$HIMS · Hims & Hers Health, Inc.
Hims & Hers filed its Q3 FY2026 10-Q. Revenue grew 48.6% YoY to $890.4M, but the company swung to a GAAP net loss of $33M (EPS -$0.14) versus a $15.8M profit a year earlier. Gross margin fell to 57.2% and operating margin was -7.4%. Cost of revenue jumped 143% YoY to $381.2M, while G&A expenses rose 88% to $151.5M. The balance sheet shows goodwill ballooning to $1.11B from $278.3M and total liabilities rising to $3.19B from $1.61B, reflecting acquisitions.
- Revenue rose 49% YoY to $890.4M in Q3 FY2026.
- Net loss was $33M versus a $15.8M profit a year earlier.
- Cost of revenue surged 143% YoY to $381.2M.
- G&A expenses jumped 88% YoY to $151.5M.
- Goodwill climbed to $1.11B from $278.3M at year-end 2025.
Shares fell 11.77% in the regular session to $22.94, with extended-hours trading down another 2.66% to $22.33, signaling investors are punishing the swing to losses despite strong top-line growth.
Hims' rapid revenue growth is being consumed by surging costs, flipping it from profit to loss and pressuring the stock.
The telehealth sector is rewarding profitable growth; Hims' margin compression and acquisition-driven cost surge contrast with peers prioritizing operating leverage.
Rising cost of revenue (up 143%) and G&A (up 88%) are eroding profitability; a potential valuation allowance on deferred tax assets could trigger a non-cash charge.