Hims & Hers Health's trailing-twelve-month gross margin stood at 68.4% in the quarter to 30 June 2026. The erosion did not stop at gross profit: operating margin was down 12.2 percentage points year over year over the same period, and the compression arrived as revenue growth itself slowed to the weakest pace in the company's reporting history.
Revenue growth slows to a new low
Revenue grew 28.0% on a trailing-twelve-month basis to $2.6 billion, down 4.8 percentage points from the prior quarter's reading. That growth rate sits below every quarter in the company's own trailing-twelve-month history, which has ranged from 32.8% to 94.4%, a 0.00th percentile reading. More detail on the company's growth trajectory is in Hims & Hers' full company analysis.
| Metric | TTM value | Change |
|---|---|---|
| Revenue growth (YoY) | 28.0% | 4.8pp below prior quarter |
| Gross margin | 68.4% | n/a |
| Operating margin | -6.0% | down 12.2pp YoY |
| Net margin | -5.5% | down 15.1pp YoY |
| Free-cash-flow margin | 2.4% | down 3.5pp YoY |
| Capex as % of revenue | 7.8% | capex up 42.0% YoY |
Margin compression cascades through the income statement
The erosion compounds further down the income statement. The filings do not break out which expense lines drove the additional drop below the gross-margin line.
How unusual is this, historically?
Context tempers how unusual the operating-margin reading looks on its own. The company's trailing-twelve-month operating margin has ranged from -42.9% to 6.2% over its reporting history, and the current -6.0% level sits at the 50th percentile of that range. The business has recorded far deeper quarterly losses before; what stands out now is that the deterioration is happening alongside the slowest revenue growth on record, not that the loss itself is unusually large.
Profitability remains negative for the quarter
Results for the period reflect a net loss of −$142.0 million on a trailing-twelve-month basis, with net margin at −5.5%, underscoring how far profitability has slipped even as the top line kept expanding.
Cash flow has not fallen as far as margins have
Cash flow shows a narrower version of the same divergence. TTM operating cash flow was almost flat, up 0.7% year over year to $263.5 million, while capital expenditure grew 42.0% to $201.9 million, equal to 7.8% of revenue. The decline in free cash flow traces to heavier capital spending rather than to a collapse in cash collected from operations.
What it means for value
The margin story matters most for free cash flow, the figure our discounted-cash-flow model uses as a direct driver of projected company value. The model holds growth and discount-rate assumptions fixed and isolates the FCF-margin input: if the past year's fall in free-cash-flow margin persists, the model's value falls 64.6%; each additional 1 percentage point decline in FCF margin lowers it by 51.6%. These are model values under stated assumptions, not a comparison with the share price.
