Hims & Hers cuts 2026 profit forecast as margins contract

What happened

Hims & Hers Health cut its 2026 core earnings forecast to $257 million–$277 million, from $275 million–$325 million, as costs for branded weight-loss drugs and international expansion pressured margins. Quarterly revenue rose 49% to $890.4 million, while gross margin fell to 57% from 74% a year earlier.

Confirmed

Global impact / market context

The lower forecast indicates that higher drug and expansion costs are absorbing more of the revenue growth. If those costs persist, they could limit how much rising subscriptions and customer spending add to profit, while a quarterly net loss highlights the pressure already reaching the bottom line.

Analyst inference

Growth was strong but uneven: subscribers increased 13% and monthly revenue per average subscriber rose 30%, while gross margin declined. Quarterly revenue also came in slightly below analysts’ average estimate, and the company reported a net loss rather than the prior year’s net income.

Confirmed

What to watch

1. Watch whether gross margin stabilizes or falls further; it measures the share of sales left after direct costs, including the expense of branded weight-loss drugs. Analyst inference
2. Track the next full-year forecast and results against the new $257 million–$277 million core earnings range, which will show whether cost pressure is easing. Analyst inference
3. Follow subscriber growth, monthly revenue per average subscriber, and international revenue to see whether customer expansion continues to offset higher costs. Analyst inference

Evidence

• Original source link unavailable