Hims & Hers Stock Drops 17% on Weak Fourth-Quarter Guidance Amid Upcoming Peptide Expansion

Hims & Hers Health shares experienced a sharp 17% decline following the release of its third-quarter financial report. While third-quarter metrics aligned with general expectations, the company's fourth-quarter revenue outlook failed to meet analyst projections. Consequently, the stock has now fallen by more than 40% over the course of the year.

During the third quarter, total sales grew 49% year over year to $890.4 million, sitting near the midpoint of previous company guidance. Domestic revenue advanced 21% to $657.1 million, and international revenue surged 321% to $233.3 million. Monthly online revenue per subscriber increased 30% to $105, and total subscribers reached nearly 2.79 million, though this figure represents a sequential drop of 100,000 users due to reduced marketing for weight-loss medications.

Gross margins contracted by 1,700 basis points year over year to 57%, driven by higher sales of lower-margin branded weight-loss treatments and the expansion of international operations. Meanwhile, marketing expenses improved as a share of revenue, dropping to 28% from 39% a year earlier. Adjusted earnings per share declined to $0.03 from $0.08, while adjusted EBITDA edged up 5% to $82.4 million.

Looking ahead, Hims & Hers plans to introduce a new Peptides+ category by the end of the month, offering compounds such as sermorelin, glutathione, and NAD+, with additional soft-tissue recovery peptides scheduled for later introduction. However, management noted that the initial peptide rollout will not materially change fourth-quarter financial results. Projected fourth-quarter revenue is expected to land between $875 million and $895 million, compared to analyst forecasts of $955.1 million, with adjusted EBITDA anticipated between $70 million and $90 million.

What to watch next: Monitor the official launch of the Peptides+ category at the end of the month and any updates regarding regulatory adjustments for advanced peptide compounds.