Nov 9 (Reuters) – Hims & Hers Health cut its full-year core profit forecast on Monday as higher costs tied to branded weight-loss drugs and international expansion pressured margins. Shares were down 2% in volatile after-hours trading. Growing weight-loss business and international expansion have helped increase the company’s subscriptions and monthly revenue per customer, but […]
Health
Hims & Hers cuts 2026 profit forecast as margins contract
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Nov 9 (Reuters) – Hims & Hers Health cut its full-year core profit forecast on Monday as higher costs tied to branded weight-loss drugs and international expansion pressured margins.
Shares were down 2% in volatile after-hours trading.
Growing weight-loss business and international expansion have helped increase the company’s subscriptions and monthly revenue per customer, but its shift to costlier branded weight-loss drugs has pressured gross margins.
Hims’ subscriber base grew 13% to nearly 2.8 million, while monthly revenue per average subscriber increased 30% to $105. Gross margin fell to 57% from 74% a year earlier.
US revenue rose 21% to $657.1 million, while international revenue more than quadrupled to $233.3 million.
The company now expects 2026 core earnings of $257 million to $277 million, down from its previous forecast of $275 million to $325 million.
Total quarterly revenue rose 49% to $890.4 million, slightly below analysts’ average estimate of $892.9 million, according to data compiled by LSEG.
Hims posted a quarterly net loss of $33 million, compared with net income of $15.8 million a year earlier.
(Reporting by Kunal Das in Bengaluru; Editing by Sahal Muhammed)