TenQ

The Hims & Hers Health story

Hims & Hers Health provides subscription telehealth care and prescriptions, with the central question whether its shift toward branded weight loss medicines and international expansion can restore profitability.

Written from Hims & Hers Health's own filings with the SEC, and rewritten when it publishes a new earnings release. Updated 2026-09-30.

  • $28.78share price, last close
  • $6.7Bmarket value
  • 10/36TenQ Score checks passed

The story in brief

  • More subscribers, more spending. In the quarter to June 2026, subscribers reached 2.9 million, up 19%, while monthly revenue per average subscriber rose 21% to $92.
  • Growth did not protect profits. Revenue rose 38% to $753.2 million in the quarter to June 2026, but gross margin fell to 64% from 76% in the comparable period.
  • Expansion carries financial demands. Following the June 2026 completion of Eucalyptus, Hims & Hers had $1.4 billion of total debt against $841 million of cash and short-term investments.

What drives the business

  • Hims & Hers builds recurring revenue around ongoing care for conditions including hair loss, sexual health, mental health and weight loss, connecting patients with licensed providers and fulfilling most prescriptions through its own pharmacies.
  • Its integrated platform combines consultations, prescribing, pharmacy fulfillment and laboratory testing, while customers can cancel or pause subscriptions between billing periods.
  • The March 2026 agreement with Novo Nordisk brings Ozempic and Wegovy to the platform as the United States weight loss business shifts toward FDA-approved medicines and limits access to compounded GLP-1 medications.
  • The acquisition of Eucalyptus, completed in June 2026 after Zava and Livewell, expanded its international reach, while United States revenue grew 16% in the quarter to June 2026.
  • Marketing remains a substantial cost of attracting customers, consuming 35% of revenue in the quarter to June 2026 compared with 52% in the quarter to March 2021.

What the price assumes

TenQ's reverse DCF does not produce a measurable growth assumption because there is no positive operating earnings base, although free cash flow over the last twelve months was $62 million.

At $28.78 per share and a market value of $6.7 billion, the valuation depends on future profitability, while revenue growth over the last twelve months was 28.0% against an annual pace of 64.5% over the last three years.

The free cash flow yield of 0.9% falls short of TenQ's check for a yield above 3%, leaving little cash generation relative to the market value despite the revenue growth.

What could change the story

  • The weight loss transition produced restructuring charges, and further charges could accompany the move away from broadly available compounded GLP-1 medications.
  • Legal contingencies, acquisition costs and restructuring charges contributed to a net loss of $86.3 million in the quarter to June 2026, compared with net income of $42.5 million in the quarter to June 2025.
  • Adjusted EBITDA excludes these categories of costs, so its positive result does not establish that the business has returned to accounting profitability.
  • TenQ's financial health checks passed 1 of 6, with near-term liquidity of 0.93 against its 1.50 benchmark and debt exceeding cash and short-term investments.
  • Stock-based pay of $154 million exceeded free cash flow of $62 million over the last twelve months, while the share count increased 26.3% over the last three years.

What to watch next

  • For the third quarter of 2026, management expects revenue of $880 million to $900 million and Adjusted EBITDA of $75 million to $95 million, reflecting a margin of 9% to 11%.
  • For full year 2026, management expects revenue of $3.1 billion to $3.3 billion and Adjusted EBITDA of $275 million to $325 million, reflecting a margin of 9% to 10%.
  • Subscriber growth, monthly revenue per average subscriber and domestic revenue growth will show how customers respond to the revised weight loss offering, while international results will show Eucalyptus's contribution.
  • Gross margin, operating cash flow and additional restructuring charges will help distinguish operating improvement from growth supported by acquisitions and adjusted earnings exclusions.

Sources

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