Hims & Hers Health (NYSE: HIMS) shares fell about 4% to $22.09 in premarket trading on Tuesday after the telehealth company reported a third-quarter net loss, lowered its full-year profit forecast, and warned that subscriber weakness could continue into the fourth quarter.
The company reduced its 2026 adjusted EBITDA guidance to $257 million–$277 million from $275 million–$325 million. It also narrowed its annual revenue forecast to $3.13 billion–$3.15 billion from $3.1 billion–$3.3 billion. The revised revenue midpoint of $3.14 billion is below analysts’ consensus estimate of approximately $3.21 billion.
For the fourth quarter, Hims & Hers projected revenue of $875 million–$895 million, below analysts’ consensus estimate of $955.1 million. It also expects adjusted EBITDA of $70 million–$90 million, compared with Wall Street’s estimate of $102.3 million.
Management attributed the reduced annual adjusted EBITDA outlook partly to delayed recognition of weight-loss membership revenue and planned pricing and marketing initiatives in international markets.
Hims & Hers Reports Quarterly Loss as Margins Narrow
Third-quarter revenue grew 49% year over year to $890.4 million, slightly below Wall Street’s estimate of $892.9 million. However, the company reported a GAAP net loss of $33 million, or $0.14 per share, compared with a net profit of $15.8 million a year earlier.
The reported revenue excluded $18 million in weight-loss membership revenue deferred to the fourth quarter. Chief Financial Officer Yemi Okupe said the deferral did not affect free cash flow generation.
The loss came as operating expenses increased to $575.3 million from $430.3 million a year earlier. Hims & Hers recorded an operating loss of $66.1 million, compared with an operating profit of $11.8 million in the prior-year quarter.
Profitability also faced pressure from lower-margin branded weight-loss treatments in international markets. Gross margin fell to 57% from 74% a year earlier and 64% in the second quarter. Okupe attributed the seven-percentage-point sequential decline mainly to these treatments accounting for a larger share of international sales.
Despite those pressures, third-quarter adjusted EBITDA, a non-GAAP measure, increased to $82.4 million from $78.4 million a year earlier.
HIMS shares had already fallen 11.77% to $22.94 in Monday’s regular session, before the company released its quarterly results.
Separately, Hims & Hers Tokenized bStocks (HIMSB) was trading at $22.16, down 14.19% over the preceding 24 hours, according to CoinMarketCap. HIMSB is a tokenized instrument distinct from NYSE-listed HIMS shares, and its 24-hour change does not represent the listed stock’s regular-session performance.
Sequential Subscriber Decline Could Continue Into Fourth Quarter
Hims & Hers ended September with 2.788 million subscribers, down from 2.891 million at the end of June. That represented a sequential decline of 103,000 subscribers, or approximately 3.6%, although the total remained 13% above the year-earlier level.
Despite the decline in subscriber numbers, monthly revenue per average subscriber increased 30% year over year to $105.
During the earnings call, Okupe attributed the quarterly subscriber decline partly to reduced marketing spending on U.S. weight-loss treatments and the migration of international brands onto the Hims & Hers platform.
The pressure could persist into the fourth quarter. Okupe said the company plans to continue limiting U.S. weight-loss marketing while expanding its treatment offerings, including access to Eli Lilly’s Foundayo and Zepbound. He warned that restrained spending could place further pressure on subscriber numbers during the quarter.
Revenue Deferrals and International Spending Weigh on 2026 Outlook
For the full year, Okupe expects revenue-recognition timing to reduce reported 2026 revenue and adjusted EBITDA by at least $20 million because the company will recognize certain membership payments received in December as revenue in January 2027.
The company also plans pricing changes and increased marketing spending in the United Kingdom and Germany as it expands the Hims & Hers brands internationally. These measures are expected to weigh on near-term revenue and profitability.
At the same time, international expansion is contributing to sales growth. Hims & Hers raised its 2026 international revenue expectation to at least $650 million from $600 million. International revenue reached $233.3 million in the third quarter, including approximately $135 million from Eucalyptus, which the company acquired in June.