Hims & Hers: A $92 Million Loss, a New Global Footprint, and a Stock Trading Below Most Analyst Targets

Hims & Hers completes Eucalyptus deal, becomes top consumer health platform, but Q1 loss of $92.1M from restructuring drags stock 60% below high; analysts average target $28.70.

Hims & Hers Health has completed its acquisition of Australian telemedicine firm Eucalyptus, a deal it bills as creating the world’s largest consumer health platform. But the price of that expansion is already visible in the first-quarter numbers: a net loss of $92.1 million against a year-ago profit of $49.5 million, dragged down by $33.5 million in restructuring and one-time costs. The stock, meanwhile, closed at $27.75 on the day the primary article was written — more than 60% below its 52-week high of $70.43 and below the average analyst price target of $28.70.

The Eucalyptus Deal Reshapes the Financing Picture

To fund the cross-border push, Hims & Hers modified its revolving credit facility on May 29, 2026, adding a transitional compliance period for the acquisition and expanding permitted investments in non-U.S. subsidiaries. That sits alongside the $1 billion in convertible notes issued in May 2025 and due in May 2030, which are earmarked for international growth, personalised care initiatives and artificial intelligence investments.

The Eucalyptus deal builds on earlier acquisitions — ZAVA and Livewell had already given the company a foothold in the U.K. and Canada. Australia is now live, and Hims & Hers also operates in France, Germany, Ireland, Spain and Japan. The company says it is now the largest consumer health platform globally by revenue.

Analyst Skepticism Has Not Lifted

Leerink analyst Michael Cherny maintained his “Market Perform” rating on June 2, with a $25 price target — roughly 9.1% below the session’s close of $27.51. Of the 17 analysts covering the stock, the consensus is “Hold”: four buys, 11 holds and two sells. The spread of targets shows the uncertainty: Canaccord Genuity sits at $32, Citigroup at $28, JPMorgan at $33 and Needham at $35. The average of $28.70 leaves limited upside, and the after-hours slip to $27.29 on secondary trading volume of roughly 14.7 million shares did little to reassure.

Revenue Growth Continues, But Margins Slide

First-quarter 2026 revenue came in at $608.1 million, up 4% from $586.0 million a year earlier. Subscriber growth was healthier: nearly 2.6 million users, a 9% increase. But profitability was under severe pressure. The gross margin contracted to 65% from 73% a year ago, as weight-management offerings, laboratory services and the international business remain at an earlier stage of scaling. Adjusted EBITDA fell to $44.3 million from $91.1 million, and the operating cash flow of $89.4 million and free cash flow of $53 million were solid but not enough to offset the GAAP loss.

Management Guidance Points to a Stretched Timeline

For the second quarter of 2026, management expects revenue between $680 million and $700 million, representing growth of 25% to 28%. The full-year forecast was raised to a range of $2.8 billion to $3.0 billion, with an adjusted EBITDA margin of roughly 11%. By 2030, the company aims for revenue of $6.5 billion and adjusted EBITDA of $1.3 billion. However, any improvement to the gross margin is not expected until the second half of 2026, leaving near-term profitability under a cloud.

In the year ended 2025, Hims & Hers posted revenue of $2.35 billion — up 59% — and more than 2.5 million subscribers, with adjusted EBITDA of $318 million. That track record provided the basis for the current expansion, but the sequential decline in margins has made the bull case harder to defend.

Shareholder Meeting Brings Board Changes

At a virtual annual meeting scheduled for June, shareholders will vote on nine director candidates, ratify KPMG as auditor and approve executive compensation. One new nominee is Kofi Amoo-Gottfried, formerly a senior marketing executive at DoorDash and Meta. Two current directors are stepping down, shrinking the board to nine. Dr. Pat Carroll will remain as global chief medical officer.

Insider activity has been a headwind: net insider sales totalled $5.5 million over the past three months. With the stock languishing and the market looking for sustained margin expansion, the success of the Eucalyptus integration — and the speed at which international operations turn profitable — will determine whether the valuation gap can close.