Hims & Hers tightened its full-year 2026 revenue outlook after missing Wall Street estimates for the third consecutive quarter. The company reported $890.4 million in revenue for Q3, up 49% from the same period last year, but it also posted a net loss of $33 million, compared to a profit of $15.8 million in 2025. Subscribers grew to nearly 2.8 million in Q3 2026, a 13% year-over-year increase, yet the company’s earnings fell short, losing 14 cents a share against an expected gain of six cents, marking its third consecutive miss.
Strategic Shifts and Missed Targets
Chief Financial Officer Yemi Okupe explained that revenue for the quarter excluded $18 million from the “scaling of membership revenue” in the weight loss offering. The company will recognize this amount in the fourth quarter, and Okupe noted that the deferral has no impact on free cash flow generation. Despite this deferral, adjusted EBITDA for Q3 came in at $82.4 million, a slight increase from $78.4 million the previous year. However, analysts highlighted that gross margins fell to 57%, down from 74% a year ago, primarily due to the company’s increased reliance on lower-margin brand-name weight-loss drugs.
Andrew Dudum, the company’s co-founder and CEO, emphasized the growing scale of its pharmacy and lab infrastructure as a key driver of future efficiency. “That infrastructure positions us to launch treatments of increasing complexity,” Dudum said, citing testosterone replacement therapy launching this quarter and a Peptides Plus offering later in the month. He also noted that the company’s AI-native experience is enhancing operational efficiencies, further supporting its long-term growth strategy.
As a result of these factors, Hims & Hers reduced its full-year 2026 adjusted EBITDA guidance to a range of $257 million to $277 million and tightened its revenue outlook to $3.13 billion to $3.15 billion. Okupe stated that this reflects more aggressive strategic pricing and marketing actions planned for the U.K. and Germany, along with the weight loss membership deferral. Ethan Feller, stock strategist at Zacks Investment Research, noted that while U.S. growth accelerated to 21%, the company’s margins remain under pressure, which could keep the stock under scrutiny until profitability improves.
Expanding Offerings and Partnerships
The company recently announced a deal with Eli Lilly to offer its branded obesity treatments directly through the Hims & Hers platform, eliminating the need for patients to access these drugs via LillyDirect. This partnership builds on an existing agreement with Novo Nordisk, further solidifying Hims & Hers’ position in the metabolic health market. Dudum highlighted that nearly 3 million people across four continents rely on the platform, showing its global reach and trustworthiness as a partner to pharmaceutical leaders.
