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Hims & Hers Q3 Earnings Miss Estimates, Gross Margin Down
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Key Takeaways
HIMS shares fell nearly 3% after Q3 EPS missed estimates by 57.1%, despite 48.7% revenue growth.
Hims & Hers' gross margin shrank 1,661 basis points to 57.2%, while operating loss reached $66.1 million.
HIMS cut its 2026 adjusted EBITDA outlook to $257-$277 million despite raising international revenue outlook.
Hims & Hers Health, Inc. (HIMS - Free Report) reported quarterly earnings per share (EPS) of 3 cents in third-quarter 2026, down from the year-ago EPS of 6 cents. The metric missed the Zacks Consensus Estimate by 57.1%.
GAAP loss per share was 14 cents against the year-ago quarter's earnings of 6 cents.
HIMS’ Revenues in Detail
Hims & Hers registered revenues of $890.4 million in the third quarter, up 48.7% year over year. The figure missed the Zacks Consensus Estimate by 0.3%.
Solid revenues from both geographic segments drove the top line.
Hims & Hers’ Geographical Results
In the third quarter of 2026, revenues in the United States increased 20.9% year over year to $657.1 million. Domestic revenue growth accelerated for the second consecutive quarter, supported by the company's expanding weight loss offerings.
Rest of the World revenues totaled $233.3 million, up 320.7% year over year. The Eucalyptus acquisition contributed approximately $135 million, while the remaining international portfolio registered nearly 80% growth.
During the quarter, subscribers totaled approximately 2.8 million, up 12.8% year over year. However, subscriber count declined approximately 100,000 sequentially, reflecting moderated domestic marketing spending and international brand transitions.
Monthly revenue per average subscriber increased 29.6% year over year to $105. Management attributed the subscriber decline partly to its deliberate decision to moderate marketing investments ahead of planned product and platform expansions.
HIMS’ Margin Analysis
In the third quarter, Hims & Hers' gross profit increased 15.2% year over year to $509.2 million. However, gross margin contracted approximately 1,661 basis points to 57.2%, primarily reflecting a higher mix of lower-margin branded weight loss products in international markets.
Marketing expenses increased 6.5% year over year to $247.3 million. Operations and support expenses increased 39.5% to $107.2 million, while technology and development expenses surged 71% to $69.4 million.
General and administrative expenses jumped 87.8% year over year to $151.5 million. Total operating expenses increased 33.7% to $575.3 million.
Operating loss totaled $66.1 million against operating income of $11.8 million in the year-ago quarter.
Hims & Hers Health, Inc. Price, Consensus and EPS Surprise
Hims & Hers exited third-quarter 2026 with cash and cash equivalents and short-term investments of $712.2 million compared with $841 million at the end of second-quarter 2026.
Cumulative net cash provided by operating activities at the end of third-quarter 2026 was $118.8 million compared with $238.7 million a year ago.
HIMS’ Outlook
Hims & Hers projects fourth-quarter 2026 revenues between $875 million and $895 million, representing year-over-year growth of approximately 42%-45%. Adjusted EBITDA is expected to be between $70 million and $90 million.
For 2026, the company tightened its revenue guidance to $3.13-$3.15 billion from the previous range of $3.1-$3.3 billion.
However, HIMS lowered its full-year adjusted EBITDA guidance to $257-$277 million, reflecting planned international pricing and marketing investments and the impact of deferred membership revenues.
Management now expects international revenues of at least $650 million in 2026, up from its previous expectation of $600 million. It also anticipates positive free cash flow for the full year.
Our Take on Hims & Hers
Hims & Hers exited the third quarter of 2026 with lower-than-expected earnings and revenues. Nevertheless, the company recorded robust year-over-year revenue growth, supported by strong performances across its domestic and international businesses. The increase in subscribers and monthly revenue per average subscriber during the quarter was encouraging.
Per management, HIMS' international performance benefited from the Eucalyptus acquisition, while domestic revenue growth accelerated for the second consecutive quarter. The company's expanding weight loss portfolio, strategic collaborations with Novo Nordisk and Eli Lilly and continued investments in AI-driven technology are encouraging. Management also expects its expanding treatment offerings and international presence to support long-term growth. These developments raise our optimism about the stock.
However, Hims & Hers' weaker-than-expected earnings and revenues in the quarter were disappointing. The sequential decline in subscribers, significant contraction in gross margin and higher operating expenses remain concerning. Moreover, the reduction in full-year adjusted EBITDA guidance does not bode well for the stock.
HIMS’ Zacks Rank and Key Picks
Hims & Hers currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are OPKO Health (OPK - Free Report) , Globus Medical (GMED - Free Report) and Merit Medical Systems (MMSI - Free Report) .
OPKO Health, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted loss of 1 cent per share, which surpassed the Zacks Consensus Estimate by 87.5%. Revenues of $163.6 million beat the Zacks Consensus Estimate by 24.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
OPK has an estimated earnings growth rate of 23.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 95.1%.
Globus Medical, currently carrying a Zacks Rank #2 (Buy), reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Merit Medical Systems, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $1.19, which beat the Zacks Consensus Estimate by 23.9%. Revenues of $418.8 million surpassed the Zacks Consensus Estimate by 3.5%.
MMSI has an estimated long-term earnings growth rate of 10.4%. Merit Medical Systems’ earnings surpassed estimates in the trailing four quarters, with the average surprise being 14.1%.
View the Zacks #1 Rank List
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Hims & Hers Q3 Earnings Miss Estimates, Gross Margin Down
Key Takeaways
Hims & Hers Health, Inc. (HIMS - Free Report) reported quarterly earnings per share (EPS) of 3 cents in third-quarter 2026, down from the year-ago EPS of 6 cents. The metric missed the Zacks Consensus Estimate by 57.1%.
GAAP loss per share was 14 cents against the year-ago quarter's earnings of 6 cents.
HIMS’ Revenues in Detail
Hims & Hers registered revenues of $890.4 million in the third quarter, up 48.7% year over year. The figure missed the Zacks Consensus Estimate by 0.3%.
Solid revenues from both geographic segments drove the top line.
Hims & Hers’ Geographical Results
In the third quarter of 2026, revenues in the United States increased 20.9% year over year to $657.1 million. Domestic revenue growth accelerated for the second consecutive quarter, supported by the company's expanding weight loss offerings.
Rest of the World revenues totaled $233.3 million, up 320.7% year over year. The Eucalyptus acquisition contributed approximately $135 million, while the remaining international portfolio registered nearly 80% growth.
During the quarter, subscribers totaled approximately 2.8 million, up 12.8% year over year. However, subscriber count declined approximately 100,000 sequentially, reflecting moderated domestic marketing spending and international brand transitions.
Monthly revenue per average subscriber increased 29.6% year over year to $105. Management attributed the subscriber decline partly to its deliberate decision to moderate marketing investments ahead of planned product and platform expansions.
HIMS’ Margin Analysis
In the third quarter, Hims & Hers' gross profit increased 15.2% year over year to $509.2 million. However, gross margin contracted approximately 1,661 basis points to 57.2%, primarily reflecting a higher mix of lower-margin branded weight loss products in international markets.
Marketing expenses increased 6.5% year over year to $247.3 million. Operations and support expenses increased 39.5% to $107.2 million, while technology and development expenses surged 71% to $69.4 million.
General and administrative expenses jumped 87.8% year over year to $151.5 million. Total operating expenses increased 33.7% to $575.3 million.
Operating loss totaled $66.1 million against operating income of $11.8 million in the year-ago quarter.
Hims & Hers Health, Inc. Price, Consensus and EPS Surprise
Hims & Hers Health, Inc. price-consensus-eps-surprise-chart | Hims & Hers Health, Inc. Quote
Hims & Hers’ Financial Position
Hims & Hers exited third-quarter 2026 with cash and cash equivalents and short-term investments of $712.2 million compared with $841 million at the end of second-quarter 2026.
Cumulative net cash provided by operating activities at the end of third-quarter 2026 was $118.8 million compared with $238.7 million a year ago.
HIMS’ Outlook
Hims & Hers projects fourth-quarter 2026 revenues between $875 million and $895 million, representing year-over-year growth of approximately 42%-45%. Adjusted EBITDA is expected to be between $70 million and $90 million.
For 2026, the company tightened its revenue guidance to $3.13-$3.15 billion from the previous range of $3.1-$3.3 billion.
However, HIMS lowered its full-year adjusted EBITDA guidance to $257-$277 million, reflecting planned international pricing and marketing investments and the impact of deferred membership revenues.
Management now expects international revenues of at least $650 million in 2026, up from its previous expectation of $600 million. It also anticipates positive free cash flow for the full year.
Our Take on Hims & Hers
Hims & Hers exited the third quarter of 2026 with lower-than-expected earnings and revenues. Nevertheless, the company recorded robust year-over-year revenue growth, supported by strong performances across its domestic and international businesses. The increase in subscribers and monthly revenue per average subscriber during the quarter was encouraging.
Per management, HIMS' international performance benefited from the Eucalyptus acquisition, while domestic revenue growth accelerated for the second consecutive quarter. The company's expanding weight loss portfolio, strategic collaborations with Novo Nordisk and Eli Lilly and continued investments in AI-driven technology are encouraging. Management also expects its expanding treatment offerings and international presence to support long-term growth. These developments raise our optimism about the stock.
However, Hims & Hers' weaker-than-expected earnings and revenues in the quarter were disappointing. The sequential decline in subscribers, significant contraction in gross margin and higher operating expenses remain concerning. Moreover, the reduction in full-year adjusted EBITDA guidance does not bode well for the stock.
HIMS’ Zacks Rank and Key Picks
Hims & Hers currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are OPKO Health (OPK - Free Report) , Globus Medical (GMED - Free Report) and Merit Medical Systems (MMSI - Free Report) .
OPKO Health, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted loss of 1 cent per share, which surpassed the Zacks Consensus Estimate by 87.5%. Revenues of $163.6 million beat the Zacks Consensus Estimate by 24.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
OPK has an estimated earnings growth rate of 23.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 95.1%.
Globus Medical, currently carrying a Zacks Rank #2 (Buy), reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Merit Medical Systems, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $1.19, which beat the Zacks Consensus Estimate by 23.9%. Revenues of $418.8 million surpassed the Zacks Consensus Estimate by 3.5%.
MMSI has an estimated long-term earnings growth rate of 10.4%. Merit Medical Systems’ earnings surpassed estimates in the trailing four quarters, with the average surprise being 14.1%.