Form type: 10-Q
Period end: 2026-03-31
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | |
|---|---|---|
| Revenue | 608,104,000 | 586,010,000 |
| Total Revenue | ||
| Cost of revenue | 211,317,000 | 155,321,000 |
| Total COGS | ||
| Gross Profit | ||
| General and administrative | 109,668,000 | 48,610,000 |
| Income tax expense (benefit) | -9,436,000 | 11,010,000 |
| Other income (expense), net | 23,228,000 | -2,598,000 |
| Other operating expenses | 143,439,000 | 92,947,000 |
| Selling and marketing | 222,003,000 | 231,235,000 |
| Total Expenses | ||
| Net Income | - | |
| Basic earnings per share | - |
| March 31, 2026 | December 31, 2025 | |
|---|---|---|
| Assets | ||
| Accounts receivable | 149,620,000 | 32,100,000 |
| Cash and cash equivalents | 222,266,000 | 228,616,000 |
| Deferred tax assets | 92,091,000 | 82,707,000 |
| Goodwill and intangibles | 603,872,000 | 474,441,000 |
| Inventory | 79,073,000 | 80,128,000 |
| Long-term investments | 0 | 351,263,000 |
| Operating lease right-of-use assets | 144,247,000 | 137,046,000 |
| Other assets (derived) | 323,236,000 | 307,605,000 |
| Other current assets | 10,609,000 | 4,374,000 |
| Other noncurrent assets | 47,625,000 | 29,680,000 |
| Prepaid expenses and other current assets | 65,795,000 | 77,869,000 |
| Short-term investments | 528,609,000 | 348,876,000 |
| Total Assets | ||
| Liabilities | ||
| Accounts payable | 306,865,000 | 143,278,000 |
| Accrued compensation | 15,790,000 | 16,103,000 |
| Accrued liabilities | 90,743,000 | 78,518,000 |
| Deferred revenue | 165,132,000 | 127,160,000 |
| Deferred tax liabilities | 23,511,000 | 28,856,000 |
| Long-term debt | 974,106,000 | 972,580,000 |
| Operating lease liabilities, current | 5,579,000 | 4,843,000 |
| Operating lease liabilities, noncurrent | 152,352,000 | 143,167,000 |
| Other accrued liabilities | 29,319,000 | 18,865,000 |
| Other liabilities (derived) | 30,505,000 | 59,037,000 |
| Other noncurrent liabilities | 12,899,000 | 11,734,000 |
| Taxes payable | 14,075,000 | 9,636,000 |
| Total Liabilities | ||
| Equity | ||
| Stockholders equity | 446,167,000 | 540,928,000 |
| Total Equity | ||
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | |
|---|---|---|
| Operating activities | ||
| Net income | -92,115,000 | 49,485,000 |
| Depreciation and amortization | 21,953,000 | 8,276,000 |
| Stock-based compensation | 36,862,000 | 24,858,000 |
| Changes in operating assets and liabilities, net | 122,656,000 | 26,471,000 |
| Net cash from operating activities | ||
| Investing activities | ||
| Investing activities, net | -15,446,000 | -32,796,000 |
| Net cash from investing activities | - | - |
| Financing activities | ||
| Financing activities, net | -77,880,000 | -23,018,000 |
| Net cash from financing activities | - | - |
| Effect of exchange rate changes on cash | - | |
| Net change in cash | - | |
| Cash at beginning of period | 221,440,000 | |
| Cash at end of period | 274,959,000 | |
| Amount | |
|---|---|
| Balance at beginning of period | 540,928,000 |
| Net income | -92,115,000 |
| Other equity movements | -2,646,000 |
| Balance at end of period | 446,167,000 |
Hims & Hers Health, Inc. is a public reporting company classified under Services-Offices & Clinics of Doctors of Medicine. The accompanying unaudited condensed financial statements have been prepared from the Company's books and records and reflect all adjustments that management considers necessary for a fair statement of the Company's financial position and results of operations for the interim period presented. The condensed financial statements are presented as of and for the period ended March 31, 2026, and the results of operations for the interim period are not necessarily indicative of the results to be expected for the full fiscal year.
Revenue for the three months ended March 31, 2026 was $608.1 million, an increase of 3.8% from $586.0 million in the comparable prior-year period. Rest of the World Revenue was $78.2 million for the three months ended March 31, 2026, an increase of $70.9 million, or 969%, as compared to $7.3 million for the three months ended March 31, 2025, driven primarily by the geographic expansion from our recent acquisitions. Subscribers grew 9% to approximately 2.6 million as of March 31, 2026 as compared to approximately 2.4 million Subscribers as of March 31, 2025, primarily driven by increased traffic to our platform as a result of our marketing activities and improved onsite and customer onboarding experiences. Monthly Revenue per Average Subscriber decreased $5 to $80 for the three months ended March 31, 2026 as compared to $85 for the three months ended March 31, 2025. Deferred revenue was $165.1 million as of March 31, 2026, compared to $110.8 million in the prior period, an increase of 49.1%. For the three months ended March 31, 2026, the Company reported a net loss of $92.1 million, and basic net loss per share was $0.40, computed using weighted-average basic shares outstanding of 228,357,303.
As of March 31, 2026, long-term debt was $974.1 million, and operating lease liabilities consisted of a current portion of $5.6 million and a noncurrent portion of $152.4 million. Total debt, inclusive of operating lease liabilities, was $1,820.9 million as of March 31, 2026. The Company had no long-term debt outstanding in the prior period, while operating lease liabilities increased 49.3% on the current portion and 155.4% on the noncurrent portion relative to prior balances of $3.7 million and $59.6 million, respectively. Operating lease right-of-use assets were $144.2 million as of March 31, 2026, compared to $62.2 million in the prior period, an increase of 131.9%. The terms of the long-term debt, including interest rates and maturities, are [COMPLETE: describe debt instrument terms, interest rates, and maturity dates].
Total stockholders' equity was $446.2 million as of March 31, 2026, a decrease of 18.8% from $549.3 million in the prior period. The decrease in stockholders' equity primarily reflects the net loss of $92.1 million recognized during the period. Additional information regarding equity transactions during the period, including any share issuances or repurchases, is [COMPLETE: describe equity transactions during the period, if any].
| Current | Prior | |
|---|---|---|
| Long-term debt | 974,106,000 | 972,580,000 |
| Operating lease liabilities, current | 5,579,000 | 4,843,000 |
| Operating lease liabilities, noncurrent | 152,352,000 | 143,167,000 |
| Total debt | 1,132,037,000 | 1,120,590,000 |
| Current | Prior | |
|---|---|---|
| Stockholders equity | 446,167,000 | 540,928,000 |
| Total stockholders' equity | 446,167,000 | 540,928,000 |
Hims & Hers Health, Inc. is a public reporting company classified under Services-Offices & Clinics of Doctors of Medicine. The following discussion of our results of operations and financial condition should be read in conjunction with our unaudited financial statements and the related notes included elsewhere in this report. For the three months ended March 31, 2026, revenue was $608.1 million, an increase of $22.1 million from $586.0 million for the three months ended March 31, 2025, representing growth of 3.8%. [COMPLETE: description of the specific business drivers of revenue growth]. Cost of revenue increased 36.1% to $211.3 million from $155.3 million in the prior-year period, and as a result gross profit declined to $396.8 million from $430.7 million. [COMPLETE: description of drivers of the increase in cost of revenue].
Operating expenses reflected offsetting movements: selling and marketing expense decreased 4.0% to $222.0 million from $231.2 million, while general and administrative expense increased 125.6% to $109.7 million from $48.6 million, and other operating expenses increased 54.3% to $143.4 million from $92.9 million. [COMPLETE: description of drivers of the increases in general and administrative and other operating expenses]. Other income (expense), net moved from income of $2.6 million in the prior-year period to a net expense of $23.2 million in the current period. We recorded an income tax benefit of $9.4 million in the current period, compared with income tax expense of $11.0 million in the prior-year period. As a result of the foregoing, we recorded a net loss of $92.1 million for the three months ended March 31, 2026, compared with net income of $49.5 million for the three months ended March 31, 2025. Basic loss per share was $0.40, based on weighted-average basic shares outstanding of 228,357,303.
Cash and cash equivalents were $222.3 million at March 31, 2026, a decrease of 18.8% from $273.7 million in the prior period, and restricted cash and equivalents decreased to zero from $1.2 million. Short-term investments increased to $528.6 million from $48.9 million. Long-term debt was $974.1 million at March 31, 2026, compared with no outstanding long-term debt in the prior period. [COMPLETE: description of the debt issuance and use of proceeds]. Management is not aware of any covenant violations during the period. Total stockholders' equity was $446.2 million at March 31, 2026, compared with $549.3 million in the prior period, a decrease of 18.8%. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and we do not have material foreign currency or commodity price exposure. Based on our current operating plan, management believes that our existing cash, cash equivalents, and short-term investments will be sufficient to fund our operations and capital requirements for at least the next twelve months from the date of this report.
We are exposed to market risks in the ordinary course of our business, and our primary market risk exposure is interest rate risk on our cash, cash equivalents, and short-term investments. As of March 31, 2026, we held cash and cash equivalents of $222.3 million and short-term investments of $528.6 million, compared to cash and cash equivalents of $273.7 million and short-term investments of $48.9 million as of the prior period end. Restricted cash and equivalents were zero as of March 31, 2026, compared to $1.2 million in the prior period. Because these balances consist of interest-bearing instruments, changes in prevailing interest rates could affect the interest income we earn and the fair value of our investment portfolio. A hypothetical change in interest rates of [COMPLETE: basis point sensitivity assumption] would result in [COMPLETE: estimated impact on fair value and interest income]; however, due to the short-term nature of our portfolio, we do not believe an immediate change in interest rates would have a material effect on our financial condition or results of operations.
In addition, as of March 31, 2026 we had long-term debt of $974.1 million outstanding, whereas we had no long-term debt outstanding as of the prior period end. [COMPLETE: description of whether the debt bears fixed or variable interest and associated interest rate risk exposure]. During the period, other income, net was $23.2 million, compared to other expense, net of $2.6 million in the prior-year period, reflecting in part the interest income earned on our invested balances.
We do not have material foreign currency or commodity price exposure. Accordingly, we do not currently engage in hedging activities with respect to foreign currency or commodity price risk, although we will continue to monitor our exposure to these and other market risks as our business evolves.
Our management, with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2026, the end of the period covered by this Quarterly Report. Based on that evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period. The certifications of our principal executive officer and principal financial officer required under Rule 13a-14(a) and 18 U.S.C. Section 1350 are filed or furnished as exhibits to this Quarterly Report. [COMPLETE: management to review and formally adopt the conclusion language set forth in this Item prior to filing.]
Our disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed in the reports we file or submit under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission, and that such information is accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
There were no changes in our internal control over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting during the quarter ended March 31, 2026.
From time to time, we are involved in legal proceedings arising in the ordinary course of business. These matters may include, among other things, claims and disputes incidental to the conduct of our operations. The outcome of litigation is inherently uncertain, and an unfavorable resolution of one or more matters could occur.
We do not currently believe that any pending legal matter is material to our financial statements. We will continue to monitor developments in these matters and will record accruals or provide additional disclosure if and when required.
Our business is subject to extensive laws and governmental regulations, and if we fail to comply with applicable laws and/or governmental regulations, we could face substantial penalties, our business, financial condition, and results of operations could be materially and adversely affected, and we may be required to restructure our operations. We have been, and in the future may be, subject to actions and public statements by U.S. federal and state government officials and agencies, which could materially and adversely affect our business, financial condition, results of operations and reputation. From time to time we are subject to legal and regulatory proceedings and inquiries in the ordinary course of business, which can include intellectual property disputes or claims relating to our marketing or sale of products, any of which may be costly to defend and could materially harm our business and results of operations. Although we are involved in legal proceedings arising in the ordinary course of business from time to time, management does not currently believe any pending matter is material to the financial statements; however, the outcome of litigation and regulatory matters is inherently uncertain, and adverse developments could differ from our expectations.
We have incurred net losses and may not achieve or sustain profitability in future periods. For the period ended March 31, 2026, we generated revenue of $608.1 million and recorded a net loss of $92.1 million. Our cost of revenue increased 36.1% to $211.3 million from $155.3 million in the prior period, and general and administrative expenses increased 125.6% to $109.7 million from $48.6 million, while revenue grew 3.8% to $608.1 million from $586.0 million. If our operating expenses continue to grow faster than our revenue, our results of operations and financial condition could be materially and adversely affected, and we may need to raise additional capital on terms that may not be favorable to us or our stockholders.
Our indebtedness and liquidity position expose us to financial risks. As of March 31, 2026, we had long-term debt of $974.1 million, compared to none in the prior period, and total liabilities of $1,820.9 million against total stockholders' equity of $446.2 million. Our cash and cash equivalents declined 18.8% to $222.3 million from $273.7 million, and our stockholders' equity declined 18.8% to $446.2 million from $549.3 million. Our primary market risk exposure is interest rate risk on our cash, cash equivalents, and short-term investments, and our short-term investments increased to $528.6 million from $48.9 million, which increases our sensitivity to changes in interest rates. Our substantial debt obligations could limit our operating flexibility, require us to dedicate cash flow to debt service, and adversely affect our ability to respond to changes in our business or pursue strategic opportunities.
The following disclosure is provided pursuant to Item 408(a) of Regulation S-K regarding Rule 10b5-1 trading arrangements of our directors and officers during the quarter ended March 31, 2026: [COMPLETE: Rule 10b5-1 trading arrangement adoptions and terminations from the D&O questionnaires].