Key Takeaways
- Hims & Hers shares rose 4% today after the company launched online weight-loss care for men in Germany.
- Germany suits Hims’ cash-pay model because statutory insurance there generally doesn’t cover weight-loss drugs, but no financial details came with the launch.
- Gross margin fell to 64% in the second quarter of 2026 from 76% a year earlier, and the company counts growth abroad among the reasons.
- The third-quarter report will show whether gross margin has stopped falling.
Hims & Hers Health (HIMS) stock is up 4% today after the company launched online weight-loss care for men in Germany.
The market suits Hims’ model. What’s still unclear is what it does for a gross margin that keeps shrinking.
What exactly happened
German patients start with a private online consultation. That can lead to a prescription from an EU-licensed clinician, with ongoing support after it. Patients who need in-person care are sent to local providers.
Hims gave a few figures to back the launch:
- Nearly one in five German adults has obesity, and more than six in ten men are overweight.
- Statutory insurance generally doesn’t cover weight-loss drugs, so people often pay for them themselves.
- In surveys Hims cited, 42% of adults said they’d rather not talk about their weight with a general practitioner.
No financial details came with it.
A natural fit for cash pay
Hims already had a foothold here. In July 2025 it bought Zava, a digital health platform registered in Germany, for $258 million including contingent payments.
That out-of-pocket point matters. Hims runs on cash-pay subscriptions, and that model has driven fast growth at home: revenue nearly tripled from 2023 to 2025, and analysts expect more…
Analysts expect growth to slow to about 12% by 2028, so new markets have real work to do. A launch with no numbers attached shouldn’t move those estimates yet, though.
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Margins are the harder part
Hims’ gross margin slid from 82% in 2023 to 73.8% in 2025. This year’s switch from compounded GLP-1s to branded versions has made it worse…
In the second quarter of 2026 it was down to 64%, from 76% a year earlier, and Hims swung to an $86.3 million net loss.
Hims’ latest quarterly report blames the drop mainly on shipping and fulfillment costs in the weight-loss business, and it also names growth abroad as one of the reasons. So far, expanding overseas has cost margin.
The legal overhang is still there too. The FTC sued Hims in late July over its privacy and billing practices, and shareholders have filed a class action.
My take: Germany is a smart market for Hims to go after, and it should help keep growth going. But I’d expect it to cost margin before it adds any, so today’s pop looks early. The third-quarter report, due in the next few weeks, will show whether they’ve managed to stop the bleeding.
So what is Hims & Hers stock actually worth?
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