Revenue growth has decelerated sharply to 3.8% in 2026Q1, while gross margins have contracted significantly from a peak of 82.7% in 2023Q4 to 49.4%.
| Sales/Revenue | 2.37B | 2.35B | 1.48B | 872M | 526.92M | 271.88M | 148.76M | 82.56M |
| Revenue Growth % | 32.81% | 59% | 69.33% | 65.49% | 93.81% | 82.77% | 80.18% | - |
| Cost of Goods Sold | 766.76M | 614.26M | 303.38M | 157.05M | 118.19M | 67.38M | 39.31M | 37.95M |
| COGS % of Revenue | - | 26.16% | 20.55% | 18.01% | 22.43% | 24.78% | 26.42% | 45.97% |
| Gross Profit | 1.6B | 1.73B | 1.17B | 714.95M | 408.72M | 204.49M | 109.45M | 44.6M |
| Gross Margin % | 67.64% | 73.83% | 79.45% | 81.99% | 77.57% | 75.22% | 73.58% | 54.03% |
| Gross Profit Growth % | - | 47.76% | 64.09% | 74.92% | 99.87% | 86.84% | 145.38% | - |
| Operating Expenses | 1.57B | 1.63B | 1.11B | 744.4M | 477.42M | 319.54M | 124.59M | 119.02M |
| OpEx % of Revenue | - | 69.34% | 75.26% | 85.37% | 90.61% | 117.53% | 83.76% | 144.16% |
| Selling, General & Admin | 1.24B | 1.19B | 846.61M | 576.32M | 370.78M | 249.56M | 113.36M | 119.02M |
| SG&A % of Revenue | - | 50.78% | 57.34% | 66.09% | 70.37% | 91.79% | 76.2% | 144.16% |
| Research & Development | 166.32M | 149.3M | 78.82M | 48.23M | 29.24M | 22.38M | 11.24M | 0 |
| R&D % of Revenue | - | 6.36% | 5.34% | 5.53% | 5.55% | 8.23% | 7.55% | - |
| Other Operating Expenses | 2M | 286.44M | 185.8M | 119.86M | 77.4M | 47.59M | 0 | 0 |
| Operating Income | 31.25M | 105.61M | 61.9M | -29.45M | -68.7M | -115.04M | -15.14M | -74.41M |
| Operating Margin % | 1.32% | 4.5% | 4.19% | -3.38% | -13.04% | -42.31% | -10.18% | -90.14% |
| Operating Income Growth % | - | 70.61% | 310.18% | 57.13% | 40.29% | -659.65% | 79.65% | - |
| EBITDA | 99.43M | 160.12M | 78.99M | -19.94M | -61.22M | -110.97M | -14.09M | -74.15M |
| EBITDA Margin % | 4.2% | 6.82% | 5.35% | -2.29% | -11.62% | -40.81% | -9.47% | -89.82% |
| EBITDA Growth % | -24.83% | 102.7% | 496.18% | 67.43% | 44.83% | -687.73% | 81% | - |
| D&A (Non-Cash Add-back) | 68.18M | 54.5M | 17.09M | 9.52M | 7.47M | 4.08M | 1.06M | 260K |
| EBIT | 31.66M | 105.61M | 61.9M | -29.45M | -68.7M | -115.04M | -15.14M | -71.61M |
| Net Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | -10K | -369K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 10K | 369K |
| Other Income/Expense | -69.37M | 18.31M | 9.81M | 7.88M | 2.99M | 4.25M | -2.84M | 2.44M |
| Pretax Income | -38.12M | 123.92M | 71.71M | -21.57M | -65.71M | -110.8M | -17.99M | -71.97M |
| Pretax Margin % | -1.61% | 5.28% | 4.86% | -2.47% | -12.47% | -40.75% | -12.09% | -87.18% |
| Income Tax | -24.89M | -4.44M | -54.33M | 1.98M | -31K | -3.14M | 127K | 90K |
| Effective Tax Rate % | 65.28% | -3.58% | -75.76% | -9.16% | 0.05% | 2.83% | -0.71% | -0.13% |
| Net Income | -13.23M | 128.37M | 126.04M | -23.55M | -65.68M | -107.66M | -18.11M | -72.06M |
| Net Margin % | -0.56% | 5.47% | 8.54% | -2.7% | -12.46% | -39.6% | -12.18% | -87.29% |
| Net Income Growth % | -108.05% | 1.85% | 635.28% | 64.15% | 38.99% | -494.34% | 74.86% | - |
| Net Income (Continuing) | -13.23M | 128.37M | 126.04M | -23.55M | -65.68M | -107.66M | -18.11M | -72.06M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.06 | 0.51 | 0.53 | -0.11 | -0.32 | -0.58 | -0.51 | -2.07 |
| EPS Growth % | -112.61% | -3.77% | 581.82% | 65.63% | 44.83% | -13.73% | 75.36% | - |
| EPS (Basic) | - | 0.57 | 0.58 | -0.11 | -0.32 | -0.58 | -0.51 | -2.07 |
| Diluted Shares Outstanding | 228.36M | 258.23M | 236.81M | 209.34M | 204.52M | 186.78M | 35.35M | 34.76M |
| Basic Shares Outstanding | 228.36M | 224.96M | 215.94M | 209.34M | 204.52M | 186.78M | 35.35M | 34.76M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Regulatory compounding drug exposure
As reported in recent financial statements, HIMS experienced a sharp deceleration in top-line expansion, with year-over-year revenue growth falling to 3.8% in 2026Q1 from triple-digit peaks in early 2025, suggesting that the initial surge from new product launches may be reaching a saturation point.
The rapid revenue growth observed throughout 2024 and early 2025 appears to have hit a significant wall in the most recent quarter. Investors should monitor whether this slowdown reflects a fundamental cooling in demand for core offerings or if it is a temporary transition period as the company shifts its focus toward newer, potentially more complex product categories.
Based on the company's reported figures, gross margins have contracted significantly from a peak of 82.7% in 2023Q4 to 49.4% in 2026Q1, indicating that the cost of goods sold is rising faster than the company's ability to maintain premium pricing power in its current market.
The dramatic erosion of gross margin suggests that the shift toward compounded medications may be carrying higher production or supply chain costs than the legacy generic business. This trend implies that the company's competitive moat, previously supported by high-margin generic APIs, is currently facing structural pressure that could permanently alter the firm's profitability profile.
According to recent SEC filings, HIMS's operating income swung to a $16.5 million loss in 2026Q1, as SG&A expenses remained elevated at $331.7 million despite the significant deceleration in revenue growth, highlighting a lack of operational efficiency during this period of top-line stagnation.
The inability to scale operating expenses in line with revenue suggests that the company's aggressive marketing-led growth model is becoming increasingly inefficient. Without a clear path to reducing customer acquisition costs, the current cost structure appears to be a significant headwind to achieving sustainable, long-term operating profitability.
Analysis of the income statement reveals that the company's recent net loss of $92.1 million in 2026Q1, combined with the sharp margin contraction, raises questions about the long-term viability of the current growth-at-all-costs strategy, particularly if regulatory headwinds limit the compounding pharmacy segment's future potential.
Short-sellers may focus on the disconnect between the company's high-growth narrative and the recent reality of negative operating margins and declining gross profitability. The reliance on compounded GLP-1s introduces a binary regulatory risk that, if triggered, could leave the company with an unsustainable cost base and a diminished product value proposition.
Quick answers to the most common questions about buying HIMS stock.
For fiscal year 2025, Hims & Hers Health, Inc. (HIMS) reported total revenue of $2.35B. This represents a 2743.6% increase compared to $82.6M in 2019.
Hims & Hers Health, Inc. (HIMS) is profitable, generating $128.4M in net income for the fiscal year ending 2025 with a net profit margin of 5.5%.
Hims & Hers Health, Inc. (HIMS) reported an operating income of $105.6M, resulting in an operating profit margin of 4.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Hims & Hers Health, Inc. (HIMS) generated $1.73B in gross profit for the year, representing a gross profit margin of 73.8%. This demonstrates the company's core pricing power and production efficiency.