Title

Earning Preview: Hims & Hers Health Inc. this quarter’s revenue is expected to increase by 31.66%, and institutional views are bearish

Abstract

Hims & Hers Health Inc. will report quarterly results on February 23, 2026, Post Market; this preview consolidates recent financial data, company forecasts, and institutional commentary to outline revenue, margin, EPS trajectories and near‑term stock drivers.

Market Forecast

The market anticipates Hims & Hers Health Inc. to deliver revenue of 619.22 million in the current quarter, a 31.66% year‑over‑year increase, with adjusted EPS around $0.03 and EBIT of 11.96 million reflecting a 57.58% year‑over‑year decline; gross margin and net margin guidance were not disclosed. Company disclosures point to continued execution in its core online channel while investments temper near‑term profitability, with revenue mix dominated by direct‑to‑consumer subscriptions. The main business is expected to sustain momentum on subscriber retention and product breadth, following last quarter’s 589.10 million contribution from the online channel and a smaller 9.88 million from wholesale; management’s recent product updates and platform enhancements indicate ongoing cross‑sell opportunities across categories.

Last Quarter Review

Hims & Hers Health Inc. posted revenue of 598.98 million, a gross profit margin of 73.80%, GAAP net profit attributable to the parent company of 15.77 million, a net profit margin of 2.63%, and adjusted EPS of $0.06, reflecting a year‑over‑year decline of 81.25%. Revenue exceeded prior estimates by 18.73 million, and EBIT reached 11.81 million despite stepped‑up investment spending, while sequential net profit fell by 62.89% given heavier operating expenses and scaling initiatives. The online channel generated 589.10 million and accounted for 98.35% of sales, effectively powering the company’s 49.16% year‑over‑year revenue growth, while wholesale contributed 9.88 million and remained a modest share of the mix.

Current Quarter Outlook

Online Direct-to-Consumer Platform

The online direct‑to‑consumer platform remains the primary driver of reported results and near‑term trajectory, supported by subscriber growth, retention initiatives, and the broadening of product offerings across categories. Last quarter’s channel contribution of 589.10 million and mix of 98.35% underscore the scale of this engine, and the forecast for 619.22 million in total revenue implies ongoing demand within the platform even as the company invests for future growth. Gross margin of 73.80% suggests a pricing and sourcing framework that historically supports high contribution margins, although the forecast for adjusted EPS of approximately $0.03 and EBIT of 11.96 million indicates a near‑term compression in profitability as spending on talent and technology increases. Product expansion is a core tactic in enhancing lifetime value, and there are tangible signs of broadened health offerings designed to deepen engagement. The recent launch of a multi‑cancer early detection blood test via GRAIL’s Galleri technology enhances the clinical stack and could increase average order value among eligible customers seeking preventive screening. Add‑on capabilities such as labs and new geographies discussed by institutions reflect additional avenues to monetize the platform while maintaining a unified experience across operations, marketing, product, and commercial functions. In the current quarter, investors will watch whether the platform’s breadth translates into steadier conversion and retention despite the marketing and infrastructure investments typical of a scaling telehealth platform. Margin dynamics within the online channel are a focal point. The company’s last quarter net margin of 2.63% and sequential decline in GAAP net profit by 62.89% signal that the investment cycle weighs on bottom‑line conversion even as gross margin is resilient. Model sensitivity hinges on acquisition costs, unit economics in new products, and the balance between discounting and cohort quality. A consistent gross margin near the mid‑70s can provide buffer against operating expense inflation; however, the current quarter EPS forecast decline of 68.47% year‑over‑year implies more constrained operating leverage, which may cap bottom‑line upside absent stronger-than-expected retention and cross‑sell metrics.

Weight Management and GLP‑1 Treatments

The weight management franchise, including GLP‑1–associated offerings, represents a high‑visibility category with demand tailwinds but has encountered material regulatory and legal constraints in the last six weeks. Public regulatory commentary highlighted potential federal action to restrict the use of active pharmaceutical ingredients for compounding GLP‑1 formulations, and Novo Nordisk initiated litigation over alleged patent infringement tied to mass marketing of unapproved alternatives to Wegovy and Ozempic. In response, Hims & Hers Health Inc. announced it would discontinue its oral semaglutide pill offering, signaling a rapid pivot to align with regulators and stakeholders; near‑term revenue contribution from this specific product is, therefore, expected to be curtailed. Institutional analyses have reflected this changing environment. A widely cited note reduced 2026 GLP‑1 revenue expectations and emphasized risks to compounded alternatives as adoption of FDA‑approved branded products expands. For the current quarter, the operational impact is twofold: first, product discontinuation constrains the growth profile that had been priced as an incremental driver; second, the legal and regulatory overhang can increase operating costs and management bandwidth allocation, potentially pressuring EBIT and net margins. Under a scenario where compounded offerings remain restricted, the business may need to focus more on branded pathways, clinical partnerships, and adjacent weight‑management programs—areas that could rebuild momentum but typically have different margin structures from compounded channels. Despite the near‑term headwinds, the category retains significant patient interest, and the platform architecture enables rapid content and protocol adjustments. A pivot toward compliant, branded therapeutics or structured programs could mitigate demand volatility, but this route often requires revised economics, including higher acquisition cost or lower unit margins, and can extend time to scale. The immediate implication for this quarter is that, while total revenue is still forecast to grow 31.66% year‑over‑year, the profitability drag from category volatility may contribute to the forecasted 57.58% year‑over‑year decline in EBIT and a 68.47% year‑over‑year decline in adjusted EPS. Management commentary around category strategy, procurement, and payer pathways will be important signals for the durability of monetization in weight management beyond this quarter.

Key Stock Price Drivers This Quarter

The primary stock price drivers are expected to center on guidance clarity, regulatory developments, and the pacing of investment across technology, operations, and new products. Guidance that reconciles robust top‑line growth with the current forecasted declines in EPS and EBIT will be critical, particularly given a last quarter gross margin of 73.80% that suggests a strong contribution profile yet mixed operating leverage. Investors will parse the balance between acquisition spending and cohort health, since the sequential decline in GAAP net profit by 62.89% and last quarter’s net margin of 2.63% reflect the intensity of the investment cycle relative to revenue scale. Regulatory and legal outcomes around GLP‑1 offerings are likely to influence sentiment and valuation multiples in the near term. The discontinuation of the oral semaglutide pill, combined with regulatory messaging on compounding, raises questions about the future footprint of weight‑management offerings and the related revenue streams. This carries both headline risk and operational implications should procurement or marketing changes be mandated, with spillovers into margins and working capital management. Investors will also weigh updates on platform partnerships, such as the multi‑cancer blood test launch, which could broaden service breadth and potentially enhance customer lifetime value even as it may not immediately offset any GLP‑1 headwinds. Execution against the platform roadmap, including labs, hormone therapies, and geographic expansion, is another key determinant for the quarter. Institutional commentary anticipates a step up in 2026 investment for talent and technology, which in the short run may pressure EBITDA margins before generating scale effects. Market reaction will likely hinge on how management frames the timing of returns on these investments, the expected impact on per‑user monetization, and visibility into mix shifts between core telehealth categories and newly introduced services. Any quantification of cross‑sell lift, churn reduction, or conversion improvement would help the market assess whether the forecasted 31.66% revenue growth can translate into more favorable operating leverage in subsequent quarters.

Analyst Opinions

Bearish views dominate over bullish calls in recent months, with multiple well‑known institutions flagging revenue mix and margin risks amid regulatory developments; on balance, the negative camp outweighs the positive by roughly three to one. Bank of America Securities reiterated an Underperform view while cutting its price target to $21 and highlighting that 2026 is shaped as a heavier investment year with expectations for margin compression; the firm also reduced its GLP‑1 revenue estimates to reflect potential restrictions on compounding and increased adoption of branded therapies. Citi maintained a Sell rating with a $30 target, citing uncertainty around the durability of certain weight‑management offerings and the implications for profitability in the near term. These perspectives align with the company‑level forecasts showing a projected 31.66% year‑over‑year increase in revenue alongside an expected 57.58% decline in EBIT and a 68.47% decline in adjusted EPS, a combination that, in the eyes of bearish analysts, underscores a gap between top‑line expansion and efficient conversion to earnings in the current environment. The caution from bearish institutions centers on several themes that dovetail with recent disclosures and events. First, regulatory and legal scrutiny around compounded GLP‑1 products introduces both revenue risk and cost friction from compliance and potential litigation, and the company’s decision to halt its oral semaglutide pill underscores the need to adapt product strategy quickly. Second, the investment cadence required to build out technology, clinical integrations, and new service lines—while supportive of long‑term platform depth—can depress near‑term EPS and EBIT, as reflected in the current quarter’s projections. Third, even with a robust gross margin of 73.80% last quarter, operating expenses associated with scaling, customer acquisition, and category launches can dilute net margins; bears argue that consensus expectations for margin expansion may be optimistic until the platform reaches new scale thresholds or rebalances spend. Bearish commentary also situates the near‑term stock reaction within a framework of guidance credibility and product‑market fit adjustments. Analysts in the negative camp anticipate that management will prioritize compliance and patient safety in high‑demand categories, which might reduce short‑term monetization from weight management while the company explores branded pathways or alternative therapeutic structures. In parallel, they will watch for signals that cross‑category initiatives—labs, screening programs, and broader care offerings—can sustain growth without materially compromising unit economics. If management can provide a clear roadmap showing how the 31.66% revenue growth trajectory converts into improved EBIT and EPS beyond the current investment phase, bearish skepticism could moderate; absent that, bears expect valuation to be constrained by nearer‑term profitability headwinds and regulatory uncertainty. Taken together, the prevailing institutional stance is cautionary: while the platform supports strong revenue growth and an expanding service portfolio, the interaction of regulatory constraints in weight management and elevated investment spending leads bears to expect short‑term pressure on margins and earnings. The upcoming report on February 23, 2026, Post Market, will be evaluated through that lens, with emphasis on three items—updated commentary on GLP‑1 strategy, evidence of operating leverage within the online channel, and visibility into the timing of returns on 2026 investment plans—to test whether the current consensus can pivot from top‑line momentum to a clearer path for earnings improvement.