track to deliver north of $1 billion of revenue this year and new specialties such as low testosterone continue to serve as strong growth drivers for Hims. In fact, in the coming quarters, we expect testosterone will become our sixth U.S. specialty to reach a $100 million annual revenue run rate. Our growing international business makes this diversification even more robust. The U.K., Australia and Germany are each already generating more than $100 million in annualized revenue, with Canada also on track to join this group as well, as we scale our generic weight loss offering. We believe we have the infrastructure to improve the overall quality and efficiency of our platform as we continue to scale. 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. Our second quarter results reflect that discipline. Adjusted EBITDA in the quarter was $60 million, representing an 8% adjusted EBITDA margin. This represented a 1-point improvement quarter-over-quarter as operating leverage more than offset gross margin headwinds from the ongoing mix shift toward weight loss and the accelerating revenue contributions from our international business. These results exclude approximately $81 million of nonrecurring 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. Let me briefly address that last item directly. As disclosed in our filings, following nearly 3 years of cooperation throughout the FTC's investigation and several months of good faith settlement negotiations, the FTC filed a complaint on July 29. Ultimately, 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. These onetime costs primarily impacted G&A, operations and support costs during the quarter. Unless otherwise noted, the remainder of my commentary today reflects our results excluding these costs. Gross margins in the second quarter were 64%, down approximately 6 points quarter-over-quarter on an adjusted basis. This compression reflects deliberate strategic action to scale the specialties and markets that we believe will drive the long-term value of our platform. We do not believe anyone else in consumer health has the scale, infrastructure and balance sheet to invest in this way. 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. What matters to us is that the underlying unit economics of the platform remains strong and that each of these investments expands the base of subscribers we can serve and positions us to unlock efficiencies across our platform over time. In recent quarters, a meaningful portion of our investment has gone into technology and G&A as we've leaned into the engineering and AI organizations and the leadership talent required to deliver a first-of-its-kind health experience to consumers around the world. That investment will continue, but we were encouraged to see modest sequential leverage across both lines this quarter, which we believe offer an early signal that investments here can be meaningfully accretive over time. Those investments are also beginning to generate cost savings elsewhere in the business. Operations and support delivered three points of sequential leverage in the second quarter. This is a reflection of the improving efficiencies we are driving across our pharmacy operations as we increase throughput and early cost savings from the AI initiatives we have deployed across customer support. As Mo mentioned, successful pilots have demonstrated that AI has the capacity to drive a 50% reduction in nonclinical tasks handled by our support teams. Early signs in the same pilot are also demonstrating stronger engagement and lower cancellations for the participating subscribers. As these capabilities mature, we expect the overall subscriber experience to improve and our cost to serve to decline. Finally, we continue to increase efficiency in our marketing spend as we scale. Marketing as a percentage of revenue improved 5 points year-over-year and 2 points quarter-over-quarter to 34%. Many of the drivers remain consistent with past quarters, strengthening retention, improving rates of cross-sell accruing organically across the platform and years of brand investment, helping to lift customer acquisition in lower-cost channels. With that said, we also see two new dynamics that are presenting additional opportunities. First, our collaborations with pharmaceutical innovators like Novo Nordisk are resulting in real marketing tailwinds. We've seen groundbreaking treatments draw enormous consumer attention to categories like weight loss. And when people go looking for a trusted, approachable place to start, they increasingly start with Hims & Hers. We built a platform that makes health simple, personal and easy to stay with, and that is allowing us to turn consumer curiosity into new care relationships in an increasingly efficient way. Additionally, our expanded international presence unlocks the potential for larger global brand moments while also driving far greater optionality in where we can deploy capital to drive awareness of our platform. We believe we are in one of the most exciting stages in our history. It is a stage that demands we lean into investment, act decisively on the right M&A opportunities and attract the caliber of talent that enables us to capitalize on the significant growth runway in front of us. Periodically, we expect this long-term oriented mindset will impact our GAAP results, and that was the case in the second quarter. GAAP net income was a loss of $86 million, which was impacted by the previously mentioned nonrecurring acquisition, restructuring and legal costs. Over the last 12 months, our platform generated over $260 million of operating cash flow. That's inclusive of second quarter results where operating cash flow momentum took a pause due to the increased working capital demands associated with our rapidly expanding branded weight loss offering. During the quarter, operating cash flow was negative $36 million and free cash flow was negative $68 million. Since the end of the first quarter, we successfully completed two actions that we believe will help ensure our balance sheet will not limit our ability to capture the growth opportunities in front of us. 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 of over $400 million, further reinforcing our balance sheet. Our expectation is to resume free cash flow generation in the second half of the year. After accounting for the approximately $225 million upfront payment made at the closing of Eucalyptus, we ended the quarter with more than $840 million of cash and short-term investments. We also have $225 million remaining on our share repurchase program, which continues to give us the ability to act when we believe the market value of our stock disconnects from its intrinsic value. Taken together, our balance sheet, our access to efficient sources of liquidity and the cash generation of our domestic business give us the flexibility to fund an accelerating platform while continuing to invest with conviction. Our investments will continue to orient around our core strategic growth levers, which we believe will solidify the pathway of 2030 financial ambitions. Utilizing technology to elevate the quality of care for our users, expanding into new specialties, broadening access to personalized care across specialties, leveraging partnerships to become a best-in-class curator of health services and expanding internationally. I'll highlight a few of these where we expect heavier near-term investment. First, we are accelerating investment in our technology and AI capabilities. AI investments on our platform are driving a meaningfully better consumer experience that is resulting in a reduction in cancellations. Subscribers are able to get faster answers to questions alongside a more consistent and personalized experience. Early signals are already demonstrating AI's ability to improve the efficiency with which we serve our subscribers. We expect these benefits to compound with time, unlocking a powerful combination of stronger revenue growth and cost savings. Our expectation is that the AI investments will pay back within 12 to 18 months. More importantly, we believe these capabilities, combined with our scale, provide structural advantages to invest in ways that others cannot across key growth areas like weight loss and international markets. Starting with weight loss, we will deploy a portion of efficiency improvements from AI into making our platform the most accessible place for consumers to begin their weight loss journey. The success across our AI efforts continues. Our expectation is that we will unlock more value for our weight loss subscribers by the end of the year in the form of lower prices and/or additional tools. This is a playbook we know well. In our sexual health and hair loss specialties scale allowed us to steadily lower prices for our customers, which expanded our addressable market, strengthened retention and ultimately drove stronger LTVs and margin expansion. We see a similar opportunity taking shape in weight loss, where our growing scale, improving operational efficiencies and AI-supported care model enable us to make treatment more affordable for more people. Delivering more for less is how we extend the advantages of our platform, and we believe few in consumer health are positioned to do the same. We also expect to redeploy a portion of efficiencies to accelerate growth within our international business. We have the necessary talent to meaningfully evolve the way consumers access their health and wellness needs across Australia, Japan, Canada, Germany and the U.K. And we expect to invest aggressively in these markets as we build category leadership. Importantly, adoption of weight loss solutions across many of these markets still lags the U.S. meaningfully and the same investments to strengthen our leadership position can accelerate growth of the category itself, expanding the market for us and for our industry partners. We expect these markets to emerge as meaningful profit centers as they scale. Lastly, we will continue investing in the operational capabilities and clinical oversight required to bring new offerings to the platform responsibly, including higher complexity offerings like injectable testosterone in the near term and peptide therapies if the regulatory landscape allows. With that, I will walk through outlook for the remainder of the year. In the third quarter, we're anticipating revenue in the range of $880 million to $900 million, representing a year-over-year increase of approximately 47% to 50%. We expect adjusted EBITDA to be between $75 million to $95 million, representing an adjusted EBITDA margin of 10% at the midpoint of both ranges. For the full year, we are raising our 2026 revenue outlook to $3.1 billion to $3.3 billion, representing a year-over-year increase of 32% to 41%. It is our expectation that 2026 adjusted EBITDA will be between $275 million and $325 million. These adjusted EBITDA and revenue ranges imply an adjusted EBITDA margin of 9% at the midpoint of both ranges. To help contextualize our outlook, I will highlight a few points. First, we expect the gross margin dynamics we saw in the second quarter to persist through the second half as branded weight loss offerings and international revenue continue to grow as the share of our business. As I discussed earlier, this mix shift reflects a deliberate decision to scale the specialties and markets we believe will drive the long-term value of the platform. Second, 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. reaccelerates. At the same time, our guidance is designed to preserve the flexibility to lean further into the investment priorities outlined today as opportunities materialize. Finally, 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 platform is delivering a combination of value to consumers that we believe cannot be found anywhere else in health care. We are addressing more health needs for our subscribers through an experience that becomes more personal with every interaction at prices that become more accessible as we scale. That combination is why more people are choosing our platform than ever before, and why they are staying longer entrusting us with more of their health. What's most exciting is that now this is a truly global story. The re-acceleration underway in our U.S. business is paired with leadership positions across key international markets, giving us more consumers to serve, more markets to scale and more ways to compound our advantages than at any point in our history. All of which reinforce our confidence in achieving our 2030 ambitions of 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 employees around the world. I'd 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 2 questions from our retail community. William Newby: Thanks, Yemi. And thank you to everyone who sent questions over the weekend. Our first question comes from the Hims & Hers community who would like to better understand how we're approaching the developing opportunity in peptides. They ask, following the July PCAC recommendations for the 503A peptide list, can you provide more detail on your go-to-market time line once final FDA guidance is provided? Are you compliance ready to launch within weeks given your existing California facility, or are there additional buildup steps that pushed this into 2027? And do you still intend to let others go first, or has the July recommendation change that calculus? Andrew Dudum: Yes. Great question. Thank you for that. As we said in the past, I'm extremely excited about this category, holistically, the peptide and wellness category and was very excited to see 6 of the 7 go through successfully with the PCAC meeting at the FDA a couple of weeks back. To your question on timing, we've made incredible progress in the last couple of quarters on the clinical guidelines as well as the supply chain that gives me confidence that if and when the FDA does decide to move these peptides to the Category 1 list, we'll be able to move extremely quickly. Specifically, we brought on Dr. Anant Vinjamoori as our Chief Medical Officer on the Hims side of the house, who is an expert across hormonal therapy, longevity and peptide therapy. He's been building out the clinical protocols, the guardrails, the dosing regimens and the provider training. In addition, in Menlo Park in our API facility, where we have committed to actually manufacture the raw APIs in the U.S., which we think is extremely rare and likely the only company capable of delivering that, we are in the process of actually putting on BPC-157 on the stability and validation testing to be ready shortly and following course with the remainder. So in the meantime, as we await FDA decision-making and rule making, we will be moving forward with the wellness and peptide category with a broader set of offerings. These include things like sermorelin, glutathione, NAD+ and other wellness therapies and injections, and we expect hopefully that to come out by the end of this year. William Newby: Great. Thanks, Andrew. The next question comes from Tom T., who asked about the investments we're making in AI and our longer-term vision for kind of what the Hims & Hers customers experience can look like. He asked, between labs, potential wearable partnerships and the treatment and outcome data you're collecting for millions of customers, is there a plan to bring all of that together so a customer can eventually see something like a real-time health score, where the AI is connecting those data points, flagging things early and recommending next steps before they become actual problems, how far away do you think something like that is? And is that something the team is actively building toward today? Andrew Dudum: Absolutely. The short answer to that question is yes. We are also hiring. So you're able to piece a lot of that together, so please apply. But the vision really is to be able to bring together all of the elements with 360 person's health, whether that's wearable data, our own devices, external devices, lab testing data, our own labs, external labs, all the way to preventative screening and genetics to be able to have an ecosystem of doctors, specialists, coaches, agents, pharmacists, on call for you, 24/7 actively monitoring how best we can assist you with living the healthiest and best life. I think this sets up very well for a natural membership offering for Hims & Hers, as you can imagine, coming out in the coming year or 2. I think this also sets up a really powerful freemium offering for Hims & Hers, where patients could just have the opportunity to come leverage these tools at Hims & Hers in a free manner to just get benefits of the 360 view of their health, a unified platform with an ecosystem, all powered by AI on the bottom layer of actual doctors, actual trained nutritionalists as well as agents and care pilots. And so when you really step back, like what is this that we're building is currently available. This is what most would consider concierge care today. And it costs anywhere from $50,000 to $150,000 annually. I think in the simplest way, my vision is to make that same level of proactive, preventative, always-on care affordable to everybody globally for a price that is universally accessible. Operator: [Operator Instructions] Your first question comes from the line of Maria Ripps with Canaccord. Maria Ripps: I wanted to ask about the Novo partnership, which clearly has been very successful on the volume side. So now that the branded cohorts, a couple of quarters kind of in, a couple of quarters mature, how does the retention and engagement compared to what you saw historically across other products? And then how are you thinking about sort of deepening the Novo relationship from here? Andrew Dudum: Maybe me I can speak a little bit about the relationship generally and opportunities, and then you can dive into the retention and profiles. Maria, at a high level, we're extremely excited by the ongoing relationship with Novo Nordisk, top down from Mike as CEO, the team has been incredibly collaborative in thinking through ways in which we can broaden access to patients in the U.S. The Wegovy pill has had a staggering launch. And I think we are the largest or one of the largest players that are helping people access that pill, which has really opened up the floodgates of people who had injection fears, price point fears and concerns. And so very strong relationship domestically. We also have extremely strong relationships internationally and are adopting many of those relationships from our acquisition with Eucalyptus. So this is across Germany, across the U.K., where we were actually able to help generate tens of thousands of individuals on a wait list for the Wegovy pill within just a couple of days in some of these markets as they were getting ready to prepare the launch. I think there's an increasing amount of collaboration around key strategic markets that are valuable to both businesses and thinking about how to collaborate into expanding the market and getting people more access I think there is increasing ability to share data with regard to what's working for patients, adherence benefits, what we're seeing with regard to side effects or how to mitigate that in different dosing regimens. So I think there's a really powerful flywheel here when you start getting the leading drug manufacturers actually closer to the data on the ground of the consumers in a way that can not only help when it comes to commercializing therapies but also thinking through how we bring new therapies to market. And so I think there's a growing set of opportunities that I think both of the teams are very excited by. Yemi Okupe: And to hit the second part of your question, Maria. Really, I think we're seeing retention with our expectations. Part of the beat in Q2 or large part of the beat in Q2 was a result of really the weight category amongst others being much stronger than we thought. As we saw that, that's what gave us conviction to elevate the guidance for the rest of the year. Perhaps what's even more exciting for us is that we see the experience continue to get better. And in the prepared remarks, we spoke around how with a more immersive experience through the next evolution of the app and some of the AI tools as well as physical tools like the scale of the consumers are getting, that enables more connectivity with their providers. And ultimately, we're already seeing signs of lower cancellation rates for the cohorts of users that are receiving that. And as we look to continue invest in the experience, and we see opportunities as we gain more efficiencies to make price points more affordable, we see an already solid retention rate getting stronger and stronger. Operator: Your next question comes from the line of Ryan MacDonald with Needham. Ryan MacDonald: Congrats on a nice quarter. Andrew, as we think about, as you're integrating Eucalyptus now and the international acquisitions you've made, can you just talk about what some of the key specialty areas that you're seeing the most success with in those international markets, and where you see the potential low-hanging fruit to expand assortment in some of those markets, particularly for eucalyptus that are already quite strong within the U.S. market? Andrew Dudum: Yes. Great question, Ryan. Some of the -- specifically Eucalyptus has done a wonderful job building real dominance in the U.K., Australia and Germany and newly in Japan and Canada in the weight loss category. So they are serving that demographic very well, one of the leading, if not the leading providers in those markets and in aggregate, the leading digital health providers in those markets. where we think there's real opportunity is actually bringing some of the core specialties that the Hims & Hers business have gotten very good at here domestically overseas. And so these include things like testosterone replacement therapy, menopause therapy for women. This is basic assortment in the dermatology categories such as men's and women's hair, men's and women's sexual health and reproductive health as well as categories like peptides in some of these markets where actually there are different regulatory opportunities to expand and allow patients to have some of these more cutting-edge longevity therapies. And so I would say, at the very high level, there is some very low-hanging fruit in bringing some of the best and highest performing and even some of the fastest growing like testosterone categories that are here domestic into at least 5 or 6 markets overseas with the engine and the go-to-market commercial strategy that the Eucalyptus team is already well equipped to deliver on. Ryan MacDonald: Appreciate that. And then as a follow-up, maybe just a clarifying point within the peptides. I know you talked about -- addressed it a little bit in the question earlier and all the preparations going on there. But in terms of when you could -- or I guess maybe the catalyst you're waiting for, would you be waiting for sort of the full formal FDA guidance that's in the register that can take sort of the 6- to 12-month process to start selling those 6 of the 7? Or does it simply sort of the proposed rule-making process kicking off with the commenting period, et cetera, sort of act as more of the signal sort of a nearer-term opportunity for you to start selling those 6 approved peptide? Andrew Dudum: Yes. Thanks, Ryan, for the clarification. Our operating model today is that we are waiting on full and final rule making from the FDA. And so that could come in a lot of different forms and factors, that could come on different time lines. But we think it's really important for them to complete that process before we bring this to market. Operator: Your next question comes from the line of Mark Mahaney with Evercore. Mark Stephen Mahaney: Can I throw in 2 questions, please. Just on the Eucalyptus contribution in the back half of the year. First, to the EBITDA kind of shading down or cut in the full year guidance, I know you mentioned investing in AI and in further international expansion. But is Eucalyptus dilution part of that kind of shade down in the EBITDA growth for the full year. And then just on the U.S. acceleration that you saw in Q2 and you talked about -- I think it's implied in your guidance for the back half of the year. And I think that's largely due to the kind of the broadening of the weight loss offerings that you have. Could you -- would you want to help us quantify like how much more acceleration we could expect in the back half of the year? Yemi Okupe: Yes. Thanks for the question, Mark. Let me take the second question and that it effectively, the catalyst behind the first. So we are expecting a great acceleration on both revenue and EBITDA in the U.S. in the back half of the year. Really, one of the driving forces behind that are a few things. The first is, just given the switch, particularly on the branded products to a monthly cadence as you start to see more cohort stack due to greater tenure of the offering on the platform. That inherently results in both more revenue and EBITDA. So we would expect those effects to start to compound in both Q3 as well as Q4. You already saw that to some degree with the roughly a 12-point acceleration in the first quarter. I think to compound that as the experience gets better with some of the elements that Andrew mentioned as well as Mo mentioned in the prepared remarks around the AI and some of the tools that subscribers will be equipped with, inevitably, our view is that the ability for retention to get stronger will increases, which will drive that acceleration further. But I think what we're seeing is as we see efficiencies across the portfolio, both in the U.S. and particularly some of the early savings that we're receiving from AI, that will be reinvested into really 2 areas. The first is taking some of those savings and reinvesting it into a more immersive weight experience that passes more value to the consumers. That can be in the form of making the price points more accessible. It can also be in the form of more tools and just thinking through how to increase the stickiness on the platform. The other area where we're prepared to invest, we see an ability to secure leadership across many areas as we look at particularly attractive markets in Western Europe, like the U.K., Germany, as well as Canada, having the strength of the U.S. and domestic portfolio to really lean in there something that's reflected in our guidance. So our guidance is the flexibility to make price points more accessible here domestically, but also really to, as we see opportunities to invest in ways that adhere to our capital allocation standards of the 1 year or less breakeven period. We will do those particularly across international markets. Operator: Your next question comes from the line of Craig Hettenbach with Morgan Stanley. Craig Hettenbach: On the push to drive AI adoption, anything unique on the Hers side in terms of starting there and then the rough timing of when you'd expect to see that on the Hims side as well? Andrew Dudum: Yes. Thanks, Craig, for the question. We're incredibly excited by this, as we shared in the prepared remarks. I think seeing on the Hers side, meaningful acceleration in engagement. Patients are interacting and messaging with their care teams 3x as much with the new care operating plan and operating system that we've rolled out. And at the same time, the actual tasks for humans has dropped 50% when you're talking about nonclinical tasks. And so this really rare combination of extreme engagement that we know has long-term trickle-down benefits when it comes to cancellation reductions and retention as well as very real cost savings that, to Yemi's point, we can immediately redeploy into more aggressive pricing and market capture opportunities in the weight category as well as the international category. We started with the women's weight loss business because that is one of the highest engagement parts of the business. It's a category that there are a tremendous amount of questions. There's an incredible complexity with regard to injection fears, dosing regimens, side effect mitigation. It is just -- it is probably the most complex category we operate in today. And so building the operating system and kind of this AI platform that can connect to pharmacists, a doctor, care coaches, agents all together in that environment, we thought was the best place to start. We are quickly rolling this out to other markets. We plan to bring, as we've shared some of the other therapies and peptides to market that are on -- that are currently already on the Category 1 list as well as expanding the TRT offering with injection testosterone as well as oral testosterone. And the plan is to be able to have this new experience powered by AI for some of those new category launches on the Hims side of the business as those come out in the next couple of quarters. Craig Hettenbach: That's helpful. And then just a quick follow-up, Andrew, as you kind of step on the gas here with new product categories. You've talked about all the technology capabilities in AI as well as kind of the reach and capacity. How are you prioritizing these new categories? Is there anything in terms of like thresholds or things that you look at from a market perspective that kind of greenlight some of these new categories versus others that maybe you might ultimately take more time with the launch? Andrew Dudum: Yes, it's a great question, Craig. We're at a scale now with nearly 3 million subs globally, where the patients do a fantastic job of telling us where the business needs and the clinical needs exist. And so really core to this strategy was the lab testing infrastructure that we acquired and have rolled out in the last few quarters, that will be bundled with a lot of these categories that we were just talking about and essentially free with your care. And what we've seen from that adoption is exactly where we need to be going. We're going towards metabolic health with broader set assortment on the GLP-1 side. We're going towards hormonal health because we're seeing both on men and women massive overlap between those patient populations or going towards sleep and recovery and longevity focus because that's what people are telling our providers that they're interested in or struggling with. And so we're at this really powerful point in the flywheel where the scale of the business, the high engagements we have with patients on singular categories, really feeds and accelerates our understanding of new categories or our understanding of the cross-sell potential of those categories and ultimately what the overlap will be. And so I think over time, that assortment and that breadth is a massive competitive advantage. As we shared in the remarks, with testosterone, we're approaching 6 categories, growing over $100 million run rate. I think that assortment is going to continue to accelerate the pace at which we can bring new things to market and the pace at which they hit that $100 million run rate threshold, just because they will be more informed by existing patient populations with much more clear targeting and the ability to bridge patients to more comprehensive care. Operator: Your next question comes from the line of Eric Percher with Nephron Research. Eric Percher: Andrew, I'd like to follow up on that comment about 3 million subs. I'd be interested to hear your perspective on the recent growth, and how much of that may be a bolus that was waiting versus the ability to maintain it. And then Yemi, I also want to check to see, does that growth that we saw quarter-over-quarter include Eucalyptus subs as well in a meaningful fashion? Andrew Dudum: Yes. Great question, Eric. I'll let Yemi speak to Eucalyptus contribution. I think a big part of this came from the pivot in the business to expand the offerings on the weight loss side to bring some of the new therapies onto the platform. There's obviously just a tremendous amount of demand for these therapies. And I think building the business model in such a manner that allows us to have very close and mutually beneficial relationships with large drug companies and the large biotech companies is going to continue to allow for this type of accelerated growth as new therapies come to market where consumers have excitement, and there's great business potential. At the same time, I think there's been also a re-acceleration across categories. Most notably on the men's hormonal side of the business within just a couple of -- within a couple of quarters, has become the fastest growing business outside of weight loss and quickly, we'll be eclipsing that $100 million threshold. And so we're continuing to lean in on that category, expand assortment in that category, bring that overseas. But generally, I think it's a nice combination of the business model, expanding great options on the metabolic side of the house as well as the traditional core Hims business is reaccelerating as we put more focus into some of these new initiatives. Yemi Okupe: I am going to hit the second part of your question, Eric. The short answer is Eucalyptus, top and bottom revenue is included in the second quarter results. On the revenue side, it's roughly $40 million coming from Eucalyptus, overall and material portion behind the guide is really just the accelerating domestic revenue. The assortment in the weight category definitely has been a catalyst towards us being able to accelerate the trajectory on both revenue and subs there, but then also on the Hims side, as we see continued success with things like the low testosterone offering and some of our other newer specialties, as those scale, we continue to see the domestic business thrive which provides more dry powder to invest in the international markets. Operator: Your next question comes from the line of Glen Santangelo with Barclays. Glen Santangelo: Two quick ones for me. Yemi, I just want to follow up on Eric's Eucalyptus question. In the past, you told us that Eucalyptus was currently generating about a breakeven margin. Is that still the case? And any help there you can give us? And then my follow-up is really around longer-term margins. If you look at your 3Q guide, the implied margins in the fourth quarter, I think you're calling for a 12% EBITDA margins or 12% at the midpoint. Is that math correct? And is it reasonable to use that as sort of a jump-off point when we think about fiscal '27 appreciating that's still a few months away. And I appreciate you don't want to say much about fiscal '27. But I'm just trying to think about the margin trajectory given you're sort of confirming that 20% margin in 2030. Any sort of insights you can give us to how we should think about that would be helpful. Yemi Okupe: Yes. Thanks for the question, Glen. To hit the first part of your question, for Eucalyptus, I think that roughly they were running at breakeven to moderate losses. I think as we see continued strength in the U.S., the international markets are something that we're prepared to lean into in a thoughtful way. Collectively, we do expect those to be near or at breakeven. But as opportunities permit, I think that's one of the beautiful things about the domestic and -- the best domestic acceleration that we're seeing that provides the opportunity to invest there. On your second question around just the longer-term margin profile, not necessarily prepared to speak to 2027 yet, but we're really just kind of reorient towards what does our philosophy look like for the next couple of quarters as we continue to lean in and invest. And really, that's towards an eye forward, first and foremost, strong free cash flow generation as well as strong EBITDA dollar generation on an aggregate basis. And so you see that the stacking of the cohorts, particularly in the weight loss category that we spoke around before as well as some of the benefits coming from the ramp in newer specialties that Andrew mentioned, those things give us conviction to be able to invest aggressively but still drive the strong cash flow generation in EBITDA dollars. Operator: We have reached the end of the Q&A session. This concludes today's call. Thank you for attending. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Hims & Hers Health. The Motley Fool has a disclosure policy. Hims (HIMS) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Hims & Hers Health’s second quarter results were driven by strong subscriber growth and a ramp-up in its branded weight loss offerings, yet the market reacted negatively, with shares declining over 5%. Management pointed to accelerated customer acquisition, particularly from new launches in AI-powered services and expanded product categories. CEO Andrew Dudum stressed that the company’s “investment in AI and technology is delivering a health experience that we believe no other company can replicate.” The quarter also included significant investments in infrastructure, entry into new specialties like testosterone therapy, and the largest acquisition in company history, Eucalyptus. However, rising operating expenses and ongoing litigation-related costs were highlighted as key pressures. Is now the time to buy HIMS? Find out in our full research report (it’s free). Revenue: $753.2 million vs analyst estimates of $699 million (38.2% year-on-year growth, 7.8% beat) Adjusted EPS: -$0.09 vs analyst estimates of $0.11 (significant miss) Adjusted EBITDA: $60.32 million vs analyst estimates of $47.26 million (8% margin, 27.6% beat) The company lifted its revenue guidance for the full year to $3.2 billion at the midpoint from $2.9 billion, a 10.3% increase EBITDA guidance for the full year is $300 million at the midpoint, above analyst estimates of $291.7 million Operating Margin: -12.9%, down from 4.9% in the same quarter last year Customers: 2.89 million, up from 2.58 million in the previous quarter Market Capitalization: $6.57 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Maria Ripps (Canaccord): asked about the Novo Nordisk partnership’s impact on retention and engagement. CEO Andrew Dudum described a strong, mutually beneficial relationship, while CFO Yemi Okupe noted that immersive experiences are already reducing cancellation rates. Ryan MacDonald (Needham): inquired about Eucalyptus integration and specialty expansion abroad. Dudum emphasized the ability to bring core U.S. specialties to international markets and noted regulatory opportunities in peptides and longevity therapies. Craig Hettenbach (Morgan Stanley): asked about the sequencing and prioritization of new AI features across product lines. Dudum explained that Hers’ weight loss was the initial focus due to complexity, with plans to extend the AI-native experience to Hims’ offerings in coming quarters. Eric Percher (Nephron Research): questioned the sustainability of rapid subscriber growth. Dudum attributed growth to new weight loss therapies and re-acceleration in core categories, while Okupe confirmed Eucalyptus contributed to results but domestic growth remained the primary driver. Glen Santangelo (Barclays): sought clarity on Eucalyptus’ margin impact and long-term guidance. Okupe said Eucalyptus is currently at or near breakeven and that long-term focus remains on free cash flow and EBITDA generation as they invest for growth. Looking ahead, the StockStory team will be watching (1) whether AI-enabled engagement and retention rates improve across all customer segments, (2) the pace and profitability of international expansion following the Eucalyptus acquisition, and (3) the regulatory progress on peptide therapies and advanced hormonal treatments. The effectiveness of cross-sell strategies and the integration of new specialties into the global platform will also be key areas for ongoing analysis. Hims & Hers Health currently trades at $28.19, down from $31.77 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Citi lowered its price target on the stock to $33 from $35 and maintained a ‘Neutral’ rating, according to The Fly. Hims reported a 40% jump in second-quarter revenue to $753 million, beating analysts’ estimates of $730.1 million, according to Fiscal.ai. TD Cowen said investments in international expansion, branded weight-loss offerings, artificial intelligence, and new therapies are pressuring near-term margins. Hims & Hers Health (HIMS) was in focus on Tuesday following a wave of Wall Street action after its second-quarter results, with Citi warning that the company faces heightened execution risk as its full-year outlook requires a “hefty” increase in fourth-quarter earnings before interest, tax, depreciation and amortization. Citi analyst Daniel Grosslight lowered his price target on Hims & Hers to $33 from $35 and maintained a ‘Neutral’ rating, according to The Fly. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox At the time of writing, HIMS shares were down 0.8%. On Monday, the telehealth firm reported a 40% jump in Q2 revenue to $753 million, beating analysts’ estimates of $730.1 million, according to Fiscal.ai. The topline increase was driven by the addition of about 300,000 subscribers, bringing its global subscriber base close to nearly 2.9 million. However, loss per share came in at $0.37 per share, significantly wider than the consensus estimates of a loss of $0.05 per share. Adjusted EBITDA fell to $60.3 million from $82.2 million a year earlier, while free cash flow was negative $68 million, though Hims expects a reversal in the second half of the year. Hims raised its 2026 revenue outlook to between $3.1 billion and $3.3 billion, up from its earlier guidance of $2.8 billion to $3 billion. Hims expects adjusted EBITDA of $275 million to $325 million, reflecting a margin of 9% to 10%, slightly lower than its previous estimates. TD Cowen said investments in international expansion, branded weight-loss offerings, artificial intelligence, and new therapies are pressuring near-term margins. It raised the price target to $30 from $25 and kept a ‘Hold’ rating BofA called the second quarter “good,” but described the updated guidance as mixed. While it raised HIMS price target to $32 from $30, it maintained a ‘Neutral’ rating. Morgan Stanley lifted its target to $28 from $21 but kept an ‘Equal Weight’ rating, adding that the earnings report offered “plenty for both bulls and bears.” The stock has a consensus 12-month price target of $30.38. Eleven of the 15 analysts covering the stock have a ‘Hold’ rating, three have a ‘Buy’ rating, while one holds a ‘Sell' rating according to Koyfin data. Retail sentiment surrounding HIMS on Stocktwits remained in the ‘bullish’ zone over the past 24 hours, amid ‘high’ message volumes. One user called the stock a “huge bargain.” Another user said the revenue beat is the most critical element. HIMS shares have dropped a little over 5% so far in 2026. Also read: Tesla Faces 20,000-Vehicle Recall Just Weeks After Regulatory Probe On Suspension Failure — Retail Flags Asymmetric Risk In Near Term For updates and corrections, email newsroom[at]stocktwits[dot]com. Arnab Paul has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: Why Did ABNB, TGT, ZETA Stocks Surge To 52-Week Highs Today? CoreWeave’s Record Q2 Supercharges Nebius Stock Ahead Of Earnings — What Does Wall Street Expect Amid Cloud Boom? SpaceX Supplier VELO Stock Jumps 16% Overnight: CEO Says Company Is Entering 'Important Phase Of Growth'

Hims & Hers Health, Inc. HIMS reported quarterly adjusted loss per share of 10 cents in second-quarter 2026, against the year-ago period’s adjusted earnings per share (EPS) of 17 cents. The metric was wider than the Zacks Consensus Estimate of loss per share of 7 cents. GAAP loss per share for the quarter was 37 cents against the year-ago period’s EPS of 17 cents. Hims & Hers registered revenues of $753.2 million in the second quarter, up 38.2% year over year. The figure surpassed the Zacks Consensus Estimate by 9.1%. Solid revenues from both geographic segments drove the top line. Shares of this company lost nearly 6.8% in today’s pre-market trading. In the second quarter of 2026, revenues in the United States increased 15.7% year over year to $621.8 million. Rest of the World revenues grossed $131.4 million, up from the year-ago quarter’s $7.5 million. During the reported quarter, subscribers were 2.9 million, up 18.5% year over year. Monthly online revenue per average subscriber increased 21.1% year over year to $92 in the second quarter. Per management, the uptick was primarily driven by changes in product mix, including uptake of HIMS’ weight loss offerings. Hims & Hers Health, Inc. price-consensus-eps-surprise-chart | Hims & Hers Health, Inc. Quote In the second quarter of 2026, Hims & Hers’ gross profit increased 15.5% year over year to $480.8 million. However, the gross margin contracted 1256 basis points to 63.8%. Marketing expenses increased 20.4% year over year to $262.2 million, while technology and development expenses jumped 45.1% year over year to $54.9 million. General and administrative expenses surged 145.8% year over year to $165.4 million, while operations and support expenses increased 43.6% year over year to $95.5 million. Operating expenses of $577.9 million increased 48.4% year over year. Operating loss totaled $97.2 million against the year-ago quarter’s operating profit of $26.7 million. Hims & Hers exited second-quarter 2026 with cash and cash equivalents and short-term investments of $841 million compared with $750.9 million at the end of first-quarter 2026. Cumulative net cash provided by operating activities at the end of second-quarter 2026 was $53.4 million compared with $89.9 million a year ago. Hims & Hers has provided its revenue outlook for the third quarter and raised the same for 2026. The company projects revenues for the third quarter of 2026 in the range of $880 million to $900 million, reflecting an uptick of 47%-50% year over year. The Zacks Consensus Estimate is pegged at $778.6 million. For the full year, HIMS now projects revenues in the range of $3.1 billion to $3.3 billion (representing growth of 32%-41% from 2025 levels), up from the prior outlook of $2.8 billion to $3 billion (representing growth of 19%-28% from 2025 levels). The Zacks Consensus Estimate is pegged at $2.91 billion. Hims & Hers exited the second quarter of 2026 with better-than-expected revenues. The company recorded robust improvement in the top line and geographic revenues in the quarter. The increase in subscribers and monthly online revenue per average subscriber during the quarter was encouraging. Per management, HIMS’ geographic results were strengthened by the close of the Eucalyptus acquisition in June. Management expects its domestic business to continue accelerating through the second half of the year. The company is optimistic about the combination of this momentum with the meaningful efficiencies being generated from Hims & Hers’ investments in AI and technology. These raise our optimism about the stock. However, Hims & Hers’ wider-than-expected loss per share and dismal bottom-line results in the quarter were disappointing. The contraction of the gross margin during the quarter does not bode well for the stock. Hims & Hers currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space that have announced quarterly results are BrightSpring Health Services, Inc. BTSG, Quest Diagnostics Incorporated DGX and Avantor, Inc. AVTR. BrightSpring, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2026 adjusted EPS of 45 cents, beating the Zacks Consensus Estimate by 21.6%. Revenues of $3.87 billion outpaced the consensus mark by 6.1%. You can see the complete list of today’s Zacks #1 Rank stocks here. BrightSpring has a long-term estimated growth rate of 46%. BTSG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 16.1%. Quest Diagnostics reported second-quarter 2026 adjusted EPS of $3.12, beating the Zacks Consensus Estimate by 11%. Revenues of $3.04 billion surpassed the Zacks Consensus Estimate by 2.2%. It currently carries a Zacks Rank #2 (Buy). Quest Diagnostics has a long-term estimated growth rate of 9.7%. DGX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%. Avantor reported second-quarter 2026 adjusted EPS of 21 cents, beating the Zacks Consensus Estimate by 10.5%. Revenues of $1.69 billion surpassed the Zacks Consensus Estimate by 4.2%. It currently carries a Zacks Rank #2. Avantor has a long-term estimated growth rate of 1.6%. AVTR’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hims & Hers Health, Inc. (HIMS) : Free Stock Analysis Report Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report Avantor, Inc. (AVTR) : Free Stock Analysis Report BrightSpring Health Services, Inc. (BTSG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). 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Revenue of approximately $753 million, up 38% year-over-year in Q2 2026 Subscribers grew to nearly 2.9 million, up 19% year-over-year in Q2 2026 Raises full year 2026 revenue guidance to a range of $3.1 billion to $3.3 billion and updates Adjusted EBITDA guidance to a range of $275 million to $325 million SAN FRANCISCO, August 10, 2026--(BUSINESS WIRE)--Hims & Hers Health, Inc. ("Hims & Hers" or the "Company", NYSE: HIMS), the leading global health and wellness platform, today announced financial results for the second quarter ended June 30, 2026. "Hims & Hers is delivering a world-class health experience at a global scale and a reasonable price for the nearly 3 million people who rely on us for access to care. We’re proving, quarter after quarter, that helping people feel great and delivering strong results aren’t mutually exclusive," said Andrew Dudum, co-founder and CEO. "We have never been better positioned to move faster or go further than we are today. As we rebuild the consumer health experience from the ground up with a doctor-led AI clinical engine, the depth and breadth of our relationships with customers worldwide has never been greater. Every quarter, we raise the standard for what care should look like everywhere: high-quality, personal, and accessible." "Our second quarter results were defined by a significant re-acceleration in our growth profile and the continued expanding reach of our platform," said Yemi Okupe, Chief Financial Officer. "Domestic revenue growth accelerated to 16% year-over-year, and our international business grew more than 17-fold, strengthened by the close of our Eucalyptus acquisition in June. We expect our domestic business to continue accelerating through the second half of the year. This momentum, combined with the meaningful efficiencies we're generating from our investments in AI and technology, positions us to make access to high touch, comprehensive care more affordable for our customers while also significantly expanding our reach internationally. As a result, we are raising our 2026 revenue outlook and building increased conviction in our 2030 targets of at least $6.5 billion in revenue and $1.3 billion in Adjusted EBITDA." Second Quarter 2026 Financial Highlights Revenue was $753.2 million for the second quarter of 2026 compared to $544.8 million for the second quarter of 2025, an increase of 38% year-over-year. Gross margin was 64% for the second quarter of 2026 compared to 76% for the second quarter of 2025. Net loss was $86.3 million for the second quarter of 2026 compared to net income of $42.5 million for the second quarter of 2025. Adjusted EBITDA was $60.3 million for the second quarter of 2026 compared to $82.2 million for the second quarter of 2025. Net cash (used in) operating activities was $(35.9) million for the second quarter of 2026 compared to $(19.1) million for the second quarter of 2025. Free Cash Flow was $(68.2) million for the second quarter of 2026 compared to $(69.4) million for the second quarter of 2025. Reconciliations of Adjusted EBITDA and Free Cash Flow, non-GAAP measures, to net (loss) income and net cash (used in) provided by operating activities, respectively, their most comparable financial measures under generally accepted accounting principles in the United States ("U.S. GAAP"), have been provided in this press release in the accompanying tables. Additional information about Adjusted EBITDA and Free Cash Flow is also included below under the heading "Non-GAAP Financial Measures". Financial Outlook Hims & Hers is providing the following guidance: For the third quarter 2026, we expect: Revenue of $880 million to $900 million. Adjusted EBITDA of $75 million to $95 million, reflecting an Adjusted EBITDA margin of 9% to 11%. For the full year 2026, we expect: Revenue of $3.1 billion to $3.3 billion. Adjusted EBITDA of $275 million to $325 million, reflecting an Adjusted EBITDA margin of 9% to 10%. The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to the "Cautionary Note Regarding Forward-Looking Statements" safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements. We have relied upon the exception in Item 10(e)(1)(i)(B) of Regulation S-K and have not reconciled forward-looking Adjusted EBITDA to its most directly comparable U.S. GAAP measure, net income or loss, because we cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliations, including market-related assumptions that are not within our control, or others that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future net income or loss. See "Non-GAAP Financial Measures" for additional important information regarding Adjusted EBITDA. Conference Call Hims & Hers will host a conference call to review the second quarter 2026 results on August 10, 2026, at 5:00 p.m. ET. The conference call can be accessed by dialing +1 (833) 461-5787 for U.S. participants and +1 (585) 542-9983 for international participants, and referencing meeting ID: 782 611 911. A live audio webcast will be available online at investors.hims.com. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call at the same link. About Hims & Hers Health, Inc. Hims & Hers is the leading global health and wellness platform on a mission to help the world feel great through the power of better health. We believe how you feel in your body and mind transforms how you show up in life. That’s why we’re building a future where nothing stands in the way of harnessing this power. Hims & Hers normalizes health & wellness challenges—and innovates on their solutions—to make feeling happy and healthy easy to achieve. No two people are the same, so the Company provides access to personalized care designed for results. For more information, please visit investors.hims.com. Cautionary Note Regarding Forward-Looking Statements This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "believes," "estimates," "anticipates," "expects," "intends," "plans," "assumes," "may," "will," "likely," "potential," "projects," "predicts," "continue," "goal," "strategy," "future," "forecast," "target," "outlook," "opportunity," "confidence," "foundation," "groundwork," or "should," or, in each case, their negative or other variations or comparable terminology. There can be no assurance that actual results will not materially differ from expectations. Such statements include, but are not limited to, any statements relating to our financial outlook and guidance, including our mission to drive top-line revenue growth and profitability and our ability to attain our 2026 and long-term financial and operational targets; our expected future financial and business performance, including with respect to the Hims & Hers platform, our marketing campaigns, investments in innovation, the solutions accessible on our platform, the markets accessible on our platform, and our infrastructure, and the underlying assumptions with respect to the foregoing; potential strategic investments, partnerships, or collaborations, and the expected timing or outcome of any such investments, partnerships, or collaborations; statements relating to events and trends relevant to us, including with respect to our regulatory environment, financial condition, results of operations, short- and long-term business operations, objectives, strategy, and financial needs; expectations regarding our mobile applications, market acceptance, user experience, customer retention, brand development, our ability to invest and generate a return on any such investment, customer acquisition costs, operating efficiencies and leverage (including our fulfillment capabilities), the effect of any pricing decisions; changes in our product or offering mix, and the timing and market acceptance of any new products or offerings; the timing and anticipated effect of any pending or recently completed acquisitions; the success and utility of our business model; our market opportunity; our ability to scale our business and expand internationally; the growth of certain of our specialties; our ability to innovate on and expand the scope of our offerings and experiences, including through the use of diagnostics, data analytics and artificial intelligence; our ability to reinvest into the customer experience; and our ability to comply with the extensive, complex and evolving legal and regulatory requirements applicable to our business, including without limitation state and federal healthcare, privacy and consumer protection laws and regulations, and the effect or outcome of litigation or governmental actions or statements in relation to any such legal and regulatory requirements. These statements are based on management’s current expectations, but actual results may differ materially due to various factors. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, the forward-looking statements contained in this press release are based on our current expectations, assumptions, and beliefs concerning future developments and their potential effects on us. Future developments affecting us may not be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) and other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the Risk Factors and other sections of our most recently filed Quarterly Report on Form 10-Q, our most recently filed Annual Report on Form 10-K, and other current and periodic reports we file from time to time with the Securities and Exchange Commission (the "Commission"). Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. The forward-looking statements contained in this press release are made only as of August 10, 2026. We undertake no obligation (and expressly disclaim any obligation) to update or revise any forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and developments in the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in reports we have filed or will file with the Commission, including our most recently filed Quarterly Report on Form 10-Q, our most recently filed Annual Report on Form 10-K, and other current and periodic reports we file from time to time. In addition, even if our results of operations, financial condition and liquidity, and developments in the industry in which we operate are consistent with the forward-looking statements contained in such reports, those results or developments may not be indicative of results or developments in subsequent periods. Key Business Metrics Our consolidated revenue primarily comprises online sales of health and wellness products through our websites and mobile applications, including prescription and non-prescription products, as well as services, primarily consisting of medical consultation services, membership-based access, post-consultation service support, and delivery of laboratory testing results, as applicable. Our online sales are net of refunds, credits, and chargebacks, and include revenue recognition adjustments recorded pursuant to U.S. GAAP, primarily relating to deferred revenue and returns reserve. A substantial majority of our online sales are subscription-based, where customers agree to be billed on a recurring basis to have products and services automatically delivered to them. This revenue also includes sales from customers who have made one-time purchases. "United States Revenue" represents the sales of products and services by our consolidated legal entities operating within jurisdictions located inside of the United States. "Rest of the World Revenue" represents the sales of products and services by our consolidated legal entities operating within jurisdictions located outside of the United States. "Subscribers" are customers who have one or more "Subscriptions" pursuant to which they have agreed to be automatically billed on a recurring basis at a defined cadence. The Subscription billing cadence is typically defined as a number of days (for example, billed every 30 days or every 90 days), which are excluded from our reporting when payment has not occurred at the contracted billing cadence. Subscribers can cancel or snooze Subscriptions in between billing periods to stop receiving additional products and/or services and can reactivate Subscriptions to continue receiving additional products and/or services. Customers who have made one-time purchases are not considered Subscribers. "Monthly Revenue per Average Subscriber" is defined as total revenue divided by "Average Subscribers", which amount is then further divided by the number of months in a period. "Average Subscribers" are calculated as the sum of the Subscribers at the beginning and end of a given period divided by 2. Non-GAAP Financial Measures In addition to our financial results determined in accordance with U.S. GAAP, we present Adjusted EBITDA (which is a non-GAAP financial measure), Adjusted EBITDA margin (which is a non-GAAP ratio), and Free Cash Flow (which is a non-GAAP financial measure), each as defined below. We also present Adjusted Gross Profit, Adjusted Marketing, Adjusted Operations and support, Adjusted Technology and development, Adjusted General and administrative (collectively, Adjusted Operating Expenses), and Adjusted Net (Loss) Income (each of which are non-GAAP financial measures). We use Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, Adjusted Gross Profit, Adjusted Operating Expenses, and Adjusted Net (Loss) Income to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, Adjusted Gross Profit, Adjusted Operating Expenses, and Adjusted Net (Loss) Income, when taken together with the corresponding U.S. GAAP financial measures, provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. We consider Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, Adjusted Gross Profit, Adjusted Operating Expenses, and Adjusted Net (Loss) Income to be important measures because they help illustrate underlying trends in our business and our historical operating performance on a more consistent basis. We believe that the use of Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, Adjusted Gross Profit, Adjusted Operating Expenses, and Adjusted Net (Loss) Income is helpful to our investors as they are used by management in assessing the health of our business, our operating performance, and our liquidity. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with U.S. GAAP. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP financial measures or ratios differently or may use other financial measures or ratios to evaluate their performance, all of which could reduce the usefulness of Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, Adjusted Gross Profit, Adjusted Operating Expenses, and Adjusted Net (Loss) Income as tools for comparison. Reconciliations are provided below to the most directly comparable financial measures stated in accordance with U.S. GAAP. Investors are encouraged to review our U.S. GAAP financial measures and not to rely on any single financial measure to evaluate our business. Adjusted EBITDA is a key performance measure that our management uses to assess our operating performance. Because Adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure for business planning purposes. "Adjusted EBITDA" is defined as net (loss) income before legal contingencies that are considered non-recurring, stock-based compensation, depreciation and amortization, acquisition and transaction-related costs (which includes (i) consideration paid for employee and nonemployee compensation with vesting requirements incurred directly as a result of acquisitions, and (ii) transaction professional services), restructuring and other related charges that are considered non-recurring, change in fair value of liabilities, payroll tax expense related to stock-based compensation, impairment of long-lived assets, interest income and expense, net, change in fair value of equity securities, and income taxes. "Adjusted EBITDA margin" is defined as Adjusted EBITDA divided by revenue. In the first quarter of 2026, we announced a strategic shift for our United States weight loss offering ("2026 US WL Announcement"). As a result, we evolved our United States weight loss offering to match our global approach towards providing access to branded GLP-1 medications, and offering access to compounded GLP-1 medications through our platform on a limited scale. In connection with the strategic shift, we revised our definition of Adjusted EBITDA to include restructuring and other related charges that are considered non-recurring, as we believe these costs are distinguishable from ongoing operating costs and do not reflect current or expected performance of our ongoing operations. These costs consist of inventory write-downs, third-party costs, and non-recurring employee compensation charges, all of which were incurred directly as a result of the 2026 US WL Announcement. Additional restructuring and other related charges were incurred in the second quarter of 2026, and to the extent that we incur further restructuring and other related charges in connection with the 2026 US WL Announcement in future periods, these costs will be presented consistently with our current presentation. As we did not record any non-recurring restructuring and other related charges in prior years, prior period disclosures were not impacted. In the second quarter of 2025, we revised our definition of Adjusted EBITDA to include payroll tax expense related to stock-based compensation, which comprises employer taxes incurred upon vesting of restricted stock units and upon exercise of nonqualified stock options. As a result of recent trends in our stock price, this amount was not considered significant for prior periods and, accordingly, prior period disclosures were not recast to conform to the current presentation. Some of the limitations of Adjusted EBITDA include (i) Adjusted EBITDA does not properly reflect capital commitments to be paid in the future, and (ii) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures. In evaluating Adjusted EBITDA, you should be aware that in the future we will incur expenses similar to the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these expenses or any unusual or non-recurring items. We compensate for these limitations by providing specific information regarding the U.S. GAAP items excluded from Adjusted EBITDA. When evaluating our performance, you should consider Adjusted EBITDA in addition to, and not as a substitute for, other financial performance measures, including our net (loss) income and other U.S. GAAP results. Free Cash Flow is a key performance measure that our management uses to assess our liquidity. Because Free Cash Flow facilitates internal comparisons of our historical liquidity on a more consistent basis, we use this measure for business planning purposes. "Free Cash Flow" is defined as net cash (used in) provided by operating activities, less purchases of property, equipment, and intangible assets and investment in website development and internal-use software in investing activities. Some of the limitations of Free Cash Flow include (i) Free Cash Flow does not represent our residual cash flow for discretionary expenditures and our non-discretionary commitments, and (ii) Free Cash Flow includes capital expenditures, the benefits of which may be realized in periods subsequent to those in which the expenditures took place. In evaluating Free Cash Flow, you should be aware that in the future we will have cash outflows similar to the adjustments in this presentation. Our presentation of Free Cash Flow should not be construed as an inference that our future results will be unaffected by these cash outflows or any unusual or non-recurring items. When evaluating our performance, you should consider Free Cash Flow in addition to, and not as a substitute for, other financial performance measures, including our net cash (used in) provided by operating activities and other U.S. GAAP results. Adjusted Gross Profit, Adjusted Operating Expenses, and Adjusted Net (Loss) Income are key performance measures that our management uses to assess our operating performance. Because Adjusted Gross Profit, Adjusted Operating Expenses, and Adjusted Net (Loss) Income facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes. "Adjusted Gross Profit" is defined as gross profit adjusted for restructuring and other related charges included within cost of revenue. "Adjusted gross margin" is defined as Adjusted Gross Profit divided by revenue. "Adjusted Marketing" is defined as marketing expense adjusted for stock-based compensation. "Adjusted Operations and support" is defined as operations and support expense adjusted for stock-based compensation and restructuring and other related charges included within operating expenses. "Adjusted Technology and development" is defined as technology and development expense adjusted for stock-based compensation. "Adjusted General and administrative" is defined as general and administrative expense adjusted for legal contingencies, acquisition and transaction-related costs, and stock-based compensation. "Adjusted Net (Loss) Income" represents Net (Loss) Income adjusted for legal contingencies, acquisition and transaction-related costs, and restructuring and other related charges, net of related tax effects. Some of the limitations of Adjusted Gross Profit, Adjusted Operating Expenses, and Adjusted Net (Loss) Income include that they omit certain costs and charges, and therefore do not reflect all expenses that impact the corresponding U.S. GAAP results. In evaluating Adjusted Gross Profit, Adjusted Operating Expenses, and Adjusted Net (Loss) Income, you should be aware that in the future we may incur expenses similar to the adjustments in this presentation. Our presentation of Adjusted Gross Profit, Adjusted Operating Expenses, and Adjusted Net (Loss) Income should not be construed as an inference that our future results will be unaffected by these expenses or any unusual or non-recurring items. We compensate for these limitations by providing specific information regarding the U.S. GAAP items excluded from Adjusted Gross Profit, Adjusted Operating Expenses, and Adjusted Net (Loss) Income. When evaluating our performance, you should consider Adjusted Gross Profit, Adjusted Operating Expenses, and Adjusted Net (Loss) Income in addition to, and not as a substitute for, other financial performance measures, including our net (loss) income and other U.S. GAAP results. View source version on businesswire.com: https://www.businesswire.com/news/home/20260810713364/en/ Contacts Investor Relations Bill [email protected] Media Relations Abby [email protected]