The company now expects full-year 2026 revenue of $3.13 billion–$3.15 billion and lowered adjusted core profit expectations to $257 million–$277 million.
- The company’s Q3 revenue rose 49% to $890.4 million from $599.0 million a year earlier, slightly missing consensus estimates near $892.77 million.
- Gross margin contracted to 57% from 74%, pressured by international expansion costs and a mix shift toward lower-margin branded offerings.
- CFO Yemi Okupe hinted at “several planned expansions to our platform in the fourth quarter.”
Shares of Hims & Hers Health Inc. fell 3% after hours on Monday after the telehealth provider reported a surprise third-quarter net loss, owing to a shift towards branded drugs in place of compounded ones, and reduced its full-year adjusted core profit guidance, raising investor concerns over softer near-term profitability despite solid revenue growth.
HIMS shares closed the regular session down 12% and extended losses after hours.
HIMS Reports Surprise Q3 Loss And Margin Compression
The company’s revenue rose 49% to $890.4 million from $599.0 million a year earlier, slightly missing consensus estimates near $892.77 million, according to data from Fiscal AI.
The company swung to a net loss of $33.0 million, or $0.14 per share, from net income of $15.8 million in the year-ago quarter. Analysts had expected a profit of roughly $0.06.
Gross margin contracted to 57% from 74%, pressured by international expansion costs and a mix shift toward lower-margin branded offerings, particularly GLP-1 weight-loss drugs, that began earlier this year.
Subscribers grew 13% to nearly 2.8 million in the quarter, while monthly revenue per average subscriber climbed 30% to $105. U.S. revenue advanced 21% to $657.1 million; rest-of-world revenue surged 321% to $233.3 million, underscoring the company’s overseas push.
HIMS Guidance Reduced
The company now expects full-year 2026 revenue of $3.13 billion–$3.15 billion and lowered adjusted core profit expectations to $257 million–$277 million, implying an 8%–9% margin. The company had previously guided to revenue in the range of $3.1 billion to $3.3 billion and adjusted core profit of $275 million to $325 million.
Fourth-quarter guidance calls for revenue of $875 million–$895 million and adjusted core profit of $70 million–$90 million, implying an 8%–10% margin.
CFO Yemi Okupe said that the company is making “deliberate strategic decisions to position Hims & Hers for durable, multi-year growth.”
“We delivered those (Q3) results while intentionally pacing marketing spend ahead of several planned expansions to our platform in the fourth quarter, which we expect will set us up well heading into 2027,” they said, hinting at increased near-term investments.
The Pivot To Branded Drugs
Hims & Hers has accelerated a strategic shift away from higher-margin compounded GLP-1 medications toward FDA-approved branded weight-loss drugs, a pivot that began in earnest with its March 2026 collaboration with Novo Nordisk to bring Ozempic and Wegovy onto the platform while winding down broad marketing of compounded alternatives.
Earlier this month, the company also announced an agreement allowing patients to access Eli Lilly & Co’s Zepbound and Foundayo directly on the Hims & Hers platform at self-pay prices. The company has paired the branded push with rapid international expansion primarily through acquisitions of local digital-health platforms.
How Did HIMS Retail Traders React?
On Stocktwits, retail sentiment around HIMS stock jumped from 'neutral' to 'extremely bullish' territory over the past 24 hours, while message volume jumped from 'high' to 'extremely high' levels.
A Stocktwits user expressed disappointment at the earnings miss.
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Another user said that management needs to explain its interest in new clinical areas such as peptides, and its marketing spend and acquisition rationale.
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HIMS stock has dropped 29% year-to-date.
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