Hims & Hers Drops 18% as Q3 Loss and Profit Outlook Cut Disappoint; Novo Nordisk Slides 2%, Eli Lilly Holds Steady
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A surprise quarterly loss and a weaker profit outlook are hitting Hims & Hers (NYSE:HIMS) hard. Hims & Hers stock was last at $18.77, down 18%. The slide compounds a rough stretch, with the stock down 40% over the past month.
Hims & Hers reported its Q3 2026 results after the close on November 9. Revenue at the company rose 48.6% year over year (YoY) to $890.37 million, missing the $892.77 million consensus estimate. The company also swung to a loss and cut its full-year profit outlook.
Inside Hims & Hers’ Q3 Miss and Guidance Cut
On the bottom line, Hims & Hers lost $0.14 per share on a GAAP basis, missing the consensus estimate of a $0.06 profit. The quarter absorbed $35.42 million in acquisition and earn-out costs plus $3.83 million in restructuring charges tied to the company’s U.S. weight-loss strategy shift. Adjusted for those charges and other items, the company’s adjusted net income came to $6.5 million.
Gross margin at Hims & Hers fell to 57% from 74% a year earlier as lower-margin branded weight-loss products and international businesses grew as a share of sales. International growth was the bright spot, with Rest of World revenue up 321%. The company ended the quarter with 2.79 million subscribers, up 13% YoY, and its monthly revenue per average subscriber climbed to $105 from $81. Even so, net subscribers fell by 100,000 from the prior quarter as the company held back domestic weight-loss marketing.
Management at Hims & Hers tightened its full-year 2026 revenue guidance to $3.13 billion to $3.15 billion and reduced its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) outlook to $257 million to $277 million. For Q4 2026, the company guided revenue to $875 million to $895 million, below the $954.58 million consensus estimate. Executives said they intentionally paced marketing spend ahead of platform expansions planned for Q4.
CEO Andrew Dudum of Hims & Hers framed the quarter as an investment in the customer: “In healthcare, whoever owns the customer relationship wins, and that’s exactly what we’re building toward at Hims & Hers.” That strategy includes shifting the U.S. weight-loss offering toward access to branded glucagon-like peptide-1 (GLP-1) medications, with compounded versions offered only on a limited scale.
Hims & Hers Drops Far Harder Than Teladoc and Novo Nordisk
Teladoc Health (NYSE:TDOC) stock is at $8.72, down 3%. Meanwhile, Novo Nordisk (NYSE:NVO | NVO Price Prediction) stock is at $40.61, down 2%. Both declines are far softer than the drop at Hims & Hers, which marks the selloff as company-specific.
On October 28, Teladoc reported revenue of $605.10 million, topping estimates as its BetterHelp unit leaned into insurance-covered therapy. Back on August 4, Novo Nordisk said U.S. list prices for Wegovy and Ozempic would fall to $675 starting January 1, 2027. That pricing adjustment shapes the branded GLP-1 market Hims & Hers now depends on.
Zepbound maker Eli Lilly (NYSE:LLY) is another key branded GLP-1 supplier. Hims & Hers plans to add Zepbound and Eli Lilly’s oral drug Foundayo to the Wegovy pen and pill it already offers through Novo Nordisk. Eli Lilly stock is up 1% today to $1,423.19.
How Hims & Hers’ Business Model Differs From Its Peers
Direct-to-consumer subscriptions sit at the core of Hims & Hers, with customers billed on a recurring basis for treatments across weight loss, sexual health, hair and other categories. Teladoc leans on employers, health plans and health systems through its Integrated Care business, and it’s steering BetterHelp toward insurance-covered services. Contracts give Teladoc a firmer base, while Hims & Hers relies on marketing and retention to keep growing.
Novo Nordisk sits further up the chain as a drug manufacturer selling through traditional pharmacy and payer channels. As Hims & Hers moves toward branded drugs from Novo Nordisk and Eli Lilly, more of its sales come from products it doesn’t make, which weighs on its margins. International expansion, including the Eucalyptus acquisition, adds another lower-margin layer for the company.
What Comes Next for Hims & Hers After the Profit Cut
A key question for Hims & Hers is whether the Q4 platform expansions and a broader branded GLP-1 lineup can restart subscriber growth. Management expects another quarter of subscriber weakness in Q4 before increasing marketing into the seasonally stronger new-year period. Shareholders can watch for signs that gross margin pressure is relieving, which management expects as the mix shift slows.
Bulls have rapid revenue growth, higher revenue per subscriber and rising international sales at Hims & Hers on their side. On the bear side, the company carries a GAAP loss, heavier convertible debt and a margin profile that’s shrinking as it grows. Traders may prefer a cautious approach until the subscriber question at Hims & Hers resolves.
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David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk. His work has appeared in 24/7 Wall St., The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, MarketScreener, TalkMarkets, Finmasters, and others. With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.
