Hims & Hers: Why I'm Not Buying Back Yet (Rating Downgrade)

Hims & Hers grew Q3 revenue 49% to $890.4 million, but adjusted EBITDA increased just $4 million to $82.4 million. Gross margin contracted from 73.8% to 57.2%, while subscribers declined 100,000 sequentially despite rising revenue per subscriber. International revenue surged 321% to $233.3 million, although acquired Eucalyptus contributed approximately $135 million of quarterly sales.