Hims & Hers Health raises 2023 revenue outlook after strong Q2 growth despite margin drop

Hims & Hers Health reported a 38% revenue increase in Q2 to $753.2 million and raised its full-year revenue forecast to $3.1–$3.3 billion. Despite a six-point drop in gross margin to 64%, the company is evolving into a distribution platform for branded weight-loss drugs, which boosts revenue but compresses margins. The company is also focusing on manufacturing peptides, a weight-adjacent product, to reduce reliance on partnerships. The positive outlook and strategic shifts suggest potential upside following a recent post-earnings stock decline.