Hims & Hers Health (NYSE: HIMS) saw its shares tumble more than 12% over two trading sessions after the telehealth company released its third‑quarter results and trimmed its 2026 financial outlook. The stock closed at $22.94 on Monday, fell to $22.09 in pre‑market trade on Tuesday, and is hovering near $22.10, according to CoinCentral.

Q3 Results Show Losses and Margin Compression

The company reported a GAAP net loss of $33 million, or $0.14 per share, versus a profit of $15.8 million a year earlier. Revenue grew 49% year‑over‑year to $890.4 million, just shy of FactSet’s consensus of $893 million, while gross margin fell to 57% from 74% in the prior year, a decline attributed to a larger share of lower‑margin branded GLP‑1 weight‑loss treatments in international markets, as noted by The Crypto Basic.

Subscriber Base Misses Expectations

Hims & Hers ended September with 2.788 million subscribers, 13% above the year‑earlier level but 3.6% lower than the 2.891 million recorded at the end of June. Wall Street had projected 3.04 million subscribers for the quarter, according to CoinCentral. Monthly revenue per subscriber rose 30% to $105, indicating higher per‑user spend despite the subscriber shortfall.

Guidance Cut and Outlook for 2026

Management lowered its full‑year adjusted EBITDA target to $257 million–$277 million from $275 million–$325 million and narrowed revenue guidance to $3.13 billion–$3.15 billion, below the consensus of about $3.21 billion. For Q4, the company projects revenue of $875 million–$895 million and adjusted EBITDA of $70 million–$90 million, both falling short of analyst estimates. CFO Yemi Okupe said the cuts reflect delayed recognition of weight‑loss membership revenue and upcoming pricing and marketing initiatives in international markets.

What to Watch Next

Investors will be monitoring the impact of Hims & Hers’ partnership with Eli Lilly on weight‑loss drug sales, the rollout of new international marketing spend in the UK and Germany, and the timing of deferred membership revenue that could boost 2027 results. Additionally, the performance of the tokenized bStocks (HIMSB) instrument, which fell 14% over the past 24 hours, may provide insight into market sentiment toward the broader brand.