Hims & Hers Grew 38%. It Also Booked $62.5 Million in FTC-Linked Charges.

Hims & Hers Health's second-quarter revenue rose 38 percent year over year, to $753.2 million from $544.8 million, and the company raised its full-year revenue guidance to a range of $3.1 billion to $3.3 billion. That much matches the headline in its August 10 release. The same filing also shows the company swung from $42.5 million in net income a year earlier to an $86.3 million net loss, a reversal that traces less to the business slowing than to a lawsuit.

The loss follows a jump in legal contingency accruals: $47.5 million in the second quarter alone, bringing the first-half total to $62.5 million. On the August earnings call, chief financial officer Yemi Okupe tied the charge directly to "recent litigation with the FTC," grouping it with roughly $81 million in non-recurring costs that also covered Eucalyptus acquisition expenses and a restructuring of the weight-loss specialty.

What the FTC alleges

The Federal Trade Commission, joined by California and Utah, sued Hims & Hers on July 29 in federal court in the Northern District of California, after what Okupe called nearly three years of cooperation with the agency's investigation and months of failed settlement talks. The complaint alleges the company shared customers' health information with advertising platforms including Meta and Snap through tracking pixels, despite telling users their medical details would stay private. It also alleges Hims & Hers locked customers into prescription plans as soon as they submitted intake forms, before a clinician reviewed them, and buried the subscription cancellation option behind several steps.

"We are confident in our position and intend to defend it vigorously," Okupe said of the litigation.

Hims & Hers has separately called the FTC's allegations "baseless." Shares fell nearly 15 percent the day the suit was filed and were trading near $32 after the earnings release, well off the stock's 52-week high of $65.

What grew underneath the charges

Set the legal and restructuring costs aside and the underlying business did accelerate. Domestic revenue growth, excluding the June 2 acquisition of Australian telehealth group Eucalyptus, climbed to 16 percent year over year. International revenue, helped by Eucalyptus's roughly $40 million quarterly contribution, grew more than sixteenfold, with three international markets now running above $100 million in annualized revenue. Subscribers reached 2.89 million, up 19 percent year over year, and average monthly revenue per subscriber rose to $92 from $76.

General and administrative expense rose 145 percent, to $165.4 million from $67.3 million, largely on the litigation accrual and restructuring charges. For a subscription health business whose growth depends on customers trusting it with medical data, a regulator's complaint about exactly that, arriving in the same quarter as the international expansion, is the part of the release that a 38 percent headline leaves out.

Sources: Federal Trade Commission · Hims & Hers Investor Relations