By Mackenzie Tatananni
Hims & Hers Health stock fell after the telehealth company posted mixed quarterly results and issued a weak outlook for the current quarter.
After the bell Monday, Hims posted earnings of 8 cents a share, double analysts' calls for 4 cents. However, revenue was shy of forecasts at $617.8 million, missing the $619.2 million Wall Street had anticipated.
The company's shares were down 6.4% to $14.48 in premarket trading Tuesday.
First-quarter guidance also underwhelmed. Hims sees revenue in the range of $600 million to $625 million for the current quarter. Analysts tracked by FactSet were looking for $653.1 million.
For the full year, Hims forecast $2.7 billion to $2.9 billion in revenue. Wall Street was expecting $2.74 billion.
Both outlooks exclude potential contributions from the proposed acquisition of Australian telehealth provider Eucalyptus, which was announced last week. The transaction is expected to close in the middle of 2026, Hims said.
The reaction was somewhat subdued, which might have something to do with the fact that results were "less bad than expected," according to Citi Research analyst Daniel Grosslight.
But some weak points were glaring. Hims guided for $35 million to $55 million in adjusted earnings before interest, taxes, depreciation, and amortization for the first quarter, a figure that was "particularly weak" and suggests "a steep ramp throughout the year," likely due to new product launches, according to Grosslight.
Heading into the report, Hims had been in the spotlight for less than favorable reasons. Shares have plunged 52% in 2026 amid ongoing legal trouble with Novo Nordisk and the Trump administration. The benchmark S&P 500 fell 0.1% over the same period.
The Danish drugmaker sued Hims earlier this month, accusing the company of patent infringement for selling compounded versions of its weight-loss drugs. Although Hims hit back at the allegations in a statement, the company said it would stop selling a $49 pill containing semaglutide, the active ingredient in Novo's Wegovy.
But the company continues to sell compounded GLP-1 injections through its website, usually at an attractive discount to brand-name drugs manufactured by Novo and its major rival, Eli Lilly.
Hims operates and works with compounding pharmacies, which create tailored medications on a patient-by-patient basis. The company takes advantage of a legal framework that allows it to circumvent Food and Drug Administration approval for its products.
Hims ended 2025 with more than 2.5 million subscribers. Its business centers on a direct-to-consumer subscription model through which the company offers telehealth consultations and specialized prescriptions.
CEO Andrew Dudum touted a handful of recent initiatives including the launch of Labs, a diagnostic and health monitoring platform. "We believe we're on our way to becoming the global leader in consumer health," Dudum said in a statement.
But the company must clear some hurdles before then, including a challenge from regulators. Mike Stuart, Food and Drug Administration general counsel, said earlier this month that the FDA was referring Hims to the Justice Department over potential violations of the Food, Drug, and Cosmetic Act.
Just days later, the FDA released a press release vowing to "take action against non-FDA-approved GLP-1 drugs." The notice implied Hims was one of several compounding pharmacies mass-marketing alternatives to FDA-approved medications.
Grosslight expects investors to home in on messaging around the telehealth company's GLP-1 franchise, which he puts at around one-third of total revenue. "We are likely to see increased competitive intensity and regulatory scrutiny on HIMS's GLP-1 personalization strategy in the near term," he wrote.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
February 24, 2026 05:29 ET (10:29 GMT)
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