Hims & Hers Stock Slips Post Y/Y Q3 Earnings Decline, Margins Contract

Hims & Hers Health, Inc. HIMS delivered an earnings per share (EPS) of 6 cents in third-quarter 2025, down 81.3% from the year-ago period’s EPS of 32 cents.

HIMS’ Revenues in Detail

Hims & Hers registered revenues of $598.9 million in the third quarter, up 49.2% year over year. The figure topped the Zacks Consensus Estimate by 2.6%.

Solid revenues from both the Online and Wholesale channels drove the top line.

Shares of this company lost nearly 5.9% till yesterday’s close.

Hims & Hers’ Segment Details

Hims & Hers’ operations consist of two channels — Online Revenues and Wholesale Revenues.

In the quarter under review, Online Revenues of $589.1 million reflected a surge of 50.1% year over year on a reported basis.

During the reported quarter, subscribers were 2.5 million (up 20.7% year over year). Per management, growth in subscribers was primarily driven by increased traffic to HIMS’ platform (through websites and mobile applications) as a result of its marketing activities, improved onsite and customer onboarding experiences, and consumer adoption of personalized offerings across its business.

Monthly online revenue per average subscriber increased 19.4% year over year to $80 in the third quarter, primarily resulting from subscriber uptake of personalized offerings across HIMS’ business, along with changes in product mix and the impact of a recent acquisition.

Wholesale Revenues totaled $9.9 million, up 9.9% year over year.

Hims & Hers Health, Inc. Price, Consensus and EPS Surprise

Hims & Hers Health, Inc. price-consensus-eps-surprise-chart | Hims & Hers Health, Inc. Quote

HIMS’ Margin Analysis

In the third quarter, Hims & Hers’ gross profit increased 39.1% year over year to $442.1 million. However, the gross margin contracted 536 basis points (bps) to 73.8%.

Marketing expenses increased 27.4% year over year to $232.2 million, while technology and development expenses jumped 92.4% year over year to $40.6 million. General and administrative expenses rose 80.8% year over year to $80.7 million, while operations and support expenses increased 61.7% year over year to $76.8 million. Operating expenses of $430.3 million increased 45.6% year over year.

Operating profit totaled $11.8 million, reflecting a 47.2% plunge from the year-ago quarter. The operating margin in the third quarter contracted 360 bps to 1.9%.

Hims & Hers’ Financial Position

Hims & Hers exited third-quarter 2025 with cash and cash equivalents and short-term investments of $629.7 million compared with $1.14 billion at the second-quarter end.

Cumulative net cash provided by operating activities at the end of third-quarter 2025 was $238.7 million compared with $164.7 million a year ago.

HIMS’ Outlook

Hims & Hers has provided its revenue outlook for the fourth quarter and 2025.

The company projects revenues for the fourth quarter of 2025 in the range of $605 million to $625 million, reflecting an uptick of 26%-30% year over year. The Zacks Consensus Estimate is pegged at $617.4 million.

For the full year, HIMS projects revenues in the range of $2.335 billion to $2.355 billion (representing growth of 58%-59% from 2024 levels). The Zacks Consensus Estimate is pegged at $2.34 billion.

Our Take on Hims & Hers

Hims & Hers’ robust improvement in the top line and strength in both revenue channels in third-quarter 2025 were promising. The increase in subscribers and monthly online revenue per average subscriber during the quarter was encouraging.

HIMS launched a new specialty in women’s health, offering access to affordable treatment plans built specifically for women experiencing perimenopause and menopause (in October), and a new category in men’s health, offering access to innovative, affordable and personalized treatment plans for low testosterone (in September). In July, HIMS closed its acquisition of ZAVA, expanding its presence in the U.K. and establishing a foundation in other strategic markets such as Germany, Ireland and France. These raise our optimism about the stock.

However, Hims & Hers’ dismal bottom-line results in the third quarter of 2025 were disappointing. The contraction of both margins during the quarter does not bode well for the stock.

HIMS’ Zacks Rank and Key Picks

Hims & Hers currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space that have announced quarterly results are Boston Scientific Corporation BSX, West Pharmaceutical Services, Inc. WST and Exact Sciences Corporation EXAS.

Boston Scientific, carrying a Zacks Rank of 2 (Buy), reported third-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion outpaced the consensus mark by 1.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Scientific has a long-term estimated growth rate of 16.4%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.4%.

West Pharmaceutical reported third-quarter 2025 adjusted EPS of $1.96, beating the Zacks Consensus Estimate by 17.4%. Revenues of $804.6 million surpassed the Zacks Consensus Estimate by 2.4%. It currently carries a Zacks Rank #2.

West Pharmaceutical has a long-term estimated growth rate of 9.8%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.5%.

Exact Sciences reported third-quarter 2025 adjusted EPS of 24 cents, beating the Zacks Consensus Estimate by 84.6%. Revenues of $850.7 million surpassed the Zacks Consensus Estimate by 4.9%. It currently sports a Zacks Rank #1.

Exact Sciences has a long-term estimated growth rate of 30.1%. EXAS’ earnings surpassed estimates in each of the trailing four quarters, the average surprise being 352.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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