Hims & Hers Health raised its revenue projections for the year, though higher costs swung it to a loss in the second quarter.

The telehealth platform said it now projects $3.1 billion to $3.3 billion in revenue for the year, up from a previous target for $2.8 billion to $3 billion. The company also lifted its outlook for a key adjusted earnings metric.

Chief Financial Officer Yemi Okupe said Hims & Hers expects its domestic business to keep accelerating through the back half of the year. It has even more conviction now in its ability to achieve a 2030 target for at least $6.5 billion in revenue, Okupe said.

For the third quarter that started July 1, Hims & Hers expects $880 million to $900 million in revenue. That tops current analyst estimates for $792 million, according to FactSet.

In the second quarter, the company posted a loss of $127.9 million, or 37 cents a share, compared with a profit of $43.5 million, or 17 cents a share, in the same quarter a year earlier. Analysts had been looking for a loss of just 5 cents a share.

The swing to a loss came despite revenue climbing 38% to $753.2 million, pushing past analyst forecasts for $699 million. The company's subscriber count jumped 19% to 2.89 million, while monthly revenue per average subscriber rose 21% to $92.

But the cost of revenue more than doubled year over year to $272.4 million, puncturing the company's gross margin. Total operating costs were up 48%.

Hims & Hers is getting hit with restructuring charges linked to as strategic shift in the U.S. weight loss segment toward branded GLP-1s and more limited compounded offerings. The costs include inventory write-downs, third-party costs, and non-recurring employee compensation charges.

The report comes after the company was sued by the Federal Trade Commission for alleged misuse of users' information with third-patty advertising platforms. Hims & Hers is disputing the claims and said it would defend itself in court.