Markets
Hims & Hers Fell 17% After a Loss and a Lower Outlook
Hims & Hers shares fell 16.6% on November 10, 2026, after it posted a surprise third-quarter loss and cut its 2026 profit outlook. Gross margin fell to 57% from 74%.
Revenue growth of almost 50% was not enough. Hims & Hers Health reported after the close on Monday, November 9, that third-quarter revenue rose 49% to $890.4 million, slightly short of the roughly $892.8 million analysts expected, and that it swung to a net loss of $33 million, or 14 cents a share, from a profit of $15.8 million a year earlier. Analysts had forecast earnings of about 6 cents. The stock, which had already fallen about 12% during Monday's session, dropped another 16.61% on Tuesday.
The number behind the loss is gross margin, which fell to 57% from 74% a year earlier. In other words, out of every dollar of sales the company kept 57 cents after the direct cost of the products and services it sold, against 74 cents before. According to Stocktwits, the squeeze came from the cost of expanding abroad and from a shift in the mix toward branded treatments, which earn a lower margin than the company's own compounded products.
The geography shows where the growth is coming from. US revenue rose 21% to $657.1 million, while revenue outside the US jumped 321% to $233.3 million. Subscribers reached nearly 2.8 million, up 13%, and monthly revenue per average subscriber rose 30% to $105, so customers are paying more for each plan even as the count grows more slowly than sales.
Guidance did the rest of the damage. The company now expects 2026 revenue of $3.13 billion to $3.15 billion, a narrower range around the bottom half of the $3.1 billion to $3.3 billion it gave in August, and full-year adjusted core profit of $257 million to $277 million, down from $275 million to $325 million. That implies a margin of about 8% to 9%. For the fourth quarter it guided to revenue of $875 million to $895 million, below the third quarter at the midpoint.
The stock was down about 29% this year before Tuesday's fall. A company growing sales this quickly can still lose value if each new dollar of revenue earns less than the last, and that is the question the next report has to answer: whether the margin reached a floor in the third quarter or whether international expansion keeps pushing it lower.