Key Highlights

  • On Tuesday, November 10, 2026, Hims & Hers Health (NYSE:HIMS) dropped 16.61% to about USD 19.16, prolonging its slide after third-quarter results.
  • Revenue grew 49% to USD 890.4 million, yet the company posted a net loss and subscribers declined from the prior quarter to 2.79 million.
  • Adjusted EBITDA guidance for full-year 2026 was lowered to USD 257 million to USD 277 million, the third cut this year, from the USD 300 million to USD 375 million range set in February.
  • Fourth-quarter Revenue guidance of USD 875 million to USD 895 million was softer than investors had hoped, and five states have joined a Federal Trade Commission lawsuit.

Subscriber Loss and Margin Squeeze

The fall in subscribers worried investors most. Hims & Hers shed about 103,000 subscribers during the quarter, its first sequential decline in at least four years, even though the total remained 13% above a year earlier. Recurring subscriptions underpin the growth story and the premium valuation investors have been willing to pay. Management linked part of the drop to a deliberate reduction in Marketing ahead of new platform launches in the fourth quarter, describing the spending as intentionally paced. Both third-quarter revenue and adjusted EBITDA missed consensus, partly because some weight-loss revenue was deferred. The company moved to a net loss of USD 33.0 million, or USD 0.14 per share. Gross margin dropped to 57% from 74% a year earlier, since weight-loss products cost more to source and deliver than the hair, skin and sexual health lines that built the business. The stock had already lost 11.77% on November 9. Canadian investors can trade this US-listed name through a Canadian brokerage, with USD settlement.

What Is Powering the Top Line

A large part of the revenue growth came from acquisitions and new markets. Eucalyptus, an Australian online health company bought in June 2026, supplied about 46% of the year-on-year revenue increase. International revenue surged 321% to USD 233.3 million, while US revenue rose 21% to USD 657.1 million. Monthly revenue per subscriber climbed 30% to USD 105 as customers shifted to higher-priced weight-loss treatments. The company moved its US weight-loss offering toward branded GLP-1 drugs and agreed to sell Lilly's Zepbound from USD 299 a month on a self-pay basis. These products lift revenue per customer but carry lower margins, which is why profit guidance fell while sales grew. Investors now ask whether acquisition-driven growth can last once those deals are fully in prior-year comparisons, and whether subscriber growth can return despite the margin pressure, particularly as large pharmacies and drugmakers sell weight-loss drugs straight to consumers.

Legal Exposure and Financial Flexibility

The Federal Trade Commission filed a lawsuit in July, and five states have since joined it, which adds legal risk. The company has accrued about USD 60 million, and a hearing is scheduled for January 14, 2027. Hims & Hers also carries about USD 1.37 billion of convertible notes. Direct-to-consumer telehealth is fiercely competitive, and pricing on GLP-1 treatments keeps falling. Free Cash Flow fell to USD 26.0 million for the quarter from USD 79.4 million a year ago, and Operating Cash Flow got a lift from the sale of receivables, which restricts flexibility. The shares are favoured by retail investors and trade heavily, which tends to amplify moves around results.

Where Things Stand

Hims & Hers must show that its fourth-quarter platform launches can bring back subscriber growth and steady margins. Investors will track subscriber trends, progress in branded weight-loss offerings, international growth and developments in the FTC case, with the January hearing and fourth-quarter results in February as the next major checkpoints. A return to sequential subscriber growth would be the clearest sign of stabilisation after the guidance cut.