Hims & Hers (HIMS) Stock Sinks Again After Q3 Surprise Loss

TLDR

• Hims & Hers (HIMS) stock closed at $22.94 Monday after an 11.8% drop, then slipped near $22.10 premarket.
• Subscribers hit 2.79 million, short of the 3.04 million analysts expected.
• Revenue per subscriber rose 30% to $105, but gross margin fell to 57% from 74%.
• Q3 brought a loss of 14 cents a share, versus an expected 6 cent profit.
• Q4 revenue guidance of $875 million to $895 million trails the roughly $955 million consensus.

Hims & Hers (HIMS) stock was down about 4% in premarket trading Tuesday, near $22.10. It closed Monday at $22.94 after an 11.8% slide.

Hims & Hers Health, Inc., HIMS

That is the lowest close since May 19. Friday’s 8% pop on the Eli Lilly deal is now gone.

The trigger was the third-quarter report, released Monday after the close. Hims lost 14 cents a share, while analysts expected a 6 cent profit.

Revenue came in at $890.4 million, up 49% from a year ago. FactSet analysts had looked for $893 million.

The net loss was $33.0 million. A year ago, Hims earned $15.8 million.

Fewer customers, higher bills

Revenue per average subscriber rose 30% to $105. Total subscribers grew 13% to 2.79 million.

Wall Street wanted 3.04 million. The count also slipped by about 100,000 from the second quarter.

Management said it cut marketing spend on purpose ahead of platform expansions. Chief Financial Officer Yemi Okupe said those moves will “set us up well heading into 2027.”

Gross margin fell to 57% from 74% a year earlier. Investing.com linked the drop to branded GLP-1 drugs and faster growth abroad.

International revenue jumped 321% to $233.3 million. Domestic revenue rose 21% to $657.1 million.

Guidance and the Lilly deal

Fourth-quarter revenue is guided to $875 million to $895 million. Investing.com put the consensus near $955 million.

Full-year revenue guidance was narrowed to $3.13 billion to $3.15 billion. The old range was $3.1 billion to $3.3 billion.

Adjusted EBITDA for the year was cut to $257 million to $277 million. The prior range was $275 million to $325 million.

The Lilly deal lets customers get Zepbound and Foundayo through the Hims platform. Self-pay pricing starts at $149 a month for Foundayo and $299 for Zepbound.

CEO Andrew Dudum said “whoever owns the customer relationship wins.” CTO Mo Elshenawy said Hers weight-loss customers send three times as many messages, with AI answering 80% of their questions.

The stock is down 29.4% this year and 44.1% over 12 months. Its 52-week high is $41.28.

Insiders sold about $19.4 million of stock over the past year and bought $1.2 million. Six analysts recently cut their earnings estimates.

Hims also plans to add unapproved peptide treatments such as NAD+ and sermorelin. It named Stanford neuroscientist Andrew Huberman to its board, and the stock sat at $22.10 in premarket trading Tuesday.

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