Hims & Hers shares dip as margin pressure and weak outlook hit sentiment

Hims & Hers Health (NYSE: HIMS) shares fell more than 3% in Tuesday premarket trading after the telehealth company issued fourth-quarter and full-year 2026 guidance below analyst expectations, overshadowing strong year-over-year revenue growth.

The company reported a third-quarter loss of $0.14 per share, missing analyst expectations for earnings of $0.06 per share. Revenue rose 49% year-over-year to $890.4 million, but came in slightly below the consensus estimate of $892.88 million. Subscribers increased 13% from a year earlier to nearly 2.8 million.

For the fourth quarter, Hims & Hers forecast revenue of $875 million to $895 million, putting the midpoint at $885 million, well below Wall Street expectations of $955.1 million. Adjusted EBITDA is expected to range from $70 million to $90 million, compared with analyst estimates of $102.3 million.

The company also lowered its full-year adjusted EBITDA outlook to $257 million to $277 million, down from its previous forecast of $275 million to $325 million.

"HIMS had been making downward revisions to the EBITDA guidance throughout the year, but we were still negatively surprised by the magnitude of the reduction this quarter," BTIG analysts commented.

Full-year revenue guidance was narrowed to $3.13 billion to $3.15 billion, with the midpoint of $3.14 billion below the analyst consensus of $3.21 billion.

"While HIMS continues to expand its weight-loss assortment and international footprint, we believe the 3Q26 print leaves the primary investor debates largely unresolved," Truist analysts led by Jailendra Singh said in a note.

Hims CFO Yemi Okupe highlighted 49% year-over-year revenue growth, marking the company’s second consecutive quarter of acceleration. Domestic revenue increased 21%, while international revenue surged more than 300%.

Third-quarter adjusted EBITDA rose to $82.4 million from $78.4 million a year earlier. However, gross margin declined sharply to 57% from 74% in the prior-year period, highlighting pressure on profitability despite continued revenue growth.

"In the third quarter, we continued to apply what we’ve learned to make deliberate strategic decisions to position Hims & Hers for durable, multi-year growth," Okupe said.

Vahid Karaahmetovic contributed to this report.