Hims & Hers Q3 2026 Earnings: Revenue Up 49%, Gross Profit Up 15%, Gross Margin Down to 57%

Hims & Hers grew revenue 49% in the third quarter of 2026, to $890.4 million, its second straight quarter of faster growth. Gross profit grew 15%. The difference is the cost of what it sells: cost of revenue rose 143% to $381.2 million, and gross margin fell to 57% from 74% a year earlier. In the United States it now sells mainly branded weight-loss drugs, bought from their manufacturers, where it used to offer mainly compounded versions, and its June acquisition of the Australian platform Eucalyptus added international revenue and costs. Net loss was $33.0 million, and the company cut its full-year adjusted EBITDA guidance to $257 million to $277 million.

Revenue grew 49%, gross profit 15%​

Revenue was $890.4 million against $599.0 million (earnings release). United States revenue rose 21% to $657.1 million and the rest of the world more than quadrupled to $233.3 million, a line that now includes Eucalyptus. Monthly revenue per average subscriber rose 30% to $105. Gross profit was $509.2 million against $442.1 million.

The 10-Q explains the cost side: product and packaging costs rose 176%, shipping 64% and medical consultation costs 32%. The increases were "primarily due to our weight loss offerings, some of which have higher product and packaging costs and shipping costs," including as a result of the shift Hims & Hers announced in the first quarter: in the United States it now offers branded GLP-1 medications and compounded versions only "on a limited scale." The filing also notes a shift toward "shorter and more frequent shipping cadences, which has impacted our gross margins."

The treemap shows cost of revenue, $381.2 million, now the largest cost, ahead of marketing at $247.3 million. General and administrative expense nearly doubled to $151.5 million, including $22.8 million of acquisition and earn-out costs and $36.9 million of stock-based compensation. The operating loss was $66.1 million against operating income of $11.8 million. A $21.1 million gain on equity securities and a $13.2 million tax benefit narrowed the net loss to $33.0 million.

The ledger shows the margin sliding for three years​

Each row is one reported period: revenue as a negative credit, cost of revenue as a debit and Equity:Adjustments as net income, negative for a loss. Gross margin, by our computation from those rows, was 82.0% in 2023, 79.5% in 2024 and 73.8% in 2025, then 63.8% in the June quarter and 57.2% in September. Hims & Hers was profitable in 2024 and 2025, $126.0 million and $128.4 million; this year's second and third quarters lost $86.3 million and $33.0 million.

A lower margin is not a problem by itself if revenue grows enough to make up for it, and the company is selling more per customer. It is the reason, though, that 49% revenue growth produced a smaller adjusted EBITDA margin, 9% against 13%, and a loss. A small business reselling someone else's product instead of making its own faces the same trade: more revenue per order, less of it kept.

Fewer subscribers than in June​

The release reports nearly 2.8 million subscribers, 2,788,000, up 13% from a year earlier. The second-quarter release reported 2,891,000, so the base shrank by about 103,000 in the quarter, by our computation, while revenue per subscriber rose. The CFO said Hims & Hers was "intentionally pacing marketing spend ahead of several planned expansions to our platform in the fourth quarter"; marketing grew 7%, much slower than revenue.

Cash flow weakened with the margin. Operating cash flow was $65.4 million against $148.7 million, and free cash flow $26.0 million against $79.4 million. The balance sheet carries $478.6 million of deferred acquisition payments due within a year, mostly the remaining Eucalyptus installments, against $605.6 million of cash and $106.6 million of short-term investments.

What to watch in the fourth quarter​

• The guide. Hims & Hers expects fourth-quarter revenue of $875 million to $895 million and adjusted EBITDA of $70 million to $90 million; full-year revenue of $3.13 billion to $3.15 billion and adjusted EBITDA of $257 million to $277 million.
• Gross margin. Whether it settles near 57% or keeps falling as branded drugs become a larger share of weight-loss revenue.
• Subscribers. A second quarterly decline would mean higher revenue per customer is replacing customer growth rather than adding to it.
• Acquisition payments. The Eucalyptus installments run through the 18-month anniversary of the June closing.