Hims & Hers Health, Inc. (NYSE: HIMS) fell 11.8% on Monday, closing at $22.94, and slipped a further 4% to about $22.10 in premarket trading on Tuesday. The close marked the stock's lowest finish since May 19, when it ended the day at $22.44, and it erased the entire 8% gain the shares had posted on Friday, leaving the stock at its weakest level in nearly six months.

The sell-off followed third-quarter results that missed Wall Street expectations on profitability, subscriber growth and forward guidance. The telehealth company posted a third-quarter loss of 14 cents a share, against analyst expectations of a 6-cent profit. Revenue rose 49% year over year to $890.4 million, landing just under the $893 million FactSet consensus. Adjusted EBITDA came in at $82.4 million, up 5% from a year ago and below the $85.1 million estimate. The company swung to a net loss of $33.0 million from net income of $15.8 million a year earlier, while analysts had looked for a profit of $13.9 million.

Financial data provider Wall St Engine highlighted the headline figures in a post on X:

$HIMS & HERS Q3'26 EARNINGS HIGHLIGHTS 🔹 Revenue: $890.4M (Est. $893M) 🔴; +49% YoY 🔹 EPS: -$0.14 (Est. $0.06) 🔴 🔹 Adj. EBITDA: $82.4M (Est. $85.1M) 🔴; +5% YoY 🔹 Gross Margin: 57%; -1,700 bps YoY Customers & Assets: 🔹 Subscribers: 2,788; +13% YoY 🔹 Monthly Revenue per… pic.twitter.com/88sYs9ObkP

— Wall St Engine (@wallstengine) November 9, 2026

Where the Margin Went

Gross margin compressed to 57% from 74% a year earlier, a decline of 1,700 basis points. Gross margin — the share of revenue left after the direct cost of the products sold — is one of the cleanest gauges of unit economics for a telehealth platform selling medications directly to consumers. Per Investing.com, the contraction reflects a pivot toward lower-margin branded GLP-1 drugs and faster growth overseas, a shift that is reshaping the company's economics as its weight-loss and international businesses scale. It also frames the quarter's central tension: revenue grew 49%, yet the faster-growing segments carry less margin per dollar, which is how the same three months produced both that growth and a $33.0 million net loss.

International revenue jumped 321% to $233.3 million, while domestic revenue rose 21% to $657.1 million.

Subscribers Fall Short

The subscriber base grew 13% year over year to 2.79 million, short of the 3.04 million Wall Street had penciled in. The count also slipped about 100,000 from the second quarter, which management attributed to lower marketing spend ahead of planned platform expansions. Revenue per average subscriber climbed 30% to $105, meaning each customer generates more revenue even as the total base trails expectations. Read against management's explanation, the sequential dip looks less like collapsing demand and more like a deliberate throttle on acquisition spending while the platform build-out continues — a trade-off the coming quarters' subscriber counts will put to the test.

Guidance and the Lilly Deal

The company also issued a weaker-than-expected fourth-quarter outlook. Hims & Hers expects revenue of $875 million to $895 million, below the roughly $955 million analyst consensus. Adjusted EBITDA is guided to $70 million to $90 million, an implied margin of 8% to 10% — a range consistent with the roughly 9% adjusted EBITDA margin the company delivered in the third quarter.

Full-year revenue guidance was narrowed to $3.13 billion to $3.15 billion, from a prior range of $3.1 billion to $3.3 billion. The full-year adjusted EBITDA outlook was cut to $257 million to $277 million, down from the earlier $275 million to $325 million range.

The gap of roughly $60 million to $80 million between the Q4 guidance and the Street's consensus makes the fourth-quarter report the next natural checkpoint for the threads running through this quarter: whether revenue lands inside the guided range, whether the subscriber base recovers as marketing resumes ahead of the planned platform expansions, and how the newly added Lilly treatments show up in subscriber economics.

Last Friday, the company announced a deal with Eli Lilly — the pharmaceutical manufacturer behind Zepbound, a branded GLP-1 weight-loss injection — to sell Zepbound and Foundayo on its platform, with self-pay pricing starting at $149 a month for the oral Foundayo and $299 for injectable Zepbound. Chief Executive Andrew Dudum said, "whoever owns the customer relationship wins." Chief Technology Officer Mo Elshenawy said Hers weight-loss customers now send three times as many messages, with AI answering 80% of their questions.

Stock Under Pressure

Shares are down 29.4% this year and 44.1% over the past 12 months, against a 52-week high of $41.28. Insiders sold about $19.4 million worth of stock over the past year, compared with $1.2 million in purchases, and six analysts have recently cut their earnings estimates — details that place the post-earnings drop within a longer stretch of selling and falling estimates rather than a one-day reaction.

Separately, Hims & Hers plans to add unapproved peptide treatments such as NAD+ and sermorelin to its platform and has named Stanford neuroscientist Andrew Huberman to its board.

Source: CoinCentral