Should Hims & Hers Stock's Drop After Earnings Worry You? Trefis Team Fri, November 13, 2026 at 3:23 PM EST 4 min read HIMS -0.86% ^GSPC -0.40% ADUS -0.58% CVS -0.70% CI +0.25% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
For questions about this article or underlying research, email help@trefis.com.
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.
How Fast Is Hims & Hers Growing At Home?
Revenue at home grew 21% in fiscal Q3 2026, against 48.6% for the whole company. Growth at home has picked up for two quarters in a row, up from 16% in fiscal Q2 2026.
The faster pace came from abroad. International revenue grew more than fourfold to $233 million, including about $135 million from Eucalyptus. The rest of international revenue grew nearly 80% from a year earlier. So the company's headline growth rate mixes slower growth at home with much faster growth abroad, where Eucalyptus accounts for more than half of sales.
Against that growth, Hims & Hers carries $1,561 million of debt against $712 million of cash and short-term investments. A company with more debt than cash has less room if subscribers do not return or free cash flow turns negative again.
Free cash flow turned positive in the latest quarter even as the gross margin fell. Subscribers dropped over the quarter, and management expects another quarter of headwinds. Hims & Hers' subscriber count in its fiscal Q4 2026 report, expected in February 2027, is the number to watch.
Want Some Of Your Money Off This Roller Coaster?
Swings like this come with owning single stocks. The Trefis Income Solution holds 50 companies chosen to keep paying dividends, each with at least 10 straight years of dividends, yielding about 3x the S&P 500.
Spot an error or want more like this? Tell us in 10 seconds.
