Hims & Hers Revenue Jumps 49% to $890.4 Million Despite Margin Contraction
Key Facts
Hims & Hers Health reported revenue of $890.4 million for the third quarter ended September 30, 2026, up 49% year over year from $599.0 million in the same period, according to a filing with the U.S. Securities and Exchange Commission. Sales growth coincided with a decline in gross margin to 57%, compared with 74% a year earlier, according to the company’s quarterly report. The results also showed the company swung to a net loss of $33 million, after posting net income of $15.8 million in the third quarter of 2025, according to a Reuters report. The results put rapid revenue growth alongside clear pressure on margins and profitability. The company’s shares closed at $19.13 on November 10, 2026, according to EL7 data.
Cost of revenue rose 143% year over year to $381.2 million in the third quarter, according to the quarterly filing. The company attributed the increase to a 176% rise in product and packaging costs and a 64% rise in shipping costs compared with the same period a year earlier. The report said pressure on the cost of revenue came mainly from weight-loss offerings. Cost factors included, according to the filing, product, packaging and shipping expenses tied to those offerings, as well as higher activity after the addition of subscribers and acquisitions. The widening gap between growth in the cost of revenue and sales meant that higher revenue did not prevent gross margin from declining during the period.
Revenue growth was split between the U.S. market and international markets, with faster growth outside the United States. U.S. revenue rose 21% to $657.1 million, and the company said growth came mainly from the Hers brand, weight-loss offerings and dermatology, with branded offerings also contributing. Hers represented about 45% of U.S. revenue in the third quarter, according to the quarterly report. Revenue from the rest of the world surged 321% to $233.3 million. The company attributed the international increase mainly to geographic expansion resulting from recent acquisitions, including Eucalyptus, whose acquisition closed in June 2026.
Average monthly revenue per subscriber rose to $105 in the third quarter, compared with $81 a year earlier, according to the company’s filing. The company attributed the increase in this metric to a change in product mix, including demand for weight-loss offerings, and the effect of the Eucalyptus acquisition. The increase shows that revenue growth coincided with a rise in the average amount the company generates from each subscriber, even as gross margin fell. The results coverage noted that subscriber numbers declined sequentially, despite growing year over year, but the available evidence does not specify their number or the scale of the change. The filing therefore does not quantify the sequential decline, while revenue growth and the revenue-per-subscriber metric show part of the business’s development.
The chief financial officer said the company deliberately moderated the pace of marketing spending ahead of planned expansions in the fourth quarter. He added that the company expected these expansions to position it for a launch in 2027, according to the results filing issued on November 9, 2026. The comment linked spending moderation to preparations for expansion without specifying the amount of the reduction or its separate financial impact in the third quarter. Reuters quoted Paul Cirro, chief investment officer at Cedar Grove Capital Management, which owns Hims shares, as saying, "The margin contraction was expected." Cirro linked his expectation to the company’s expansion into more condition categories and its efforts to attract more subscribers, Reuters reported.
The company set a fourth-quarter revenue range of $875 million to $895 million, with adjusted earnings before interest, taxes, depreciation and amortization of $70 million to $90 million, equivalent to a margin of 8% to 10%. It also cut its forecast for adjusted earnings in fiscal 2026 to $257–277 million, from a previous range of $275–325 million, according to Investing.com. The revised annual guidance puts the lower end of the expected range below the previous estimate, while markets will watch the company’s ability to sustain sales growth and convert it into earnings. After the guidance was announced, the stock fell more than 3% in premarket trading on Tuesday, according to a Reuters report. The company said the planned fourth-quarter expansions represent the next stage on its path toward 2027.