Trefis Team
4 min read
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Hims & Hers Health (HIMS) stock fell 16.6% in the session after its fiscal Q3 2026 report, while the S&P 500 slipped 0.4%. The company reported after the market closed on November 9, 2026. Revenue of $890 million came in 2.2% below the consensus estimate. Management said that total left out $18 million of weight loss membership revenue that will be counted in the next quarter. On the earnings calendar’s measure, the company lost $0.10 a share against an expected $0.06 profit. Its reported net loss was $33 million. Management says it chose to spend less on U.S. weight loss marketing. Did that choice cost Hims & Hers customers it can win back?
Hims & Hers Is Losing Subscribers For Now
For now, it has cost subscribers. Hims & Hers ended the quarter with 2.8 million subscribers, 100,000 fewer than three months earlier. That count was still 13% higher than a year before. Management attributed the quarter’s drop to measured marketing spend in its U.S. weight loss business and to brand migrations in its international markets.
Management also said a meaningful portion of the subscriber trend came from a deliberate decision to hold back investment. It plans to keep U.S. weight loss marketing moderate in the fourth quarter, which may bring another quarter of subscriber headwinds.
The spending is meant to return ahead of the new year, when interest in weight loss reaches its annual peak. By then, Hims & Hers plans to offer a wider range of treatments, adding Zepbound and Foundayo from Lilly. Management expects to start seeing the benefit in the first quarter. Hims & Hers is betting that the customers it passed up this autumn sign on then.
Is Hims & Hers Still Making Cash?
For the latest quarter, yes, though on thinner terms. Gross margin fell to 57.2% in fiscal Q3 2026 from 73.8% a year earlier, and it was lower in each quarter in between. Management said the lower-margin branded weight loss products it sells abroad primarily drove the fall from the second quarter, and it expects the declines to start to moderate.
Even so, Hims & Hers reported $26.0 million of free cash flow for fiscal Q3 2026, compared with $79.4 million a year earlier. This followed a fiscal Q2 2026 in which reported free cash flow was negative $68.2 million. Management’s full-year 2026 guide is for positive free cash flow.
Management did cut its forecasts for the year. It lowered its full-year adjusted EBITDA forecast to $267 million at the midpoint, down from $300 million in August. The company tied that cut to more aggressive pricing and marketing planned in the U.K. and Germany, and to weight loss membership payments that will not count as revenue until January. The full-year revenue forecast came down too, dropping to $3.14 billion at the midpoint from $3.2 billion.
