Hims & Hers Health

Thesis

Written 2026-08-23.

Hims & Hers has built the brand people actually think of when they think of telehealth, and it is still growing about 40% after a year of being hit from several directions at once. I bought it after the dip because I think the damage is to the share price rather than to the business.

Q2 2026. Revenue of more than $753m, up close to 40%, with 300,000 net new subscribers added in that quarter and international revenue of $131m. Full-year guidance was raised to about $3.3bn. A company under this much pressure is not supposed to be adding subscribers at that rate.

The brand is the moat, and in this category that is not a weak statement. Telehealth is a business of trust and recall — people buy from the name they have heard of for things they would rather not discuss with a stranger. Hims spent years and a great deal of money becoming that name. The catalogue keeps widening, and each new condition is sold into a subscriber base that already exists.

On the Novo Nordisk situation, the facts are better than the headlines were. Novo sued over the compounded version and then voluntarily dismissed all claims without prejudice on 9 March 2026, with the court reserving the right to allow a refiling. Meanwhile the commercial relationship has been a tailwind rather than a wound, with the Wegovy pill launch going well. That is close to the good outcome, and it is not how the episode was reported at the time.

What I am watching

This is the position with the most genuinely unresolved problems, and I would rather write them down than discover them later.

The quarter was a GAAP loss, and I should not skip past that. Despite $753m of revenue, Q2 produced an $86.3m net loss, driven by a $62.5m legal contingency charge. Growth this fast alongside a loss that size means the legal position is now a financial line item, not background noise.

The FTC case is the live one. A complaint was filed on 29 July 2026 alleging the sharing of health data with Meta and Snap, and the company says it will defend vigorously. Damages are survivable at this size. What would matter more is a remedy that constrains how a direct-to-consumer health business is allowed to target and measure its advertising, because that is the machine the 40% growth runs on.

The compounding door has closed. The FDA removed Wegovy from its shortage list in February 2026, which ended the basis on which compounders could make semaglutide at scale. That was a real revenue source and it is gone; what replaces it has to be the commercial relationship and the rest of the catalogue.

"Without prejudice" means it can come back. The Novo dismissal is good news with a reservation attached, and I am treating it as a risk that has been deferred rather than removed.

What would make me wrong

• Subscriber additions slowing while legal charges keep recurring.
• An FTC outcome that reaches how the company advertises or targets, rather than one that costs money.
• Novo refiling, or the commercial relationship deteriorating.
• Growth outside the weight-loss category failing to cover what compounding used to contribute.

Latest movements

• 2026-08-20 — Opened at $32.41.