What Hims & Hers Health (HIMS) Said on Its Q3 Earnings Call

Key Points

• Revenue grew 49% to $890 million, while subscribers rose 13% year over year to 2.8 million but fell by 100,000 from the prior quarter. Hims & Hers reported a $33 million net loss and said moderated U.S. weight-loss marketing may create another quarter of subscriber headwinds.
• International revenue more than quadrupled to $233 million, prompting the company to raise its 2026 international revenue target to at least $650 million. Gross margin fell to 57%, partly because of a larger share of lower-margin branded weight-loss products and a full quarter of Eucalyptus results.
• The company lowered its 2026 adjusted EBITDA outlook to $257 million–$277 million, while narrowing its revenue forecast to $3.13 billion–$3.15 billion. It plans to broaden its weight-loss offerings and invest in international marketing, and expects positive free cash flow for the year.

Hims & Hers Health NYSE: HIMS reported third-quarter revenue growth of 49% but lost 100,000 subscribers from the prior quarter, as the digital health company held back U.S. weight-loss marketing and consolidated brands in international markets.

Revenue rose to $890 million, while subscribers increased 13% from a year earlier to 2.8 million. The company reported a net loss of $33 million and reduced its full-year adjusted EBITDA guidance, citing planned pricing and marketing investments in the U.K. and Germany and the deferral of weight-loss membership revenue.

Chief Executive Officer Andrew Dudum said the company deliberately traded near-term subscriber growth for time to broaden its weight-loss offerings and improve the customer experience ahead of the new year. Chief Financial Officer Yemi Okupe said moderated U.S. marketing could lead to another quarter of subscriber headwinds, with growth expected to recover as the company increases marketing around the seasonally strong first quarter.

Weight-loss assortment and subscriber trends

Domestic revenue grew 21% year over year to $657 million, accelerating from 16% growth in the second quarter. Okupe said demand for the Wegovy pill, offered through the company’s partnership with Novo, helped drive record subscriber additions in the first half of 2026.

Hims & Hers plans to expand access to Lilly’s Zepbound and Foundayo through a recently announced agreement. It also plans to add Novo’s CagriSema once available and introduce flexible multi-month subscriptions across its weight-loss assortment.

Dudum said the broader selection is intended to address different customer preferences for medication, dosing and side effects. He said the company pulled back marketing while preparing those additions and other pricing and subscription options.

The company deferred $18 million of weight-loss membership revenue from the third quarter into the fourth quarter. Okupe said the deferral did not affect free cash flow.

International growth and margin pressure

International revenue more than quadrupled to $233 million, including approximately $135 million from Eucalyptus, which Hims & Hers acquired in June. The rest of the international portfolio grew nearly 80% year over year, Okupe said.

The company raised its 2026 international revenue expectation to at least $650 million from $600 million and said the business was on track to exceed a $1 billion annual revenue run rate in 2027. It plans additional marketing and pricing investments in markets including the U.K. and Germany while consolidating brands under Hims & Hers.

Gross margin fell approximately seven percentage points from the prior quarter to 57%, primarily because of the growing share of lower-margin branded weight-loss products in the international business. Okupe said the third quarter included a full quarter of Eucalyptus results, unlike the preceding quarter. He expects gross-margin declines to begin moderating as the pace of the shift toward international and weight-loss revenue slows.

Adjusted EBITDA rose 37% sequentially to $82 million, representing a 9% margin. The company generated $65 million in operating cash flow and $26 million in free cash flow and ended the quarter with more than $710 million in cash and investments.

New treatments and AI tools

Hims & Hers expanded its testosterone offering to include injectable and oral testosterone replacement therapy, its first controlled-substance launch. It also expects to launch the first phase of its Peptides+ offering later in the month, including sermorelin, glutathione and NAD+. Okupe said peptide revenue was not expected to be material in the fourth quarter.

The company plans to add BPC-157 and TB-500 when the regulatory environment permits. Dudum said Hims & Hers is awaiting clarity on final regulatory requirements, including potential testing and facility standards.

Chief Technology Officer Mo Elshenawy said the company’s AI-native experience was available to a large majority of weight-loss customers at quarter-end. Okupe put coverage at 70% and said it should reach nearly all such subscribers before year-end. Elshenawy said customers with access sent four times as many messages on the platform; clinicians remain responsible for clinical decisions.

Outlook

For the fourth quarter, Hims & Hers forecast revenue of $875 million to $895 million and adjusted EBITDA of $70 million to $90 million. For 2026, it tightened its revenue outlook to $3.13 billion to $3.15 billion and reduced its adjusted EBITDA range to $257 million to $277 million.

Okupe said deferred membership revenue would reduce full-year revenue and adjusted EBITDA by at least $20 million, as some December payments will not be recognized until January. The company expects positive free cash flow for 2026 and said it is positioned to generate positive free cash flow in 2027.

About Hims & Hers Health (NYSE:HIMS)

Hims & Hers Health, Inc operates a consumer-focused telehealth platform that connects patients with licensed healthcare providers and offers access to treatments and wellness products. Its services include online consultations, prescription care and over-the-counter products.

The company serves a range of health needs, including hair loss, sexual health, skin care, mental health and weight management. Its platform also offers primary care and other services, with offerings varying by location and individual eligibility.

Founded in 2017, the company initially launched its Hims brand and later introduced Hers, expanding its services to a broader audience.

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