Key Takeaways
- Shares of Hims & Hers (HIMS) declined approximately 6.4% during Tuesday’s premarket session following disappointing quarterly results and outlook
- Fourth-quarter revenue totaled $617.8M, falling short of Wall Street’s ~$619M consensus, while EPS of $0.08 exceeded projections
- First-quarter 2026 revenue forecast of $600M–$625M significantly trails analyst consensus of ~$653M
- FDA has escalated matters by referring the telehealth company to the Justice Department regarding alleged violations of federal drug regulations
- Year-to-date, HIMS shares have plummeted over 52% amid ongoing litigation from Novo Nordisk and intensifying regulatory challenges
The telehealth company Hims & Hers Health delivered a mixed bag of fourth-quarter results Monday evening, triggering a negative market reaction.
$HIMS (Hims & Hers Health) #earnings are out: pic.twitter.com/MnluzGJYXz
— The Earnings Correspondent (@earnings_guy) February 23, 2026
While earnings per share of $0.08 surpassed Wall Street’s projections of approximately $0.04–$0.05, the company’s quarterly revenue of $617.8 million came in slightly below analyst expectations of $618.7–$619.2 million.
In early Tuesday premarket activity, shares tumbled roughly 6.4%, trading near $14.48.
Hims & Hers Health, Inc., HIMS
The modest Q4 shortfall wasn’t the primary concern weighing on investor sentiment — it was the forward-looking guidance. Management projects first-quarter 2026 revenue in the range of $600 million to $625 million, well below the Street’s $653 million estimate. That’s a substantial variance that caught investors’ attention.
The company’s Q1 adjusted EBITDA guidance of $35 million to $55 million drew criticism from Citi Research analyst Daniel Grosslight, who characterized the forecast as “particularly weak” and noted it implies a dramatic acceleration later in the year dependent on upcoming product introductions.
Looking at the full-year picture, management forecasts revenue between $2.7 billion and $2.9 billion, generally aligned with analyst consensus of $2.74–$2.75 billion, alongside adjusted EBITDA guidance of $300 million to $375 million.
Analysts at Truist Securities observed that the guidance suggests considerable sequential growth throughout 2026, commenting that extended-hours trading activity likely mirrored investors’ “limited visibility beyond Q1.”
The annual projections exclude any potential contribution from the planned acquisition of Eucalyptus, an Australian telehealth operator announced recently and anticipated to finalize by mid-2026.
The subscriber base expanded 13% year-over-year to reach 2.5 million by year-end. CEO Andrew Dudum spotlighted the debut of Labs, a diagnostic and health tracking platform, positioning it as a strategic move toward establishing the company as a “global leader in consumer health.”
Legal and Regulatory Headwinds Intensify
Financial performance wasn’t the sole factor pressuring the shares. HIMS has faced escalating legal and regulatory challenges throughout 2026.
Earlier in the month, Novo Nordisk initiated legal proceedings against Hims, claiming patent violations related to compounded formulations of Wegovy. While the company publicly contested the claims, it announced plans to discontinue sales of a $49 pill containing semaglutide, the active compound in Novo’s blockbuster weight-loss medication.
The company continues offering compounded GLP-1 injectables through its online platform, typically priced substantially below brand-name alternatives from Novo and Eli Lilly.
Subsequently, the FDA released a statement committing to “take action against non-FDA-approved GLP-1 drugs,” specifically identifying compounding operations like Hims. FDA general counsel Mike Stuart disclosed that the agency was forwarding Hims to the Justice Department concerning possible violations of the Food, Drug, and Cosmetic Act.
Short Positioning and Market Performance
According to Reuters, short interest in HIMS reached its highest level in at least twelve months during January.
Year-to-date in 2026, the stock has declined more than 52%, and over the trailing twelve months, shares are down over 69%.
Grosslight anticipates that investors will concentrate on management’s commentary regarding the GLP-1 segment, which he estimates represents approximately one-third of overall revenue.
The company’s first-quarter 2026 outlook and its approach to compounded GLP-1 products remain the two primary areas of investor focus entering the upcoming quarter.
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