Key Takeaways
- HIMS shares declined approximately 6.4% during premarket trading Tuesday following lackluster forward guidance despite Q4 beat
- Fourth-quarter revenue of $617.8M came in slightly below projections; earnings per share of $0.08 surpassed forecasts
- First-quarter 2026 revenue outlook of $600M–$625M significantly trailed analyst expectations of roughly $653M
- FDA escalated regulatory action by referring the telehealth company to the Justice Department regarding GLP-1 compliance issues
- Shares have plummeted more than 52% year-to-date amid legal battles with Novo Nordisk and intensifying regulatory pressure
Hims & Hers Health delivered its fourth-quarter financial results Monday evening, and although the actual performance showed some bright spots, the company’s forward-looking projections triggered a sharp selloff.
The telehealth platform reported earnings per share of $0.08, comfortably exceeding Wall Street’s consensus range of $0.04–$0.05. Top-line results reached $617.8 million, narrowly missing the anticipated $618.7–$619.2 million. Shares retreated approximately 6.4% in early premarket activity Tuesday, trading near $14.48.
Hims & Hers Health, Inc., HIMS
The company’s subscriber base expanded 13% compared to the prior year, reaching 2.5 million by the end of December. CEO Andrew Dudum emphasized the rollout of Labs, a fresh diagnostic and health tracking platform designed to complement existing offerings.
Disappointing First-Quarter Projections
The outlook for the current quarter became the primary concern for investors. Hims projected first-quarter 2026 revenue between $600 million and $625 million — materially below the approximately $653 million Wall Street had anticipated.
The company’s adjusted EBITDA forecast for Q1 stands at merely $35 million to $55 million. Citi Research’s Daniel Grosslight characterized this guidance as “particularly weak,” noting expectations for a significant acceleration in later quarters driven by upcoming product introductions.
For the complete fiscal year, management provided revenue guidance of $2.7 billion to $2.9 billion, which aligns reasonably with analyst consensus estimates of $2.74–$2.75 billion. Full-year adjusted EBITDA is anticipated in the $300 million to $375 million range.
Truist Securities observed that the projections suggest substantial sequential growth momentum throughout 2026, while noting that constrained visibility beyond the first quarter likely contributed to negative market reaction.
These forecasts exclude any potential revenue contribution from the recently announced acquisition of Eucalyptus, an Australian telehealth competitor, which is scheduled to finalize around mid-2026.
Legal Challenges and Regulatory Scrutiny Intensify
Weak guidance represents just one obstacle facing the digital health company. Hims has confronted escalating legal and regulatory challenges throughout the current year.
Novo Nordisk initiated patent infringement litigation against the platform earlier this month concerning compounded alternatives to Wegovy. While Hims announced it would discontinue sales of a $49 semaglutide tablet, the company maintains its offering of compounded GLP-1 injection products at prices below brand-name treatments from Novo and Eli Lilly.
The FDA subsequently issued a statement committing to enforcement action against unauthorized GLP-1 products. FDA general counsel Mike Stuart disclosed that the agency had formally referred Hims to the Justice Department regarding possible violations of federal Food, Drug, and Cosmetic Act provisions.
Share Price Performance
Short selling activity in HIMS reached its peak level in more than twelve months during January, according to Reuters data.
Shares have now declined over 52% since the beginning of 2026 and have fallen more than 69% over the trailing twelve-month period.
Citi’s Grosslight projects that the GLP-1 weight loss segment represents approximately one-third of overall company revenue and anticipates ongoing regulatory examination of this business line throughout the near term.
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