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Key Stats for HIMS Stock
- Price Change for HIMS stock: -13.5%
- Current Share Price: $55
- 52-Week High: $73
- HIMS Stock Price Target: $48
What Happened?
Hims & Hers Health (HIMS) stock tumbled over 13% after the telehealth company reported second-quarter earnings that missed Wall Street’s revenue expectations despite strong year-over-year growth.
It posted adjusted earnings per share of $0.29, beating analyst estimates of $0.23, but revenue of $544.8 million fell short of the $552 million consensus estimate.
Despite the revenue miss, Hims & Hers demonstrated impressive underlying growth momentum with revenue surging 73% year-over-year from $315.6 million in the year-ago period.
The company’s subscriber base expanded to over 2.4 million, representing a 31% year-over-year increase, while adjusted EBITDA of $82 million exceeded expectations of $72 million and nearly doubled from $39.3 million in the prior year.
However, the market focused on forward-looking concerns as management issued third-quarter guidance that disappointed HIMS stock investors.
For Q3, HIMS projected revenue between $570-590 million versus analyst expectations of $583 million, while adjusted EBITDA guidance of $60-70 million came in well below the $77.1 million consensus.
See analysts’ growth forecasts and price targets for HIMS (It’s free!) >>>
What the Market Is Telling Us About HIMS Stock
The adverse reaction to HIMS stock reflects growing investor concerns about the sustainability of Hims & Hers’ growth trajectory amid ongoing regulatory challenges and competitive pressures in the telehealth space.
It continues to face scrutiny over compounded GLP-1 weight loss offerings following the high-profile collapse of its partnership with Novo Nordisk in June, when the pharmaceutical giant accused Hims of “mass sales of compounded drugs” under the “false guise” of personalization.
The revenue miss and cautious guidance suggest HIMS stock may be experiencing headwinds in its core business segments.
Management noted challenges from the transition away from on-demand sexual health products toward higher-value daily offerings, which is creating near-term revenue pressure despite improving long-term customer lifetime value.
Additionally, HIMS disclosed that it no longer uses 503B outsourcing facilities for compounded GLP-1 treatments, resulting in shorter shipment cadences and lower revenue recognition per order.
Despite these near-term challenges, the market appears to be overlooking several positive developments highlighted in the earnings call.
The company’s international expansion through the ZAVA acquisition positions it to enter the Canadian market in 2026, with the availability of generic semaglutide.
Additionally, new product launches, including hormonal health treatments and at-home lab testing capabilities, represent growth opportunities that could drive HIMS toward its ambitious 2030 targets of $6.5 billion in revenue and $1.3 billion in adjusted EBITDA.
The ongoing decline may also reflect profit-taking after an extraordinary 150% year-to-date gain that made HIMS one of the top-performing healthcare stocks in 2025.
While HIMS stock maintains strong fundamentals with over 85% customer retention and expanding gross margins, investors appear to be recalibrating expectations amid a more complex operating environment.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
