Hims & Hers Is Building AI into Its Consumer Healthcare Business

Hims & Hers entered the second half of 2026 with revenue growth accelerating while profitability remained under pressure. Second-quarter revenue rose 38% year over year to $753.2 million, while the company reported an $86.3 million net loss, compared with net income of $42.5 million a year earlier. Gross margin fell to 64% from 76%, while the company raised its full-year revenue guidance to $3.1 billion-$3.3 billion.

The company was also changing the economics of its weight-loss business. In March, Hims & Hers announced an agreement with Novo Nordisk to offer branded GLP-1 medications, including Wegovy, while committing to stop advertising compounded GLP-1 products to the mass market. The shift came after months of controversy and regulatory scrutiny around compounded versions of weight-loss drugs.

By the second quarter, Hims & Hers had added more than 300,000 subscribers, taking its global subscriber base to nearly 2.9 million. Monthly revenue per average subscriber also rose 21% year over year to $92, while international revenue increased more than 17-fold to $131.4 million, helped by the acquisition of Eucalyptus.

At the same time, Hims & Hers was expanding its use of AI across customer support, clinical care, treatment and follow-up. The company says the technology can improve the customer experience while reducing some of the costs associated with serving a growing subscriber base.

AI Is Moving Into The Care Workflow

Hims & Hers had begun outlining this approach before the second-quarter results. In April, Chief Technology Officer Mo Elshenawy described AI as an “operating system for care,” with the technology embedded across intake, triage, clinical documentation, follow-up and adherence. The company says clinicians remain responsible for clinical judgment and accountability.

In July, Hims & Hers began a phased rollout of an AI-native care experience for Hers weight-loss customers. On the second-quarter earnings call, Elshenawy said customers using the new experience were sending three times as many messages, while AI was answering 80% of their questions. The company also reported that AI reduced non-clinical tasks handled by support teams by nearly 50%.

Hims & Hers CFO Yemi Okupe says the company expects its AI investments to pay back within 12 to 18 months. The company plans to use some of the resulting efficiencies to improve the weight-loss experience through lower prices or additional tools.

The reduction in routine support work is one example of the operational gains healthcare companies are pursuing with AI.

Hims & Hers is also reducing its reliance on external AI support tools. Elshenawy says the company's internal developments have already meaningfully reduced its use of agentic AI customer-support vendors, with the company eventually expecting to eliminate that reliance. The company says its internal AI tools are governed by clinical protocols and guidelines developed by its medical teams, with interactions designed to be traceable and auditable.

Hims & Hers reported $60.3 million in adjusted EBITDA in the second quarter, but operating cash flow was negative $35.9 million and free cash flow was negative $68.2 million. The company also expects gross margins to remain below historical levels as branded weight-loss products and international revenue become a larger part of its business.

Patient Data Is Becoming Part Of The AI Strategy

Hims & Hers is also applying AI to laboratory data.

In May, the company launched Labs AI, an AI care agent designed to help customers interpret laboratory results and understand what the information could mean for their care. Hims & Hers says the system uses its medical knowledge base and clinical protocols and does not diagnose customers.

That brings laboratory results into the same Hims & Hers workflow used for consultations, prescriptions and follow-up. During the second-quarter call, CEO Andrew Dudum said the company is working toward combining wearable data, laboratory results, genetics, preventive screening and treatment information into a single health experience. The proposed system would connect doctors, specialists, pharmacists, coaches and AI agents around an individual customer.

The move follows similar efforts to use AI to interpret longitudinal laboratory information, including Labcorp and OpenAI's work on patients' lab histories.

Hims & Hers is expanding its physical operations alongside the technology. It completed its acquisition of Eucalyptus in June, expanding its international operations across markets including the U.K., Australia, Germany, Japan and Canada. Eucalyptus contributed about $40 million of second-quarter revenue, according to management.

Management also identified testosterone, hormone health, dermatology, sexual health, reproductive health and other specialties as areas where the company can offer its services in international markets. Testosterone has become one of the company's fastest-growing specialties outside weight loss, with management expecting it to become its sixth U.S. specialty to reach a $100 million annual revenue run rate.

AI Is Being Tied To The Economics Of Expansion

Hims & Hers is expanding beyond weight loss into additional areas of consumer healthcare. Management says treating multiple conditions through the same service can increase cross-selling opportunities while giving the company more information about customer needs.

Consumers are also increasingly using digital tools and AI before consulting doctors.

Okupe says Hims & Hers expects AI-driven efficiencies to be reinvested in lower prices or additional weight-loss tools and in international growth. Management expects the international business to generate at least $600 million of revenue in 2026 while operating near break-even on an adjusted EBITDA basis.

The company expects its AI investments to pay back within 12 to 18 months.

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