Shares of the telehealth provider Hims & Hers Health, Inc. faced intense selling pressure this week following the release of its quarterly earnings report. The stock plummeted more than 8% in reaction, extending a severe and prolonged downtrend that has seen the company lose a staggering 70% of its value over the past twelve months.
Earnings Miss and a Cautious Forecast
For the fourth quarter of 2025, Hims & Hers reported revenue of $617.8 million. While this figure represents a solid 28% year-over-year increase, it narrowly missed the market consensus estimate of $618.7 million. The company posted earnings per share of $0.08. Full-year 2025 revenue totaled $2.3 billion, marking a substantial 59% jump from the prior year.
The primary catalyst for the market’s negative reaction, however, was the company’s forward-looking guidance. Management projected first-quarter 2026 revenue in a range of $600 million to $625 million, falling significantly short of the $654 million analysts had anticipated. For the entire 2026 fiscal year, the revenue forecast stands at approximately $2.8 billion. This disappointing outlook compounds a devastating period for shareholders, with the equity having shed 60% of its value in just the last three months alone.
Should investors sell immediately? Or is it worth buying Hims & Hers?
Mounting Scrutiny Over Weight-Loss Drug Operations
A significant portion of the company’s recent growth has been attributed to its sale of compounded GLP-1 medications for weight loss. Although Hims & Hers emphasizes that the majority of its total revenue continues to come from other service areas, this specific segment is now under a regulatory microscope. The U.S. Food and Drug Administration (FDA) is currently considering a ban on the distribution of these compounded GLP-1 drugs.
Political pressure is also intensifying. Initiatives calling for greater transparency in drug pricing are emerging from circles associated with former government officials. These efforts include direct criticism of companies like Hims & Hers that market unregulated, compounded generic alternatives.
A Clouded Future for the Telehealth Firm
The emerging regulatory threat poses a potential structural challenge, even if GLP-1-related sales do not constitute the firm’s primary revenue stream. The combination of missed financial targets and the looming possibility of regulatory intervention is severely eroding investor confidence. The coming months will be critical for Hims & Hers as it attempts to navigate this regulatory uncertainty while working to stabilize growth across its other business segments.
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