Hims & Hers Health reports third-quarter results after the US market closes on Monday, with Wall Street expecting revenue to jump by almost half as weight-loss treatments keep driving growth, and watching closely for any sign that the boom is coming at the cost of profit margins.

Analysts expect the telehealth company to post earnings of $0.07 per share, up 16.7 per cent on a year earlier, on revenue of $893.4 million, up 49.2 per cent, according to the Zacks consensus estimate. The company itself guided to revenue of $880 million to $900 million for the quarter, with adjusted earnings before interest, tax, depreciation and amortisation of $75 million to $95 million.

The earnings call is scheduled for 5:00 p.m. Eastern Time. It will be the first quarter reported with a full three months of Eucalyptus, the Australian telehealth company Hims & Hers agreed to buy in February for up to $1.15 billion. Hims launched in Australia on 1 September, initially offering men's health treatments and weight-loss medication. Founded in 2017 and listed on the New York Stock Exchange, the company had more than 2.4 million subscribers at the end of June.

Weight loss drives growth, squeezes margins

Demand for weight-loss treatments is expected to have remained the main engine of growth, supported by branded offerings and by subscribers built up over recent months. Investors will also watch subscriber additions, retention and the contribution from newer specialties such as testosterone replacement therapy.

The trade-off is margin. Gross margin has fallen from 76 per cent to 64 per cent over the past year as branded GLP-1 weight-loss drugs, which carry lower margins than the company's older products, have grown to a larger share of sales.

That tension frames the fourth quarter as well. Revenue for the first half of the year was $1,361.3 million, so the midpoint of the company's full-year revenue guidance of about $3.2 billion implies fourth-quarter revenue of roughly $944 million, slightly below the $954.6 million analysts currently expect.

Shares jump on Lilly deal

The shares jumped about 6 per cent to roughly $25 on Friday after Hims & Hers announced a deal to give subscribers access to drugmaker Eli Lilly's Zepbound weight-loss injection. The rally erased part of a drop of roughly 10 per cent the previous day.

The second quarter showed both sides of the story. Revenue reached $753.21 million, ahead of the $698.90 million analysts had expected, but the company reported a loss of $0.37 per share, missing the $0.05 loss analysts had forecast, and a net loss of $86.3 million. Hims & Hers has beaten earnings estimates in only one of the past four quarters.

Analysts on Wall Street hold a neutral view overall, with a consensus Hold rating and an average price target of $32.82, implying about 29 per cent upside from current levels, according to TipRanks. Zacks gives the stock a Rank #3, or Hold, and its model does not conclusively predict an earnings beat this time, with an earnings surprise predictor of 0.00 per cent.

Legal overhang

The results also come with a legal overhang. The company faces multiple securities class action lawsuits, with an investor filing deadline that passed on 2 November. Novo Nordisk ended a collaboration to offer branded Wegovy through the Hims & Hers platform in June 2025, sending the shares down about 35 per cent, and regulators have since scrutinised the company's advertising: the Federal Trade Commission has been investigating its marketing and subscription cancellation practices, and the Food and Drug Administration sent it a warning letter in September 2025 over claims about compounded weight-loss products.

For now, though, the market's focus is narrower: whether weight-loss demand can keep revenue growing near 50 per cent while the company shows it can protect its margins.