Hims & Hers Health (NYSE:HIMS) delivered strong revenue and subscriber growth in the third quarter, though profitability and guidance revisions tempered investor enthusiasm. Shares traded near flat in U.S. premarket activity on Tuesday following the results.
The telehealth company reported adjusted earnings per share of $0.06 on revenue of $599 million, compared to analyst estimates of $0.10 and $580.4 million, respectively. The revenue beat was driven by ongoing expansion in the company’s personalized care offerings, with subscriber numbers rising 21% year-over-year to approximately 2.5 million.
Online revenue surged 50% from a year earlier to $589 million, while wholesale sales climbed 10% to $9.9 million.
For the fourth quarter, Hims & Hers expects revenue between $605 million and $625 million and adjusted core profit between $55 million and $65 million, implying a 9%–10% margin. Analysts had forecast $629.63 million in revenue.
The company also narrowed its full-year outlook, now projecting 2025 revenue between $2.335 billion and $2.355 billion, up from prior guidance of $2.3 billion–$2.4 billion. Full-year adjusted core profit is expected to range from $307 million to $317 million, compared with $295 million–$335 million previously.
CFO Yemi Okupe cautioned that higher investments could weigh on short-term profits but emphasized they are aimed at strengthening long-term cash flow. Okupe said Hims is working to expand its supply chain capacity for GLP-1 weight-loss medications, particularly after earlier disruptions linked to the discontinuation of Wegovy sales impacted revenue.
“Investor expectations had come down ahead of earnings, so softer fourth-quarter guidance was not a surprise. However, there’s still plenty to debate on how long headwinds to core growth will persist, the timing and contribution of new product launches and implications of rising investment on margins near term,” said analysts at Morgan Stanley, including Craig Hettenbach and John Park, in a client note.