Key Highlights

  • Hims & Hers Health (NYSE:HIMS) finished at USD 22.98 on November 9, 2026, after sliding 11.77% from USD 26.00 before its post-close report, and it reached USD 20.63 in extended trading.
  • Third-quarter Revenue grew 49% to USD 890.4 million, meeting the USD 880 million to USD 900 million guidance, yet the Bottom Line turned negative, a USD 33.0 million loss equal to USD 0.14 a share.
  • Subscribers declined by 103,000 sequentially to 2.79 million, the first quarterly decrease in at least four years, though still up 13% year over year.
  • The company narrowed its 2026 revenue outlook to USD 3.13 billion through USD 3.15 billion, under the earlier midpoint, and lowered adjusted EBITDA guidance to USD 257 million through USD 277 million, the third downgrade this year.

What Went Wrong in the Quarter

Shares dropped hard during the regular session on November 9, before the company published its numbers at 4:05 PM ET; no single catalyst for that drop has been confirmed. The report then extended the losses. Gross Margin dropped to 57% from 74% a year earlier, as weight-loss products cost more to source, package and deliver than the hair, skin and sexual health lines that formed the original business. Cost of revenue rose by more than a Factor of two, reaching USD 381.2 million. Adjusted EBITDA edged up to USD 82.4 million, while its margin declined to 9% from 13%. Operating Cash Flow was helped by USD 433.3 million of receivables sold to a bank, while free cash flow sank from USD 79.4 million to USD 26.0 million. The subscriber drop worried investors most, because recurring subscriptions drive the growth narrative and the valuation multiple the market has been willing to pay.

Weight Loss Expansion and Overseas Sales

Much of the top-line increase came from new channels. Eucalyptus, an Australian online health Business acquired in June 2026, supplied about 46% of the year-over-year revenue gain and roughly 15% of quarterly sales. International revenue jumped 321% to USD 233.3 million, while US revenue increased 21% to USD 657.1 million, paced by the Hers brand's weight loss and skin care lines. Revenue per subscriber each month rose 30% to USD 105 as customers migrated toward pricier weight loss treatments. In March the company shifted its US weight loss service toward branded GLP-1 medicines, and on November 6 it announced a deal to provide Lilly's Zepbound starting at USD 299 monthly for self-pay patients. CFO Yemi Okupe noted that Marketing outlays were being deliberately slowed to prepare for several fourth-quarter platform expansions.

Guidance Cuts and Legal Overhang

The outlook now leaves little margin for error. The fourth quarter should bring USD 875 million to USD 895 million in sales and USD 70 million to USD 90 million of adjusted EBITDA, which pushes full-year profit expectations well below the USD 300 million to USD 375 million band from February. Branded GLP-1 Economics are structurally weaker, and direct-to-consumer weight loss is highly competitive. Regulatory exposure persists: a lawsuit from the Federal Trade Commission filed in July carries an accrual of around USD 60 million, with a hearing scheduled for January 14, 2027. The company also has USD 1.37 billion of convertible notes outstanding. Investors will track whether the planned fourth-quarter platform launches stem the subscriber decline and whether margins steady as the product mix settles.

Where Things Stand

Hims & Hers lost 11.77% during the November 9 regular session and fell further after hours, since a quarterly net loss, a steep drop in gross margin, the first sequential subscriber decline and a third reduction of 2026 profit targets outweighed 49% revenue growth. Moves into branded weight loss treatments and overseas markets are boosting sales while compressing margins. Fourth-quarter subscriber figures will reveal whether the approach can restore growth.