Hims & Hers stock just fell 16.5% to about US$19 in regular trading, wiping out a chunk of short term gains after Q3 2026 results hit the tape. The selloff lands on a quarter where revenue reached US$890.4m and the business generated US$82m of adjusted earnings before interest, tax, depreciation and amortisation, even as it still reported a US$33m loss. Traders are reacting to the profit squeeze and guidance reset. Longer term investors are now weighing a fast growing digital health platform with rising cash generation against a valuation that already bakes in ambitious multi year expectations.
Love the top line momentum at Hims & Hers Health, but uneasy about a quarter that still ends in a US$33m loss and a guidance reset. This earnings season might be a good moment to benchmark it against a 42 profitable AI stocks that aren't just burning cash
Q3 2026 Earnings Summary
- Revenue (Q3 2026 vs Q3 2025): US$890.4m vs. US$599.0m (up roughly 49% year over year)
- Net Income/Loss (Q3 2026 vs Q3 2025): loss of US$33.0m vs. profit of US$15.8m (swung back into the red)
- Basic EPS (Q3 2026 vs Q3 2025): loss of US$0.14 per share vs. earnings of US$0.07 per share (moved from profit to loss)
- Adjusted EBITDA Margin (Q3 2026): US$82m on US$890.4m of revenue (about 9% margin, reflecting pressure from mix shift into branded weight loss)
AI now touches most Hims & Hers weight-loss users and providers. Ask Charlie what Hims & Hers AI shift really changed.
Hims & Hers Verticalisation Story Meets Margin Reality
The bullish analyst narrative on Simply Wall St argues that Hims & Hers can turn owned infrastructure and AI into a real operating engine, not just a slide in a deck.
"Vertical integration of diagnostics and peptide manufacturing, including at-home blood collection and a U.S. peptide API facility, can position Hims & Hers Health as a default provider for complex, personalized regimens."
The latest quarter shows that build-out in action, with weight loss, hormonal therapies and international markets all running through Hims & Hers infrastructure. Revenue reached US$890.4m and adjusted EBITDA was US$82m, so scale and cash generation are appearing. Yet gross margin compressed and GAAP results still showed a US$33m loss. This indicates that the vertical model is not yet delivering the cleaner profitability that this narrative presents as the end goal.
That disagreement has a full argument behind it. → Uncover the higher Fair Value this Narrative argues for.
Hims & Hers Margins Underscore Bearish Concerns
The bearish analyst Narrative on Simply Wall St argues that complexity from expansion could outpace profit conversion at Hims & Hers.
"The main thing that has to go right is that Hims & Hers Health turns heavy investment in AI, at-home diagnostics, new therapies and international expansion into durable subscriber retention and efficient cross sell instead of simply higher operating complexity."
The latest quarter leans toward the worry, not the hope. Revenue jumped, yet gross margin slipped to 57%, adjusted EBITDA guidance was cut, and the business moved from profit a year ago to a US$33m loss. Subscriber count even dipped sequentially after the weight loss marketing pullback.
Hunt For Earnings Disconnects
Hims & Hers Health shows that rapid revenue growth can still coincide with volatile margins and sharp share price moves. The real opportunity sits in finding stocks that could be undervalued before the market catches up.
- Company 1 - 26% below our estimate - expand a low cost, digital first banking platform as customers consolidate cards, savings and credit into one ecosystem.
- Company 2 - 25% below our estimate - scale optical packaging capacity as hyperscale data center clients ramp AI driven bandwidth orders into structured manufacturing programs.
- Company 3 - 33% below our estimate - stitch productivity software, cloud infrastructure and AI tools into bundled subscriptions that deepen usage among large enterprise customers.
Those are three of them. See the full list of 37 companies trading below our fair value estimates →
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