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Hims & Hers Health is expected to report Q3 earnings tonight at 4:05 PM ET, and shares plunged 10.54% today, even after the company announced a deal involving Lilly’s GLP-1 weight-loss treatments just days before earnings.
Wall Street expects $892.77 million in revenue, near the top of management’s $880 million to $900 million guidance range.
However, profitability remains a major concern. Gross margins recently fell to 64% from 76%, reflecting a changing revenue mix toward branded GLP-1 medications and the Eucalyptus business.
Looking further ahead, management is targeting $6.5 billion in annual revenue and $1.3 billion in adjusted EBITDA by 2030.
The big question tonight is whether Hims & Hers can prove its rapidly expanding weight-loss business can deliver sustainable profits, or if the company will face continued margin pressure.
This article is updated throughout the trading day. Check back for more.
Hims & Hers (NYSE:HIMS) is expected to release third-quarter earnings today at 4:05 PM ET. Shares are down 28.36% year-to-date, and a fresh Eli Lilly partnership puts the company’s weight-loss strategy back under the microscope.
The company’s second-quarter revenue rose 38.3% to $753.21 million, exceeding estimates. GAAP EPS of -$0.37 missed expectations of -$0.05, weighed down by about $81 million of nonrecurring costs, including $47.5 million in legal liabilities.
Subscribers grew 19% to nearly 2.9 million, while free cash flow came in at -$68.19 million. The stock has fallen from $31.68 at that report to $23.26.
On November 6, Lilly agreed to offer Zepbound and Foundayo to self-pay patients through the platform (Quartz), and MarketWatch reported a rally that day. Shares reversed lower in today’s session.
| Metric | Q3 2026 Estimate | YoY Change | FY 2026 Estimate | FY 2027 Estimate |
|---|---|---|---|---|
| Revenue | $892.77M | +49.0% | $3.21B | $4.00B |
| EPS (Normalized) | $0.0563 | -6.2% | -$0.5603 | $0.4191 |
Projected revenue growth is steep, but Eucalyptus inflates the comparison. Earnings outlook has worsened: the quarterly EPS estimate fell from $0.0771 60 days ago, and the full-year 2026 figure dropped from -$0.13 90 days ago.
Tonight, I’ll be watching the company’s adjusted EBITDA against guidance of $75 million to $95 million, up from an 8% margin last quarter. Management warned that gross-margin pressure remains as branded weight-loss and international revenue grow.
Another focus tonight is on the company’s pharma partnerships. Management called Novo Nordisk “highly collaborative,” and Eli Lilly now adds Zepbound to the shelf, raising questions about pricing and per-patient margin.
The AI clinical engine needs proof. Among Hers weight-loss users, AI answered 80% of questions and cut nonclinical support tasks nearly 50%, with payback expected within 12 to 18 months.
Testosterone is the fastest-growing specialty outside weight loss, with injectable and oral versions planned before year-end. Finally, management expected a return to free-cash-flow generation in the second half of 2026 while fighting an FTC complaint filed July 29.
| Quarter | EPS Surprise | 1-Day Move | 7-Day Move | 14-Day Move |
|---|---|---|---|---|
| Q2 2026 | -640% | -1.77% | -10.23% | -9.83% |
| Q1 2026 | -1,266.18% | -3.56% | -10.35% | +7.15% |
| Q4 2025 | +92.31% | +2.33% | +2.33% | +34.93% |
| Q3 2025 | -41% | +2.2% | -7.1% | -8.39% |
On average, shares moved -6.34% in the week following earnings over the past year.
Contact [email protected] for any questions or corrections.
Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 500 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.
Outside of work, Thomas enjoys weight lifting and soccer.
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