Hims & Hers sets aside about $60 million for the FTC case

Hims & Hers has booked about $60 million to cover the Federal Trade Commission's case against it, a figure the company disclosed in its quarterly report filed August 10 ^[1].

The note to the second-quarter 10-Q says the company recorded a legal contingency accrual of approximately $60 million as of June 30, 2026, for the FTC matter ^[1]. Accrued legal contingencies across the company totaled $62.5 million at that date, compared with $0 at the end of 2025 ^[1]. Three months earlier, Hims had disclosed a $15 million figure, according to CNBC ^[1]. An AInvest analysis put the second-quarter legal charge alone at $47.5 million ^[2]. Hims told investors the accrual could change materially in either direction ^[1].

The same filing lays out the dispute's paper trail. Hims confirmed it received a civil investigative demand from the FTC in October 2023 ^[1]. It said settlement negotiations did not succeed ^[1]. It also disclosed a consumer class action, Doe v. Hims & Hers Health, Inc., filed in the same court after the FTC suit, brought under the federal wiretap statute and two California privacy laws ^[1]. A separate securities class action covers a class period reaching back to August 2025 ^[2].

The FTC filed its complaint on July 29 in the Northern District of California alongside the Utah Division of Consumer Protection and the People of the State of California ^[2]. The document runs 48 pages and nine counts ^[1]. The agency says Hims handed lists of certain customers to advertising platforms and ran tracking code that reported actions such as adding an item to a cart or finishing a purchase ^[1]. Three counts are about billing rather than data: the FTC alleges customers were charged before they spoke with a provider and that canceling took extra clicks inside an order menu ^[1].

Hims disputes all of it, calling the lawsuit baseless and saying it disregards evidence the company supplied during the investigation ^[2]. CEO Andrew Dudum told CNBC the agency wanted a headline more than an agreement ^[1][2]. The stock fell about 15% to $25.00 on July 29 and closed at $31.10 on August 19 ^[1].

The case is unfolding as Hims' profit picture shifts. Second-quarter revenue was $753 million, up 38% from a year earlier ^[2], with 2.891 million subscribers, up 19% ^[1], and $92 in monthly revenue per average subscriber, up 21% ^[1]. Gross margin fell from 76% to 64% as the company moved from compounded GLP-1 weight-loss drugs to branded ones through a Novo Nordisk partnership ^[1][2]. The quarter ended with an $86.3 million loss ^[1].

Why it matters for patients

Hims & Hers fills prescriptions for conditions people often keep quiet, weight loss among them, so the sign-up flow the FTC is challenging is the same one its customers use ^[1]. The billing allegations describe charges arriving before a consultation and a cancellation process that takes several steps to find ^[1][2]. The government is asking a court to stop the practices permanently, which could change how the company enrolls and bills subscribers if the case succeeds ^[1][2].

A 2022 audit by STAT and The Markup tested 50 telehealth sites and found 25 of them, Hims among them, reporting cart adds or checkouts to at least one large technology company ^[1]. The FTC's complaint does not rely on the Health Breach Notification Rule, the theory the agency used against GoodRx in 2023 ^[1].

What happens next

The plaintiffs want a permanent injunction, disgorgement and civil penalties of up to $2,500 per violation under two California statutes ^[1][2]. No trial date has been reported. The FTC authorized the complaint on a 2-0 vote, with two of the five commissioner seats filled ^[1]. Whether the matter settles or goes to trial has not been disclosed, and Hims says its $60 million estimate could move materially ^[1].