Hims & Hers Shares Slide After Surprise Q3 Loss, 57% Gross Margin and Lower Profit Outlook

Shares of Hims & Hers Health Inc. (NYSE: HIMS) were lower in premarket trading on Tuesday, Nov. 10, 2026, after the telehealth company reported an unexpected third-quarter net loss, a sharp drop in gross margin and a lower full-year profit outlook. The results, released after the market close on Monday, Nov. 9, followed a 12% decline in the stock during Monday's regular session.

Third-quarter results

According to the company's earnings release, revenue for the quarter ended Sept. 30 rose 49% from a year earlier to $890.4 million, up from $599.0 million. U.S. revenue grew 21% to about $657.1 million, while revenue from the rest of the world more than quadrupled, rising 321% to about $233.3 million from $55.5 million a year earlier.

The company swung to a net loss of $33.0 million, compared with net income of $15.8 million in the third quarter of 2025. Gross margin fell to 57% from 74% a year earlier. Adjusted EBITDA was $82.4 million, compared with $78.4 million a year ago. Net cash provided by operating activities was $65.4 million, down from $148.7 million, and free cash flow was $26.0 million, compared with $79.4 million in the prior-year quarter.

Subscribers rose 13% from a year earlier to nearly 2.8 million. A report published on Yahoo Finance by Stocktwits said monthly revenue per average subscriber climbed 30% to $105. The loss amounted to $0.14 per share, while analysts had expected a profit of roughly $0.06 per share, the report said. Revenue was slightly below a consensus estimate near $892.8 million cited from Fiscal AI data.

Guidance lowered for profit

For the full year 2026, Hims & Hers now expects revenue of $3.13 billion to $3.15 billion and adjusted EBITDA of $257 million to $277 million, an adjusted EBITDA margin of 8% to 9%. The Stocktwits report said the company's previous guidance called for revenue of $3.1 billion to $3.3 billion and adjusted EBITDA of $275 million to $325 million, meaning the revenue range was narrowed and the profit range was reduced.

For the fourth quarter, the company guided to revenue of $875 million to $895 million and adjusted EBITDA of $70 million to $90 million, an adjusted EBITDA margin of 8% to 10%.

Chief Financial Officer Yemi Okupe said the company made "deliberate strategic decisions to position Hims & Hers for durable, multi-year growth." He said the results were delivered while the company was "intentionally pacing marketing spend ahead of several planned expansions to our platform in the fourth quarter."

What is behind the margin decline

The lower gross margin reflects international expansion costs and a shift in product mix toward lower-margin branded medications, particularly GLP-1 weight-loss drugs, according to the Stocktwits report. The company has been moving away from higher-margin compounded GLP-1 products. In March 2026 it began a collaboration with Novo Nordisk to offer Ozempic and Wegovy on its platform while winding down broad marketing of compounded alternatives, and earlier this month it announced an agreement allowing patients to access Eli Lilly's Zepbound and Foundayo through its platform at self-pay prices.

An earnings call summary published by Investing.com said subscribers fell by about 100,000 from the second quarter, a decline management described as deliberate. The company also raised its full-year international revenue outlook to at least $650 million from a previous target of $600 million and said international sales could reach a $1 billion annual run rate in 2027. Cash and investments stood at $710 million at the end of the quarter, according to that summary.

Stock reaction and analyst moves

Hims & Hers shares closed Monday's regular session at $22.94, down about 11.8% from a prior close of $26.00, and fell further in after-hours trading after the report. A premarket market report published on Yahoo Finance said the stock fell about 2.5% in early premarket trading on Tuesday. The Stocktwits report said the shares were down 29% year to date before the after-hours move.

Investing.com reported that Needham lowered its price target on the stock to $32 from $42 while keeping a Buy rating. The brokerage pointed to revenue and adjusted EBITDA that came in below consensus, a pullback in marketing spending, a deferral of weight-loss revenue and a sequential decline in subscribers.

The same premarket report noted that investors were watching the company's upcoming Peptides+ program, which Hims plans to launch by the end of November with offerings including sermorelin, glutathione, NAD+ and B12 through prescriptions from independent clinicians and licensed pharmacies. The company has also appointed Stanford neuroscientist Andrew Huberman to its board; he will advise on science and brand marketing.