Hims & Hers Health is expected to report Q3 earnings tonight at 4:05 PM ET, and shares plunged 10.54% today, even after the company announced a deal involving Lilly’s GLP-1 weight-loss treatments just days before earnings.

Wall Street expects $892.77 million in revenue, near the top of management’s $880 million to $900 million guidance range.

However, profitability remains a major concern. Gross margins recently fell to 64% from 76%, reflecting a changing revenue mix toward branded GLP-1 medications and the Eucalyptus business.

Looking further ahead, management is targeting $6.5 billion in annual revenue and $1.3 billion in adjusted EBITDA by 2030.

The big question tonight is whether Hims & Hers can prove its rapidly expanding weight-loss business can deliver sustainable profits, or if the company will face continued margin pressure.

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