Hims & Hers reported third quarter 2026 revenue of $890.4 million, slightly missing analyst estimates of $892.9 million. The company's strategic shift toward GLP-1 weight loss medications drove a significant collapse in gross margins, which fell to 57% from 74% in the prior-year period. While the company returned to positive free cash flow after a negative second quarter, it reported a net loss due to heavy stock-based compensation and a substantial legal contingency charge.
Key Highlights
- Gross margin compressed by 1,700 basis points year-over-year to 57%, reflecting the transition to lower-margin compounded and branded GLP-1 offerings.
- The company recorded a $62.5 million charge for legal contingencies, contributing to a GAAP net loss of $33.0 million compared to net income of $15.8 million a year ago.
- International revenue growth surged by over 300% year-over-year, providing a secondary growth lever to the 21% domestic revenue expansion.
- Full-year 2026 Adjusted EBITDA guidance was lowered to a midpoint of $267 million, down from previous expectations, citing marketing pacing and platform expansion costs.