The Ledger

Hims & Hers grew third quarter revenue 49% to $890.4 million, but its gross margin fell to 57% from 74% and it swung to a $33.0 million net loss. UPDATE on our November 7 coverage of the Eli Lilly obesity drug agreement. The telehealth company’s Form 8-K earnings release, dated November 9, shows net income of negative $33.0 million against positive $15.8 million a year ago, while adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) rose to $82.4 million from $78.4 million. Adjusted EBITDA margin slid to 9% from 13%. Subscribers rose 13% to 2.79 million, and monthly revenue per average subscriber rose 30% to $105 from $81. U.S. revenue grew 21% to $657.1 million, while Rest of World revenue grew 321% to $233.3 million. Fourth quarter guidance is revenue of $875 million to $895 million and adjusted EBITDA of $70 million to $90 million. Full-year guidance is revenue of $3.13 billion to $3.15 billion and adjusted EBITDA of $257 million to $277 million. The release does not state the prior ranges, and its headline says the company reduced adjusted EBITDA guidance. Who it hits: telehealth and cash-pay competitors, drugmakers selling direct to patients, and health systems building weight-management programs against posted cash prices. So what: revenue per subscriber is climbing while margin per dollar falls, which is the pattern you would expect when a platform sells more branded drugs, though the release does not break out weight-loss revenue or say what drove the margin drop. It does say the company shifted its U.S. weight-loss offering in the first quarter toward branded GLP-1 (glucagon-like peptide 1) medications, with compounded versions offered “on a limited scale,” and booked $41.9 million of related restructuring charges over nine months, $28.5 million of it in cost of revenue. The release does not mention Lilly or Novo Nordisk by name. Confidence: High on the figures, which come from the filing; Low on cause, because the release does not state one.

Hims & Hers has now put $1.11 billion of goodwill on its balance sheet, up from $278.3 million at the end of 2025, and still owes $563.1 million in deferred acquisition payments. The same Form 8-K earnings release shows $318.1 million of cash paid for acquisitions, net of cash acquired, in the first nine months, plus $130.3 million of deferred consideration paid and $886.3 million of non-cash consideration. Acquisition, transaction and earn-out costs were $35.4 million in the third quarter. Intangible assets rose to $397.3 million from $196.1 million, and the company holds $605.6 million of cash against $1.37 billion of convertible senior notes. The release names no acquired company. Who it hits: digital health targets weighing a sale to a cash-pay consumer platform, and investors reading the margin decline against the cost of buying growth. So what: the company is paying for expansion with a mix of cash, non-cash consideration and promises to pay later, and $478.6 million of the deferred payable falls due within a year. Confidence: High on the balance sheet figures; we did not identify which deals they relate to.

A note on today’s scan: Tuesday morning was thin on new primary-source finance items. We found no new health system rating actions, bankruptcies or earnings dated November 9 or 10 beyond Hims & Hers. Surgery Partners’ amended agreement, covered yesterday, showed no new terms and no meeting date in our search. Redeemer Health’s bid procedures deadline of about November 15 has no new public filing yet. The Definitive Healthcare and Option Care Health proposals showed no new terms.

THE DEAL SHEET

One transaction spotted, and it is outside the U.S.; Low confidence, because we read trade press only and no company release. No new U.S. acquisitions, take-privates or antitrust actions surfaced in the last 24 hours.