Hims & Hers (HIMS) Falls After Earnings: Margins, Subscribers, and Guidance

Hims & Hers Health grew third-quarter revenue 49% year over year to $890.4 million, but swung to a $33 million net loss and reported an adjusted loss of $0.14 per share. Gross margin fell to 57% from 74% a year earlier, while subscribers declined by 100,000 quarter over quarter to 2.79 million. The contrast between revenue growth and weaker profitability and subscriber metrics has prompted investors to reassess the quality of the company’s growth.

Management set its fourth-quarter revenue midpoint at $885 million, below the analyst estimate of $955.1 million. Full-year adjusted EBITDA guidance was also cut from $275 million–$325 million to $257 million–$277 million. Shares fell sharply after the report, moving toward $19. Margin pressure reflects a shift toward branded-drug partnerships and higher supply-chain and technology costs. Jefferies lowered its price target from $31 to $24.

Hims & Hers also faces FTC privacy litigation involving allegations about sharing users’ health data and making subscription cancellation difficult. Five additional jurisdictions have joined the complaints, and the case remains unresolved. The company plans to launch its Peptides+ product line by the end of the fourth quarter, but its commercial potential and profitability remain unproven. Investors may watch subscriber retention, gross margin, customer-acquisition costs, regulatory developments, and new-product performance. This article is for informational purposes only and is not investment advice.