Hims & Hers Q3 Results Show Margin Contraction and Subscriber Decline
Hims & Hers (HIMS) reported third-quarter revenue of $890.4 million, a 49% increase year-over-year. However, the growth was offset by significant margin compression, with gross margins falling from 73.8% to 57.2%. Despite higher revenue per user, the company experienced a sequential decline of 100,000 subscribers. While international revenue saw a massive 321% surge to $233.3 million, much of this was driven by the acquisition of Eucalyptus, which contributed approximately $135 million. Additionally, free cash flow dropped significantly to $26 million from $79.4 million in the prior period, raising concerns regarding regulatory exposure and ongoing acquisition obligations.
Tickers: $HIMS
Topics: free cash flow gross margin contraction international expansion revenue growth subscriber decline
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