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Market news · Nov 9, 5:02 PM ET

Hims & Hers cuts 2026 profit outlook as gross margin falls to 57%

Hims & Hers Health lowered its full-year 2026 profit forecast on November 9 as costs tied to branded weight-loss drugs and international expansion squeezed margins, even though quarterly revenue rose 49%. For US investors, the cut matters for the telehealth stock HIMS and for the wider market for digital health and weight-loss treatments, where margin pressure is now visible alongside fast growth.

By Flash Finance US desk (written with AI assistance) · Editor: Kokila

Margin pressure behind the cut

Reuters reported that the shift toward costlier branded weight-loss drugs has weighed on gross margins, even as that business and international expansion lifted subscriptions and revenue per customer. Gross margin fell to 57% in the quarter from 74% a year earlier. Investing.com, citing the company's outlook, said that heavier customer acquisition spending and changes in product mix also weighed on guidance.

Quarterly results

  • Revenue rose 49% to $890.4 million, slightly below an analyst average of $892.9 million, according to data compiled by LSEG.
  • The company posted a net loss of $33 million, compared with net income of $15.8 million a year earlier.
  • US revenue rose 21% to $657.1 million, while international revenue more than quadrupled to $233.3 million.
  • Subscribers grew 13% to nearly 2.8 million.

Stock reaction and why it matters

Reuters said shares were down 2% in volatile after-hours trading on Monday. Investing.com reported that the stock fell 3% during Monday's regular session. The two reports describe different trading windows, so the size of the move depends on which measure is used.

For US investors, the report is a reminder that Hims & Hers is growing quickly while its profitability is under pressure. The stock is the most direct exposure. The results also bear on the broader telehealth and weight-loss treatment market, where branded drug costs are a central factor for providers. The company did not say in the sources reviewed how much of the margin pressure it expects to reverse in future periods.

HIMS stock page
Hims & Hers Healthtelehealthweight-loss drugsdigital healthhealth care

Sources

Written with AI assistance on Nov 9, 5:02 PM ET from the reports listed under Sources, and reviewed by our editor after publication. Before it was published, every figure was checked against those reports, and passages with figures that could not be found there were left out. It can still contain mistakes: read the sources before acting on anything. How we review. Not investment advice.