Hims & Hers Health (HIMS) Stock: Weight Loss Drug Drama Continues as Revenue Disappoints

TLDR

Table of Contents

Hims & Hers Health (HIMS) stock dropped 12% in after-hours trading after missing revenue expectations despite 73% year-over-year growth
Company reported Q2 revenue of $544.8 million versus analyst expectations of $551.7-$552 million
Earnings per share beat expectations at 17 cents versus 15 cents expected
Q3 revenue guidance of $570-$590 million falls short of analyst expectations of $583 million
Company continues facing controversy over compounded GLP-1 weight loss drug sales after FDA shortage resolution

Hims & Hers Health shares tumbled in extended trading Monday as the telehealth platform failed to meet Wall Street’s revenue expectations. The stock fell 12% to $55.68 in after-hours trading despite posting strong year-over-year growth numbers.

The company reported second-quarter revenue of $544.8 million, missing analyst expectations of $551.7 million to $552 million. This represents a 73% increase from the $315.6 million reported in the same period last year.

Earnings provided a bright spot for investors. The company posted adjusted earnings of 17 cents per share, beating the consensus estimate of 15 cents. Net income reached $42.5 million compared to $13.3 million in the prior year period.

Hims Earnings Breakdown ( $HIMS )
RESULTS
🔴 SALES: $545M (est $552M)
🟢 EBITDA: $82M (est $72M)
GUIDE
🔴 Q3 SALES: $580M (est $584M)
🔴 Q3 EBITDA: $65M (est $76M)
🟡 FY SALES: $2.35B (est $2.35B)
🔴 FY EBITDA: $305M (est $319M) pic.twitter.com/7VakS7vxbR
— Sunday Markets News (@SMM_Newsletter) August 4, 2025

Co-founder and CEO Andrew Dudum highlighted the company’s expansion plans during the earnings release. He said the company believes it is entering a period of growth where it will enter new specialties. This expansion aims to bring millions of people needing care into the market.

The CEO emphasized a shift in the company’s approach. Hims & Hers wants to move from single-issue care to helping people manage their overall health proactively.

Third Quarter Outlook Falls Short

Looking ahead, Hims & Hers provided third-quarter guidance that disappointed investors. The company expects revenue between $570 million and $590 million. Analysts had been expecting $583 million for the quarter.

The company maintained its full-year 2025 guidance. Revenue is expected to reach $2.3 billion to $2.4 billion. Adjusted EBITDA guidance remains at $295 million to $335 million.

For the third quarter, adjusted EBITDA is projected between $60 million and $70 million. This falls below analyst expectations of $77.1 million according to StreetAccount.

GLP-1 Controversy Continues

The company continues to face scrutiny over its compounded GLP-1 sales. These are cheaper versions of popular weight loss drugs like Wegovy and Ozempic. The FDA announced in February that supply shortages for these medications had been resolved.

Some telehealth companies, including Hims & Hers, have continued offering compounded versions. The practice remains legal for personalized doses in specific cases. This includes situations where patients are allergic to ingredients in branded products.

The controversy intensified in June when a partnership with Novo Nordisk collapsed. The drugmaker accused Hims & Hers of failing to follow laws prohibiting mass sales of compounded drugs. Novo claimed the company used personalization as a “false guise.”

Following that announcement, Hims & Hers shares tumbled more than 30%. The stock has since recovered but remains under pressure from regulatory concerns.

Despite the recent decline, the stock has performed well this year. Shares are up 162% year-to-date according to Dow Jones Market Data. Barron’s had recommended shorting the stock in March, but it has gained 55% since that recommendation.

The company operates across multiple health categories beyond weight loss. Hims & Hers offers solutions for hair loss, mental health, and sexual health through its telehealth platform.

Adjusted EBITDA for the second quarter reached $82 million, up from $39.3 million last year. This metric exceeded analyst expectations of $73 million, providing some positive news for investors.

The company is scheduled to host its quarterly earnings call with investors at 5 p.m. ET to discuss the results in more detail.

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