Q1 2026 earnings analysis

Key metrics

EPS_consensus

$0.03

FY_adj_EBITDA_guidance

$275-350 million

FY_guidance

$2.8-3.0 billion

Q2_guidance

$680-700 million

Adj_EBITDA

$44.3 million

Adj_EBITDA_prev

$91.1 million

Adj_EPS

-$0.40

After-hours change

-10.5%

After-hours price

$26.08

Free cash flow

$53 million

Gross margin

65%

Previous gross margin

73%

Net loss

$92.1 million

Revenue_Q1

$608 million

Revenue growth (YoY)

+4%

Revenue miss

-1.4%

Short interest change

-9.5%

Short interest (%)

30.66%

Short interest (shares)

63.16 million

Subscriber growth (YoY)

+9%

Subscribers

about 2.6 million

Summary

Q1 2026 results were a broad miss, but guidance beat expectations. Revenue was $608 million (a 1.4% miss, up 4% year on year). The net loss was $92.1 million (against a profit of $49.5 million a year earlier, a swing from profit to loss). Adjusted EPS was -$0.40 (expected: $0.03). Gross margin was 65% (73% a year earlier). Adjusted EBITDA was $44.3 million ($91.1 million a year earlier). Subscribers were about 2.6 million (+9% year on year). Free cash flow was $53 million, the only bright spot. The core reason for the loss: after compounded semaglutide was withdrawn from sale, HIMS switched to branded Wegovy/Zepbound, and sharply higher procurement costs eroded gross margin, on top of restructuring charges. Q2 revenue guidance is $680-700 million (consensus $659 million, 3-6% higher). Full-year revenue guidance was raised to $2.8-3.0 billion (+19% to 28% year on year), full-year adjusted EBITDA guidance is $275-350 million, and the 2030 revenue target of $6.5 billion or more is maintained. FINRA short interest data (30 Apr): 63.16 million shares sold short (previous period 69.77 million, -9.5%), equal to 30.66% of the float (from a peak of 84.96 million to 63.16 million, a cumulative fall of 25.6% and the fourth consecutive decline). After-hours reaction: $26.08 (-10.5%). Our view: Q1 was the most painful quarter of the transition. Stable free cash flow shows the core operations have not deteriorated, and the retreat by shorts is clearly continuing. The real test is whether Q2 revenue delivers $680-700 million.