It has been about a month since the last earnings report for Hims & Hers Health, Inc. (HIMS Quick QuoteHIMS - Free Report) . Shares have lost about 15.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Hims & Hers Health due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Hims & Hers Health, Inc. before we dive into how investors and analysts have reacted as of late.

Hims & Hers Posts Y/Y Q3 Earnings Decline, Margins Contract

Hims & Hers Health delivered an earnings per share of 6 centsin third-quarter 2025, down 81.3% from the year-ago period’s earnings per share of 32 cents.

HIMS’ Revenues in Detail

Hims & Hersregistered revenues of $598.9 million in the third quarter, up 49.2% year over year. The figure topped the Zacks Consensus Estimate by 2.6%.

Solid revenues from both the Online and Wholesale channels drove the top line.

Hims & Hers’ Segment Details

In the quarter under review, Online Revenues of $589.1 million reflected a surge of 50.1% year over year on a reported basis.

During the reported quarter, subscribers were 2.5 million (up 20.7% year over year). Per management, growth in subscribers was primarily driven by increased traffic to HIMS’ platform (through websites and mobile applications) as a result of its marketing activities, improved onsite and customer onboarding experiences, and consumer adoption of personalized offerings across its business.

Monthly online revenue per average subscriber increased 19.4% year over year to $80 in the third quarter, primarily resulting from subscriber uptake of personalized offerings across HIMS’ business, along with changes in product mix and the impact of a recent acquisition.

Wholesale Revenues totaled $9.9 million, up 9.9% year over year.

HIMS’ Margin Analysis

In the third quarter, Hims & Hers’gross profit increased 39.1% year over year to $442.1million. However, the gross margin contracted 536 basis points (bps) to 73.8%.

Marketing expenses increased 27.4% year over year to $232.2million, while technology and development expenses jumped 92.4% year over year to $40.6million. General and administrative expenses rose 80.8% year over year to $80.7million, while operations and support expenses increased 61.7% year over year to $76.8million. Operating expenses of $430.3million increased 45.6% year over year.

Operating profit totaled $11.8million, reflecting a 47.2% plunge from the year-ago quarter. The operating margin in the third quarter contracted 360 bps to 1.9%.

Hims & Hers’ Financial Position

Hims & Hersexited third-quarter 2025 with cash and cash equivalents and short-term investments of $629.7 million compared with $1.14 billion at the second-quarter end.

Cumulative net cash provided by operating activities at the end of third-quarter 2025 was $238.7 million compared with $164.7 million a year ago.

HIMS’ Outlook

Hims & Hershas provided its revenue outlook for the fourth quarter and 2025.

The company projects revenues for the fourth quarter of 2025 in the range of $605 million to $625 million, reflecting an uptick of 26%-30% year over year.

For the full year, HIMS projects revenues in the range of $2.335 billion to $2.355billion (representing growth of 58%-59% from 2024 levels).

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -66.4% due to these changes.

VGM Scores

At this time, Hims & Hers Health has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Hims & Hers Health has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Hims & Hers Health is part of the Zacks Medical Info Systems industry. Over the past month, Omnicell (OMCL Quick QuoteOMCL - Free Report) , a stock from the same industry, has gained 11.5%. The company reported its results for the quarter ended September 2025 more than a month ago.

Omnicell reported revenues of $310.63 million in the last reported quarter, representing a year-over-year change of +10%. EPS of $0.51 for the same period compares with $0.56 a year ago.

For the current quarter, Omnicell is expected to post earnings of $0.48 per share, indicating a change of -20% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.8% over the last 30 days.

Omnicell has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.