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Hims & Hers Health’s Eucalyptus Deal Could Expand Its Global Weight-Loss Footprint!

Hims & Hers Health reported a 4% year-over-year revenue growth to $608 million in the first quarter of 2026, with subscribers increasing 9% to nearly 2.6 million. Adjusted EBITDA reached $44 million, reflecting a 7% margin. The company underscores a strategic pivot in its weight loss specialty during the quarter, prioritizing branded products such as Novo Nordisk’s Wegovy and Eli Lilly’s offerings while discontinuing compounded products. This pivot led to approximately $33 million in restructuring costs, including a $28 million write-down primarily related to the obsolescence risk of compounded GLP-1 supply chain assets, impacting gross margins by roughly five percentage points. GAAP net income declined to a loss of $92 million, influenced by these one-time charges alongside transaction and legal costs. Despite these near-term financial headwinds, operational cash flow amounted to $89 million with $53 million in free cash flow, supported by available cash and short-term investments of $751 million.