Hims & Hers Swings to Q3 Loss as Gross Margin Falls to 57%, Cuts 2026 EBITDA Outlook

HIMS reported third-quarter revenue of $890.4 million, up 49% from a year earlier but fractionally below the roughly $892.9 million consensus, and a GAAP loss of $0.14 per share against analyst expectations for a $0.06 profit. Net loss was $33.0 million, compared with net income of $15.8 million a year earlier, according to the company's earnings release. Zacks, which uses its own adjusted basis, put earnings at $0.03 per share against a $0.07 consensus.

Gross margin was the core problem: it fell to 57% from 74% in the year-ago quarter as the company expanded into branded weight-loss drugs and international markets. Rest of World revenue jumped 321% to $233.3 million while domestic revenue grew 21% to $657.1 million. Adjusted EBITDA rose to $82.4 million from $78.4 million, but the adjusted EBITDA margin slipped to 9% from 13%.

The outlook drew the sharper reaction. Hims narrowed 2026 revenue guidance to $3.13 billion to $3.15 billion from $3.1 billion to $3.3 billion, below the $3.21 billion analysts expected, and cut its adjusted EBITDA range to $257 million to $277 million from $275 million to $325 million. Fourth-quarter revenue guidance of $875 million to $895 million compares with a consensus of about $955.1 million. Subscribers reached 2.79 million, short of the 2.99 million analysts expected.

Shares fell more than 3% in Tuesday premarket trading after the results. That followed an 11.8% decline in Monday's regular session to $22.94, which took place before the 4 p.m. release. What to watch: whether gross margin stabilizes as the international and branded weight-loss mix grows, and whether the platform expansions the CFO cited for pacing fourth-quarter marketing spend restore subscriber growth.