Weight-Loss Reset Dents Hims & Hers Outlook, But Analyst Sees Opportunity

Hims & Hers Health Inc. (NYSE:HIMS) shares are trading lower Tuesday after the company reported worse-than-expected third-quarter financial results and trimmed guidance on Monday.

The telehealth firm reported a third-quarter loss of 14 cents per share, versus the consensus estimate of earnings of 8 cents.

It reported revenue of $890.373 million, up 49% from a year earlier, missing the consensus estimate of $892.888 million, and within the management guidance of $880 million-$900 million.

Subscriber Growth Deceleration And Margin Compression

Subscribers grew to nearly 2.8 million, up 13% from a year earlier, though declined sequentially by 100,000 net subscribers as a result of measured marketing spend in domestic weight loss specialty and brand migrations in international markets.

Adjusted EBITDA was $82.4 million for the quarter compared to management guidance of $75 million-$95 million.

Gross margins were 57% in the third quarter, down approximately 7 points on a quarter-over-quarter basis.

The scaling of branded weight loss products and international business, which carry lower gross margins, primarily drove this decline.

Revised 2026 Outlook And Strategic Weight Loss Shift

Hims & Hers tightened its full-year 2026 revenue guidance to a range of $3.13 billion to $3.15 billion, compared to a prior range of $3.1 billion-$3.3 billion and Wall Street estimate of $3.21 billion.

The company reduced its 2026 adjusted EBITDA guidance range to between 257 million and 277 million, reflecting more aggressive strategic pricing and marketing actions that are expected to take hold in the U.K. and Germany, and the weight loss membership deferral. Earlier guidance stood at $275 million-$325 million.

CEO Andrew Dudum said in an earnings call, “The weight loss business has undergone structural changes in the last few quarters, and we’ve intentionally pulled back on marketing spend in order to execute on three things in advance of the new year.”

The company expects the impact of deferred revenue from accelerating membership revenue in weight loss newer specialties to negatively impact revenue and adjusted EBITDA by at least 20 million for the full year, as certain membership payments received in December will not be recognized as revenue until January 2.

The company told investors that it expects to invest in bringing additional value through pricing changes in weight loss specialty and heavy marketing investment to scale the Hims & Hers brands in strategic markets such as the U.K. and Germany prior to the period of historically higher acquisition levels in the first quarter.

While this will impact near-term revenue, Hims & Hers believes that efficiencies from economies of scale and subscriber gains will make these moves accretive in the midterm.

For the fourth quarter, it expects revenue of $875 million to $895 million versus the consensus estimate of $953.45 million.

Analyst Reiterates Buy Rating Despite Guidance Reset

Needham lowered the price forecast from $42 to $32, while reiterating the Buy rating.

Analyst Ryan Macdonald wrote that while HIMS shares are trading off following the reset, they remain confident the strategy will bear fruit and are buyers on weakness.

Although investors may be disappointed by the weaker-than-expected guidance, Hims & Hers is prioritizing its long-term ambition of becoming the dominant global direct-to-consumer healthcare platform.

To support this strategy, the company plans to hold marketing spending steady next quarter as it broadens its weight-loss offerings and accelerates international expansion.

HIMS Price Action: Hims & Hers Health shares were down 18.20% at $18.76 at the time of publication on Tuesday, according to Benzinga Pro data.

Photo: Lori Butcher / Shutterstock