Earnings
Hims & Hers Drops on Margin Squeeze and Lower Profit Outlook as GFL Environmental Falls After Rejecting Buyout Offers
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Two company-specific stories stood out in Tuesday's session as the broader market sagged after hot inflation data.
By Emmanuel Cruz ·
While the broader market weighed a hotter-than-expected inflation report on Tuesday, a handful of individual stocks moved on their own news. Two of the more notable stories involved a telehealth company whose growth came with much thinner margins and a waste-services company whose board turned down offers to take it private.
Hims & Hers Health reported third-quarter revenue of about $890.4 million, up 49% from $599.0 million a year earlier, according to its earnings release filed with the Securities and Exchange Commission [1]. Subscribers at the end of the period reached roughly 2.79 million, up 13% [1]. Profitability moved the other way. The company posted a net loss of about $33.0 million, compared with net income of $15.8 million a year earlier, and adjusted EBITDA was $82.4 million, a 9% margin versus 13% in the same quarter last year [1]. Gross margin fell to 57% from 74% [1].
The outlook disappointed investors. Hims guided to fourth-quarter revenue of $875 million to $895 million and adjusted EBITDA of $70 million to $90 million [1]. It tightened its full-year revenue range to $3.13 billion to $3.15 billion but lowered its full-year adjusted EBITDA range to $257 million to $277 million [1]. Yahoo Finance reported that the stock fell as much as 15% on Tuesday, pointing to the margin decline and the fourth-quarter forecast [2]. The result illustrates how fast revenue growth can still be overshadowed when costs rise faster than sales.
GFL Environmental, meanwhile, ended a strategic review by saying it will stay public. In a filing dated November 10, the company said a special committee of independent directors had reviewed unsolicited proposals to acquire it and take it private, and found they were not in the best interests of the company [3]. The committee said the proposed valuations were at a premium to the stock's trading price, but its chair, Dino Chiesa, said they were "not reflective of the full value of our standalone strategy" [3]. The board voted unanimously to remain a public company [3].
GFL also said certain parties remain interested in acquiring some or all of the stakes held by its financial sponsor shareholders, and that it will facilitate that process as required [3]. Chief Executive Patrick Dovigi said free cash flow per share could double over the next five years, and the company said it plans opportunistic share repurchases on a recurring basis [3]. TheStreet reported that the stock fell 9.24% in morning trading after the board rejected what it described as a $22 billion take-private offer [4]. The decline suggests some investors had priced in a deal.
Other movers in the same TheStreet roundup included AAON, up 26.28% after it beat third-quarter earnings expectations and raised its full-year outlook, and Sanmina, up 10.87% after fiscal fourth-quarter results that significantly beat expectations [4]. GE Vernova fell 5.42% after SoftBank disclosed a $3.7 billion charge tied to data center power equipment, according to the same report [4]. These moves came as the Nasdaq traded lower following the inflation data [2][4].
For investors, the common thread is how strictly the market is judging guidance and capital allocation at a time of higher yields. Companies that raise outlooks are being rewarded sharply, while those that cut profit targets or fail to deliver a transaction are being penalized. Next on the calendar, several AI-linked companies, including CoreWeave, D-Wave Quantum and Rigetti Computing, were scheduled to report after the close on Tuesday, according to Yahoo Finance [2].
Sources:
[1] Hims & Hers Health, Inc., "Form 8-K - FY2026 (third-quarter 2026 earnings release)", November 9, 2026. https://www.sec.gov/Archives/edgar/data/0001773751/000177375126000242/hims-20260930x8xkearningsr.htm
[2] Yahoo Finance, "Stock market today: Dow, S&P 500, Nasdaq slip after CPI data raises Fed rate-hike bets", November 10, 2026. https://finance.yahoo.com/markets/live/stock-market-today-tuesday-november-10-dow-sp-500-nasdaq-inflation-data-cpi-090627830.html
[3] GFL Environmental Inc., "Form 6-K - FY2026 (Exhibit 99.1, review of unsolicited proposals)", November 10, 2026. https://www.sec.gov/Archives/edgar/data/0001780232/000110465926124759/tm2629428d1_ex99-1.htm
[4] TheStreet, "Stock Market Today (Nov. 10, 2026): Nasdaq falls after key inflation report derails strong start to week", November 10, 2026. https://www.thestreet.com/stock-market-today/stock-market-today-dow-jones-sp-500-nasdaq-updates-nov-10-2026
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.