SAN FRANCISCO – Hims & Hers Health cut its full-year adjusted earnings outlook Monday after reporting a $33 million third-quarter net loss, even as revenue climbed 49% to $890.4 million.
The online health platform now expects 2026 adjusted EBITDA of $257 million to $277 million, down from its previous range of $275 million to $325 million. It narrowed its full-year revenue forecast to $3.13 billion to $3.15 billion from $3.1 billion to $3.3 billion.
The quarter showed a sharp gap between sales growth and profitability. Gross margin fell to 57% from 74% a year earlier, while the $33 million GAAP net loss compared with net income of $15.8 million in the third quarter of 2025. Adjusted EBITDA, a separate non-GAAP measure, rose to $82.4 million from $78.4 million.
U.S. revenue grew 21% to $657.1 million. Revenue outside the United States rose 321% to $233.3 million. Subscribers reached 2.788 million at the end of September, up 13%, and monthly revenue per average subscriber rose 30% to $105.
Chief Financial Officer Yemi Okupe said the company had intentionally paced marketing spending ahead of planned fourth-quarter platform expansions. He described the quarter as the second consecutive period of accelerating revenue growth.
Cash generation weakened despite the higher sales. Operating cash flow fell to $65.4 million from $148.7 million a year earlier. Free cash flow, a non-GAAP measure, declined to $26 million from $79.4 million.
For the fourth quarter, Hims & Hers expects revenue of $875 million to $895 million and adjusted EBITDA of $70 million to $90 million, implying an adjusted EBITDA margin of 8% to 10%. Those figures are management guidance, not reported results.
The lower earnings forecast and narrower gross margin make the cost of expansion a central question for the company, whose platform sells health and wellness products and provides access to consultation and other care services. Monday’s release does not set a timetable for a return to quarterly GAAP profit.
Archive photo: Hims & Hers co-founder and CEO Andrew Dudum in a company-distributed image accompanying its August 2022 earnings release, cropped to 16:9. It was not taken for Monday’s results.
JBizNews Desk | San Francisco
© JBizNews.com. All rights reserved. Unauthorized reproduction or redistribution is strictly prohibited.
