Hims & Hers Just Warned Investors for the Third Time This Year. CEO Andrew Dudum Calls the Subscriber Losses a Trade He’ll Make ‘Every Time’

Hims & Hers Health cut its 2026 profit outlook on Monday for the third time this year, reported a surprise $33 million quarterly loss, and heard its CEO, Andrew Dudum, tell analysts that the subscriber losses behind the numbers are a trade he will make “every time.”

The stock (NYSE: HIMS) had already fallen 12% during Monday’s regular session, to $22.94, on volume nearly four times Friday’s, before the report landed after the close. It slipped another 2% to 3% in after-hours and premarket trading. At Monday’s close the shares sit 44% below where they were a year ago today and two-thirds below their February 2025 high of $68.74.

Three cuts in a row read as a company that keeps finding its profit plan was too optimistic, and that is the reading the market priced on Monday; it is also a company that still generates cash and is choosing to spend it on growth, which is the case Dudum made on the call. Each of the three updates was a warning about profit even when the revenue range went up with it, and if you own the stock, the question is whether you believe the fourth plan.

What the quarter showed

Revenue rose 49% from a year earlier to $890.4 million, a hair under the $893 million analysts expected. Everything under the top line went the other way. The company lost $33.0 million, or 14 cents a share, against a $15.8 million profit, or 6 cents a share, in the same quarter last year. Analysts had expected a 6-cent profit. Gross margin fell to 57% from 74%, which the company blamed on the growing share of lower-margin branded weight-loss drugs, especially in the international business it bought with Eucalyptus in June.

Subscribers ended the quarter at 2.79 million, up 13% from a year ago but down 100,000 from the prior quarter. Management said that drop was deliberate: it pulled back weight-loss marketing in the U.S. while it prepared to add Eli Lilly’s Zepbound and Foundayo to the Novo Nordisk drugs it already sells, and it consolidated brands in the U.K., Germany and Australia. Adjusted EBITDA was $82.4 million, a 9% margin. Free cash flow was $26.0 million, and the company ended the quarter with more than $710 million of cash and investments. An $18 million slice of membership revenue was deferred from the quarter into the fourth quarter.

The third cut, in the company's own numbers

The guidance that matters is adjusted EBITDA for 2026, and the midpoint has come down at every report this year:

• February 23: $300 million to $375 million, a $337.5 million midpoint.
• May 11: $275 million to $350 million, a $312.5 million midpoint.
• August 10: $275 million to $325 million, a $300 million midpoint.
• November 9: $257 million to $277 million, a $267 million midpoint.

That is $70.5 million, or 21%, below the plan the company gave investors in February, and $33 million below the August range. Wall Street had been at $294.3 million. The revenue range was narrowed to $3.13 billion to $3.15 billion from $3.1 billion to $3.3 billion, which cut the midpoint by $60 million and left it $70 million under the $3.21 billion consensus. Fourth-quarter revenue guidance of $875 million to $895 million is about 7% below what analysts had penciled in.

What management blamed, in order: “more aggressive strategic pricing and marketing actions” in the U.K. and Germany, the deferred membership revenue, which it said will cost at least $20 million of 2026 revenue and profit, and continued restraint on U.S. weight-loss marketing, which CFO Yemi Okupe said “may lead to an additional quarter of subscriber count headwinds.”

Dudum’s framing was direct. “Each of these choices trades near-term subscriber growth for a stronger position in the years that follow,” he said. “That’s a trade we will make every time.”

What the cut does to the valuation

At Monday’s close the company is worth $5.16 billion. Strip out the $710 million of cash and the enterprise value is about $4.45 billion. On February’s profit plan that was 13.2 times expected adjusted EBITDA. On Monday’s plan it is 16.7 times, at the same share price. The stock got more expensive by that measure even as it fell, because the profit plan shrank faster than the price. On sales it trades at 1.64 times the new revenue midpoint.

The same day it cut the outlook, the company put Andrew Huberman, the Stanford neuroscientist and podcast host, on its board, and its 8-K spelled out the terms: a $3.5 million a year advisory fee for two years, up to $1 million a year more for short-form videos, and $5 million a year for up to three years in podcast advertising paid to Scicomm Media, which he co-owns. That is at least $8.5 million a year in cash agreements with a new director, on top of the board retainer, from a company guiding to $267 million of adjusted EBITDA.

Huberman’s role is tied to the Peptides+ launch due later this month, which starts with sermorelin, glutathione, NAD+ and B12. The company said peptide revenue will not be material in the fourth quarter, and that it plans to add BPC-157 and TB-500 when regulators allow; both are compounded products the FDA has not approved. None of this is medical advice.

How the stock has traded after report days

Hims & Hers has now fallen the session after six of its last seven earnings reports. Three of those drops were 10% or worse: 22.3% after the February 2025 report, 12.4% after August 2025, and 14.1% after May 2026. Five sessions later the stock was lower in two of the three cases. Sixty sessions later it was higher in two of the three, by 45.5% and 26.2%, and lower by 16.0% in the third. Three cases do not make a rule, and Monday’s 11.8% fall came before the report rather than after it. The last session worse than Monday’s was July 29, when the Federal Trade Commission sued the company over data sharing and the stock lost 14.7%.

A retiree who bought at last year's high

Consider Gary, 66, retired, with about $1.8 million saved and a habit of managing it himself. If you hold the stock, his numbers are a template for your own. A year ago today, on November 10, 2025, the stock closed at $41.05, its highest close of the past 52 weeks. Say he bought 1,000 shares that day in his taxable brokerage account, for $41,050. At Monday’s close those shares are worth $22,940. He is down $18,110, or 44%, and $3,060 of that came on Monday alone. To get back to his purchase price the stock needs to rise 79%.

The position was 2.3% of his money when he bought it, so the loss is about 1% of his portfolio. That is the sizing lesson in one line: a stock that can lose two-thirds of its value in 21 months belongs in a slice of your money you can afford to be wrong about.

The year-end decision is the tax one. If he sells before December 31, the $18,110 loss offsets capital gains dollar for dollar. Against long-term gains taxed at 15%, that is worth about $2,716 of tax. If you have no gains to offset, $3,000 a year comes off your ordinary income, worth $660 a year in the 22% bracket, and the rest carries forward, about six years at that pace. One detail of timing matters. He bought on November 10 of last year, so a sale today counts as short-term; a sale on or after November 11 is long-term. Short-term losses go against short-term gains first, which are taxed at ordinary rates. If you want to own the stock again, the wash-sale rule means no repurchase for 30 days on either side of the sale.

The bottom line

The company grew revenue 49% and lost money doing it, trimmed its profit plan for the third time this year, and told you it will keep making the trade. The cash is real, the growth is real, and so is the 21% cut to the 2026 profit plan since February. If you hold it, size it as the volatile stock it has proven to be, and use the loss before year-end if you have gains to shelter. Your next checkpoint is the fourth-quarter report in February, when management has promised a 2027 outlook and a scorecard for the investments it is making now.

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