Hims & Hers Sinks 9% on EBITDA Guidance Cut as CEO Says He’d Take Subscriber Losses “Every Time”
Hims & Hers Health (HIMS) cut its 2026 adjusted EBITDA guidance to $257M-$277M, marking the third reduction this year. Revenue rose 49% to $890.4M, but gross margin fell to 57% from 74%. Subscribers decreased by 103,000 due to reduced marketing before adding Eli Lilly's Zepbound to its drug offerings. The stock fell 9%.
How this was made
The 30-second read
Why it matters
The guidance cut reflects operational challenges despite revenue growth, suggesting near‑term earnings pressure.
Market read
The 9% drop and guidance cut make this a high‑impact news item for traders focused on growth health stocks.
What to watch
Potential upside from new Eli Lilly Zepbound partnership and higher revenue per subscriber.
Background
Hims & Hers reported a 49% revenue jump but a sharp margin decline and subscriber loss after pausing marketing.
Ticker impact
Hims & Hers cut its 2026 adjusted EBITDA guidance to $257M-$277M, its third cut this year, causing a 9% share drop.
downward pressure as investors price in lower EBITDA expectations
The new guidance is materially below consensus and follows two prior cuts, indicating deteriorating fundamentals.
Market effects
Weight‑loss and telehealth sector may see broader scrutiny as margins compress.
U.S. biotech/health‑tech stocks could face short‑term weakness.
Limited to investors tracking U.S. growth‑stage health companies.
Counterpoint
If the subscriber loss is temporary and margin recovery occurs, the stock could rebound on a bounce‑back narrative.
Key entities
- companyHims & Hers Health
Telehealth and consumer wellness provider.
- companyEli Lilly
Pharmaceutical partner supplying Zepbound.
- companyNovo Nordisk
Partner in weight‑loss drug portfolio.
