Hims & Hers Health, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for Q3 2026 was $890.4 million, a 49% increase year-over-year compared to $599.0 million in Q3 2025.
• Domestic (United States) revenue grew 21% year-over-year to $657.1 million, while international (Rest of the World) revenue surged 321% year-over-year to $233.3 million.
• Gross margin decreased to 57% in Q3 2026 from 74% in Q3 2025.
• Net loss for Q3 2026 was $33.0 million, compared to net income of $15.8 million in Q3 2025.
• Adjusted EBITDA for Q3 2026 was $82.4 million, up from $78.4 million in Q3 2025.
• Net cash provided by operating activities was $65.4 million in Q3 2026, down from $148.7 million in Q3 2025.
• Free Cash Flow was $26.0 million in Q3 2026, compared to $79.4 million in Q3 2025.
• For the nine months ended September 30, 2026, total revenue was $2.25 billion, a 30% increase year-over-year.
• Nine-month Adjusted EBITDA was $187.0 million, down from $251.7 million in the prior year period.
• Nine-month Free Cash Flow was $10.8 million, compared to $60.0 million in the prior year period.
• Cash and cash equivalents increased to $605.6 million as of September 30, 2026, from $228.6 million as of December 31, 2025.
• Total liabilities increased to $3.19 billion as of September 30, 2026, from $1.61 billion as of December 31, 2025.
• Convertible senior notes, net, increased to $1.37 billion as of September 30, 2026, from $972.6 million as of December 31, 2025.

Guidance and Future Outlook:

• Full-year 2026 revenue guidance was tightened to a range of $3.13 billion to $3.15 billion.
• Full-year 2026 Adjusted EBITDA guidance was reduced to a range of $257 million to $277 million, reflecting an Adjusted EBITDA margin of 8% to 9%.
• Fourth quarter 2026 revenue guidance is $875 million to $895 million.
• Fourth quarter 2026 Adjusted EBITDA guidance is $70 million to $90 million, reflecting an Adjusted EBITDA margin of 8% to 10%.
• Management indicated that marketing spend was intentionally paced ahead of planned platform expansions in the fourth quarter to support growth into 2027.

Business Segments and Product Lines:

• Subscribers grew to nearly 2.8 million (2,788 thousand) at the end of Q3 2026, a 13% increase year-over-year.
• Monthly Revenue per Average Subscriber increased 30% year-over-year to $105 in Q3 2026, up from $81 in Q3 2025.
• The company is expanding treatments and specialties available on its platform and rolling out an AI-native experience to support customer care.
• A strategic shift in the first quarter of 2026 evolved the United States weight loss offering to match the global approach of providing access to branded GLP-1 medications and limited-scale access to compounded GLP-1 medications.
• International revenue growth was driven by the company's expansion into global markets.

Market and Competitive Landscape:

• The company positions itself as the leading global health and wellness platform, aiming to become the first place people turn for daily health needs globally.
• Management emphasizes that owning the customer relationship is critical in healthcare.
• The company is investing in infrastructure and innovation to scale its business and expand internationally.

Risks and Challenges:

• Gross margin declined significantly from 74% in Q3 2025 to 57% in Q3 2026.
• The company reported a net loss of $33.0 million in Q3 2026, reversing a net income of $15.8 million in the prior year period.
• Free Cash Flow decreased to $26.0 million in Q3 2026 from $79.4 million in Q3 2025.
• The company incurred $41.9 million in restructuring and other related charges for the nine months ended September 30, 2026, primarily related to the 2026 US weight loss announcement.
• Significant non-cash charges included $143.5 million in stock-based compensation and $89.6 million in depreciation and amortization for the nine months ended September 30, 2026.
• Forward-looking statements carry risks regarding regulatory environment, legal requirements, market acceptance, and the outcome of litigation.

Management Commentary and Tone:

• CEO Andrew Dudum stated that the company is building a platform people can rely on for their health every day, in every category, and every market.
• CFO Yemi Okupe noted that revenue growth accelerated for the second consecutive quarter, with international revenue growing more than 300% year-over-year.
• Management expressed confidence in the company's strong balance sheet and durable cash flow generation, which provide flexibility to invest behind long-term objectives.
• The tone reflects a focus on strategic decisions for durable, multi-year growth despite short-term margin pressures.

Other Key Points:

• The company revised its definition of Adjusted EBITDA in Q3 2026 to include foreign currency gains and losses, net, due to recent international expansion.
• The company revised its definition of Adjusted EBITDA in Q1 2026 to include restructuring and other related charges associated with the US weight loss strategic shift.
• Acquisitions and business investments were significant, with $318.1 million spent on acquisition of businesses (net of cash acquired) and $130.3 million in deferred consideration paid for acquisitions during the nine months ended September 30, 2026.
• The company issued $390.4 million in convertible senior notes, net of debt discount, during the nine months ended September 30, 2026.
• Accounts payable increased significantly to $515.7 million as of September 30, 2026, from $143.3 million as of December 31, 2025.
• Receivables, net, increased to $427.8 million as of September 30, 2026, from $32.1 million as of December 31, 2025.
• Goodwill increased to $1.11 billion as of September 30, 2026, from $278.3 million as of December 31, 2025.
• Intangible assets, net, increased to $397.3 million as of September 30, 2026, from $196.1 million as of December 31, 2025.
• Deferred acquisition payable increased to $478.6 million (current) and $84.5 million (long-term) as of September 30, 2026.
• Earn-out consideration increased to $86.6 million (current) and $84.1 million (long-term) as of September 30, 2026.
• The company incurred $62.5 million in legal contingencies for the nine months ended September 30, 2026.
• No share repurchases were made in the nine months ended September 30, 2026, compared to $9.5 million in the prior year period.