63.8% was Hims & Hers Health's gross margin for the three months ended June 30, down from 76.4% a year earlier. The company sold substantially more, then kept a much smaller slice of each dollar.
Revenue rose 38.2% to $753.2 million from $544.8 million. Gross profit increased only 15.5%, to $480.8 million from $416.2 million. That spread is the filing's central fact: growth arrived faster than the profit attached to it.
Management tied the cost pressure to weight-loss offerings, which have higher product, packaging, and shipping costs, as well as to new subscribers and recent acquisitions. The filing also points to shorter shipping cadences, increased fulfillment costs, international growth, new offerings, and restructuring charges connected to the 2026 US WL Announcement.
The company put the explanation plainly:
"These increases in cost of revenue for the three and six months ended June 30, 2026 were primarily due to our weight loss offerings, some of which have higher product and packaging costs and shipping costs compared to our other offerings, including as a result of the 2026 US WL Announcement, as well as overall increased business activity with the addition of new Subscribers and our recent acquisitions."
10-Q 2026-08-10
The important word is “primarily.” Hims is not describing a sales problem. It is describing a more expensive sales mix, alongside costs from expansion and acquisitions.
That translated into a $97.2 million operating loss, versus $26.7 million of operating income in the comparable three months. Net income swung to a loss of $86.3 million from income of $42.5 million. The operating margin moved from 4.9% to negative 12.9%, a sharp change in the economics of the reported period.
Cash generation also weakened, though not in lockstep with the accounting loss. Operating cash flow fell 40.6% to $53.4 million from $90.0 million, while cash declined to $609.8 million from $1.1 billion. Capex fell 35.9% to $32.3 million, so the cash movement was not simply a heavier investment program disclosed in the comparison.
The six-month cash-flow reconciliation shows why net loss and cash flow should not be treated as interchangeable. It included non-cash stock compensation, depreciation and amortization, fair-value changes, acquisition-related costs, debt-cost amortization, and impairment alongside the net loss.
"Net cash provided by operating activities included non-cash expense related to stock-based compensation of $79.0 million, depreciation and amortization of $51.4 million, restructuring and other related charges included within cost of revenue of $28.5 million , change in fair value of liabilities of $21.9 million, non-cash acquisition-related costs of $21.3 million, change in fair value of equity securities of $4.9 million, amortization of debt discount and issuance costs of $3.7 million, and impairment of long-lived assets of $1.1 million, partially offset by a net loss of $178.4 million and benefit from deferred taxes of $23.3 million."
10-Q 2026-08-10
Those are accounting and reconciliation items, and some were non-cash rather than cash leaving the business. The cash receipt is still smaller than last year, but the reported loss does not by itself measure the period's cash spending.
The filing marks a break from the company's latest annual results, which showed 2025 revenue of $2.3 billion and a 4.5% operating margin. Shares closed at $31.60 on August 7, up 6.7% that day, a market fact that sits next to an income statement showing much weaker near-term margins, not an explanation for it.
Hims' next quarterly report is where the unresolved detail should become more concrete: how much of the gross-margin pressure remains tied to weight-loss product mix and shorter shipping cadences, and how much belongs to the non-recurring restructuring charges the company identified?
Source: Hims & Hers Health 10-Q filed August 10, 2026.