Hims & Hers Grows Revenue 49% but Sheds 100,000 Subscribers

Hims & Hers Health (NYSE:HIMS) grew third-quarter revenue 49% to $890 million and lost 100,000 subscribers from the prior quarter, the company said on its earnings call. The company reported a net loss of $33 million and cut its full-year adjusted EBITDA guidance, citing planned pricing and marketing investments in the U.K. and Germany and the deferral of weight-loss membership revenue.

The subscriber count stood at 2.8 million, up 13% from a year earlier but down sequentially. Both figures demand scrutiny: management frames the decline as deliberate, yet the plan requires growth to return on schedule.

Why did subscribers fall?

Chief Executive Officer Andrew Dudum said the company deliberately traded near-term subscriber growth for time to broaden its weight-loss offerings and improve the customer experience ahead of the new year. Chief Financial Officer Yemi Okupe said moderated U.S. marketing could lead to another quarter of subscriber headwinds, with growth expected to recover as marketing increases around the seasonally strong first quarter.

That is a promise contingent on timing. If the weight-loss launches slip, the recovery slips with them.

What drove the weight-loss business?

Domestic revenue grew 21% year over year to $657 million, accelerating from 16% growth in the second quarter. Okupe said demand for the Wegovy pill, offered through the company's partnership with Novo, helped drive record subscriber additions in the first half of 2026.

The company plans to expand access to Lilly's Zepbound and Foundayo through a recently announced agreement. It also plans to add Novo's CagriSema once available and to introduce flexible multi-month subscriptions across its weight-loss assortment.

Dudum said the broader selection addresses different customer preferences for medication, dosing and side effects. He confirmed the company pulled back marketing while preparing those additions and other pricing and subscription options.

The company deferred $18 million of weight-loss membership revenue from the third quarter into the fourth. Okupe said the deferral did not affect free cash flow.

What happened internationally?

International revenue more than quadrupled to $233 million, including approximately $135 million from Eucalyptus, which Hims & Hers acquired in June. The rest of the international portfolio grew nearly 80% year over year, Okupe said.

The company raised its 2026 international revenue expectation to at least $650 million from $600 million and said the business was on track to exceed a $1 billion annual revenue run rate in 2027. It plans additional marketing and pricing investments in markets including the U.K. and Germany while consolidating brands under Hims & Hers.

Growth carried a cost. Gross margin fell approximately seven percentage points from the prior quarter to 57%, primarily because of the growing share of lower-margin branded weight-loss products in the international business. Okupe noted the third quarter included a full quarter of Eucalyptus results, unlike the preceding quarter. He expects gross-margin declines to begin moderating as the pace of the shift toward international and weight-loss revenue slows.

Adjusted EBITDA rose 37% sequentially to $82 million, a 9% margin. The company generated $65 million in operating cash flow and $26 million in free cash flow and ended the quarter with more than $710 million in cash and investments.

What is launching next?

Hims & Hers expanded its testosterone offering to include injectable and oral testosterone replacement therapy, its first controlled-substance launch. It expects to launch the first phase of its Peptides+ offering later in the month, including sermorelin, glutathione and NAD+. Okupe said peptide revenue was not expected to be material in the fourth quarter.

The company plans to add BPC-157 and TB-500 when the regulatory environment permits. Dudum said the company awaits clarity on final regulatory requirements, including potential testing and facility standards — a reminder that the peptide pipeline rests on rules not yet written.

On artificial intelligence, Chief Technology Officer Mo Elshenawy said the company's AI-native experience was available to a large majority of weight-loss customers at quarter-end. Okupe put coverage at 70% and said it should reach nearly all such subscribers before year-end. Elshenawy said customers with access sent four times as many messages on the platform; clinicians remain responsible for clinical decisions.

What does the outlook say?

For the fourth quarter, Hims & Hers forecast revenue of $875 million to $895 million and adjusted EBITDA of $70 million to $90 million. For 2026, it tightened its revenue outlook to $3.13 billion to $3.15 billion and reduced its adjusted EBITDA range to $257 million to $277 million.

Okupe said deferred membership revenue would reduce full-year revenue and adjusted EBITDA by at least $20 million, as some December payments will not be recognized until January. The company expects positive free cash flow for 2026 and said it is positioned to generate positive free cash flow in 2027.

Hims & Hers, founded in 2017, operates a consumer-focused telehealth platform spanning hair loss, sexual health, skin care, mental health, weight management and primary care, with offerings varying by location and individual eligibility. The quarter bought time; the first quarter of next year will show whether that trade paid.