HIMS Q2 Earnings Call Focuses on AI and Global Expansion

HIMS Sees AI Driving Engagement and Lower Costs

Chief technology officer Mohamed ElShenawy said the phased AI-native Hers weight loss rollout increased customer messaging threefold, with AI answering 80% of questions.

ElShenawy said the system reduced nonclinical support tasks by nearly 50%, while clinicians remain in control of clinical decisions and AI interactions follow internal protocols.

Chief financial officer (CFO) Yemi Okupe said early pilots are also showing lower cancellations and cost savings, with AI investments expected to pay back within 12 to 18 months.

Hims & Hers Broadens Higher-Complexity Care

Chief executive officer Andrew Dudum said testosterone is scaling faster than any specialty except weight loss three quarters after launch, supporting injectable and oral TRT plans before year-end.

Dudum said Hims & Hers is preparing a peptide offering with U.S.-manufactured APIs and blood testing, while targeting allowed products such as sermorelin, glutathione and NAD+ before year-end.

In Q&A, a Needham analyst pressed on the trigger for six peptides discussed at the PCAC meeting. CEO Dudum said HIMS will wait for full and final FDA rulemaking before launch.

HIMS Raises Revenue View Despite Margin Trade-Off

Okupe guided third-quarter revenues in the range of $880 million-$900 million and adjusted EBITDA in the range of $75 million-$95 million. Full-year revenue guidance rose to $3.1 billion-$3.3 billion, with adjusted EBITDA at $275 million-$325 million.

CFO Okupe said management expects branded weight loss and international growth to keep gross margins below historical levels in the second half. Second-quarter gross margin was 64%, while adjusted EBITDA was $60.3 million.

Revenues of $753.2 million topped the Zacks Consensus Estimate of $690.2 million. The reported loss of 10 cents per share was wider than the 7-cent consensus loss.

Hims & Hers Uses Eucalyptus to Widen Its Reach

Dudum said Eucalyptus adds weight loss operations in the U.K., Australia, Germany, Japan and Canada, providing a base to export specialties such as testosterone, menopause, dermatology and sexual health.

Okupe said Eucalyptus contributed about $40 million of second-quarter revenues. International revenues reached $131 million, and management expects at least $600 million for 2026.

In Q&A, a Barclays analyst asked about international profitability. Okupe said Eucalyptus was running around breakeven to moderate losses, while management expects international operations to remain at or near breakeven as HIMS prioritizes scale.

HIMS Q&A Tests Retention and U.S. Growth

A Canaccord Genuity analyst asked about branded weight loss retention and the Novo Nordisk relationship. Okupe said retention was tracking expectations and cohorts using newer app and AI tools showed lower cancellations.

Dudum said the Novo collaboration could broaden across strategic markets and include more data sharing on adherence, side effects and dosing. He also cited strong demand for the Wegovy pill.

An Evercore ISI analyst questioned second-half U.S. acceleration. CFO Okupe said monthly branded-product cohort stacking, retention improvements and newer specialties are expected to support revenue and EBITDA growth, with efficiency gains available for lower prices and international expansion.

Hims & Hers Maintains an Investment-Heavy Posture

Dudum emphasized using scale, infrastructure and partnerships to deepen the platform across conditions and geographies. Okupe framed spending on AI, new specialties and international markets as deliberate.

CFO Okupe also said HIMS expects free cash flow generation to resume in the second half, pairing expansion with a focus on EBITDA dollars and cash generation.

Zacks Signals Show a Mixed Near-Term Profile

HIMS carries a Zacks Rank #3 (Hold), with a Value Score of C, Growth Score of B, Momentum Score of F and VGM Score of C. Under the Zacks Style Scores framework, Growth is the strongest reading and Momentum the weakest.

Zacks identifies the stronger setup as a Zacks Rank #1 (Strong Buy) or #2 (Buy) paired with Style Scores of A or B. HIMS does not fit that broader combination today, and its Zacks Rank can change as earnings estimates are revised after the just-reported results. You can see the complete list of today’s Zacks #1 Rank stocks here.

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