Hims & Hers forecasts Q4 revenue below estimates as gross margin falls
Overview
US health and wellness platform's Q3 revenue rose 49% yr/yr, slightly missing analyst expectations
Company posted a net loss of $33 mln, reversing a profit in the prior year
Company narrowed revenue outlook and cut full-year adjusted EBITDA guidance
Shares of the company fell 3% in extended trading
Outlook
Expects Q4 revenue of $875 mln to $895 mln and adjusted EBITDA of $70 mln to $90 mln, vs analysts' estimates of $953.5 mln and $106.8 mln, respectively
Company tightens 2026 revenue guidance to $3.13 bln-$3.15 bln
Company lowers 2026 adjusted EBITDA guidance to $257 mln-$277 mln
Result Drivers
INTERNATIONAL EXPANSION - Co said international revenue rose more than 300% yr/yr, outpacing domestic growth
SUBSCRIBER GROWTH - Co reported 13% yr/yr increase in subscribers to nearly 2.8 mln
HIGHER REVENUE PER SUBSCRIBER - Monthly revenue per average subscriber increased 30% yr/yr
GROSS MARGIN - Gross margin fell to 57% from 74% a year earlier, as cost of revenue rose to $381.2 mln from $156.9 mln
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Miss* | $890 mln | $892.91 mln (12 Analysts) |
Q3 Net Loss | $33 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the healthcare facilities & services peer group is "buy"
Wall Street's median 12-month price target for Hims & Hers Health, Inc. is $31.00, about 19.2% above its November 6 closing price of $26.00
The stock recently traded at 77 times the next 12-month earnings vs. a P/E of 93 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)