Shares of Hims & Hers (NYSE:HIMS) dropped roughly 16% in premarket trading on Tuesday after the company reported an unexpected first-quarter loss, missing Wall Street earnings expectations as weaker performance in its U.S. business weighed on results.
Hims & Hers posted a net loss of $92.1 million, or $0.40 per share, for the first quarter of 2026, compared with net income of $49.5 million, or $0.20 per share, in the same period last year.
Analysts had expected the company to report a profit of approximately $0.01 per share.
Revenue Growth Slows as U.S. Sales Decline
Quarterly revenue increased 4% year-on-year to $608.1 million from $586.0 million in the prior-year quarter.
However, revenue still came in below analyst expectations of $616.5 million.
The company’s American operations were a key drag on performance, with U.S. revenue declining 8% year-on-year to $529.9 million.
Adjusted EBITDA fell 51% from a year earlier to $44.3 million, missing analyst estimates by roughly 5.5%, according to Morgan Stanley.
The earnings report marked the company’s first EBITDA miss since becoming public.
Gross margin also weakened, contracting 360 basis points year-on-year to 69.9%, excluding certain charges.
“Management has an ambitious strategy that’s prioritizing growth and will require patience on margins. This was the first time it missed on EBITDA and GM continues to trend lower,” Morgan Stanley analyst Craig Hettenbach said in a note.
GLP-1 Strategy Shift Impacts Margins
Earlier this year, Hims & Hers launched a copy version of Novo Nordisk’s Wegovy pill but later withdrew the product following legal action from Novo and heightened regulatory scrutiny.
The company has since shifted strategy and is now working with Novo Nordisk to distribute branded GLP-1 treatments, while agreeing to discontinue its own lower-cost and higher-margin alternatives.
“In the first quarter, we made a strategic pivot that expanded our assortment of branded GLP-1 products, and early demand signals show our consumer reach broadening meaningfully,” said Yemi Okupe, Chief Financial Officer.
“With nearly 2.6 million subscribers across a diverse breadth of specialties, we have the scale to invest in technology and operations to leverage our closed-loop ecosystem,” Okupe added.
Company Raises Revenue Forecast but Cuts EBITDA Outlook
Despite the weaker earnings performance, Hims & Hers increased its full-year 2026 revenue guidance, citing expectations for stronger demand across its personalized healthcare offerings.
The company now expects annual revenue between $2.8 billion and $3.0 billion, compared with its previous forecast range of $2.7 billion to $2.9 billion.
At the same time, management reduced its EBITDA outlook by approximately 7.5%.
Hims & Hers now expects full-year EBITDA at a midpoint of roughly $312.5 million.