Hims & Hers Stock Drops After It Cuts EBITDA Outlook

What happened

Hims & Hers reported third-quarter revenue of $890.4 million, slightly below analysts’ $893.13 million consensus, and a loss of $0.14 per diluted share versus an expected profit of $0.06. It lowered its 2026 adjusted EBITDA outlook to $257 million–$277 million.

Confirmed

Global impact / market context

Revenue and subscriber growth were strong, but lower gross profit per sale, a net loss, and reduced cash from operations show rising pressure beneath that growth. Lower adjusted EBITDA guidance, a measure of operating earnings before certain costs, may constrain funds available for expansion or marketing.

Analyst inference

The results combine fast growth with weaker profitability: revenue rose 49% and subscribers increased 13%, while gross margin fell from 74% to 57% and free cash flow dropped. Management said it is pacing marketing spending before planned fourth-quarter expansions, linking near-term costs with its growth plans.

Confirmed

What to watch

1. Check whether fourth-quarter revenue reaches the company’s $875 million–$895 million outlook, which would indicate whether subscriber growth and higher monthly revenue continue. Analyst inference
2. Track fourth-quarter adjusted EBITDA against the $70 million–$90 million forecast; this measure excludes some costs and indicates operating earnings under the company’s definition. Confirmed
3. Watch whether planned fourth-quarter expansions and paced marketing spending improve growth without further weakening gross margin, cash generation, or the reduced 2026 earnings outlook. Analyst inference

Evidence

• gurufocus.com