Hims & Hers Health (NYSE:HIMS) Shares Gap Down on Disappointing Earnings

Hims & Hers Health, Inc. (NYSE:HIMS)’s share price gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $31.77, but opened at $29.71. Hims & Hers Health shares last traded at $30.9070, with a volume of 6,076,303 shares.

The company reported ($0.37) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.32). Hims & Hers Health had a negative net margin of 5.51% and a negative return on equity of 5.89%. The company had revenue of $753.21 million for the quarter, compared to analysts’ expectations of $698.90 million. During the same period last year, the company posted $0.17 EPS. The business’s revenue for the quarter was up 38.2% compared to the same quarter last year.

Trending Headlines about Hims & Hers Health

Here are the key news stories impacting Hims & Hers Health this week:

• Positive Sentiment: Second-quarter revenue increased 38.2% year over year to $753.2 million, exceeding analysts’ expectations of approximately $699 million. Subscriber growth, AI-driven engagement, specialty care and international expansion supported the performance. Management also raised its 2026 revenue outlook. Hims & Hers Q2 revenue beat offset by wider-than-expected loss
• Positive Sentiment: Needham raised its price target from $35 to $42 and maintained a Buy rating, indicating that some analysts believe current valuation reflects much of the near-term weakness and that investments could support longer-term growth.
• Neutral Sentiment: Hims plans to offer certain legally available compounded peptides in 2026. However, analysts cited by Reuters expect the new offering to contribute little revenue this year, making it more of a longer-term opportunity than an immediate catalyst. As Hims prepares for peptides launch, Wall Street cautious on prospects this year
• Negative Sentiment: The company reported a $0.37-per-share quarterly loss, substantially worse than the expected $0.05 loss. Gross-margin compression and negative free cash flow—partly tied to the shift toward branded GLP-1 weight-loss drugs, restructuring and international expansion—overshadowed the revenue beat and guidance increase. Hims & Hers shares slide as costly weight-loss push squeezes margins
• Negative Sentiment: Multiple law firms announced investigations into potential securities-law violations, fiduciary-duty breaches, data-sharing practices, billing and subscription-cancellation policies. The FTC and consumer plaintiffs have also pursued legal action. These announcements increase uncertainty around potential costs, liabilities and reputational damage, although they represent allegations rather than findings of wrongdoing. Berger Montague investigation
• Negative Sentiment: Wall Street remains cautious: Morgan Stanley highlighted pressure from gross margin and free cash flow, while Citi lowered its target to $33 and kept a Neutral rating. The stock’s decline reflects concern that higher revenue is not yet translating into sustainable earnings.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. Jefferies Financial Group set a $24.50 price target on shares of Hims & Hers Health in a report on Tuesday, May 12th. Citigroup lowered their price objective on shares of Hims & Hers Health from $35.00 to $33.00 and set a “neutral” rating for the company in a research note on Tuesday. UBS Group set a $23.00 target price on Hims & Hers Health in a research note on Friday, May 22nd. TD Cowen raised their target price on Hims & Hers Health from $25.00 to $30.00 and gave the stock a “hold” rating in a research note on Tuesday. Finally, Bank of America boosted their price target on Hims & Hers Health from $30.00 to $32.00 and gave the company a “neutral” rating in a report on Tuesday. Four analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $32.43.

Insider Buying and Selling at Hims & Hers Health

In other Hims & Hers Health news, insider Patrick Harrison Carroll sold 23,726 shares of Hims & Hers Health stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $35.00, for a total transaction of $830,410.00. Following the sale, the insider directly owned 181,861 shares of the company’s stock, valued at approximately $6,365,135. The trade was a 11.54% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Michael Chi sold 14,027 shares of the company’s stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $31.50, for a total value of $441,850.50. Following the transaction, the chief operating officer owned 432,124 shares in the company, valued at $13,611,906. This trade represents a 3.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 83,126 shares of company stock worth $2,711,339. 11.76% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Hims & Hers Health

Institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its holdings in shares of Hims & Hers Health by 7.2% during the 4th quarter. Vanguard Group Inc. now owns 20,925,666 shares of the company’s stock valued at $679,456,000 after buying an additional 1,407,651 shares in the last quarter. State Street Corp grew its position in shares of Hims & Hers Health by 1.8% in the 4th quarter. State Street Corp now owns 7,305,525 shares of the company’s stock worth $237,210,000 after buying an additional 132,311 shares during the period. Geode Capital Management LLC increased its stake in shares of Hims & Hers Health by 12.4% in the 4th quarter. Geode Capital Management LLC now owns 5,509,764 shares of the company’s stock worth $183,485,000 after acquiring an additional 608,950 shares in the last quarter. Bank of America Corp DE increased its stake in shares of Hims & Hers Health by 194.4% in the 1st quarter. Bank of America Corp DE now owns 4,357,672 shares of the company’s stock worth $90,465,000 after acquiring an additional 2,877,550 shares in the last quarter. Finally, Invesco Ltd. lifted its position in Hims & Hers Health by 62.7% during the 3rd quarter. Invesco Ltd. now owns 4,152,409 shares of the company’s stock valued at $235,525,000 after acquiring an additional 1,600,004 shares during the period. Institutional investors own 63.52% of the company’s stock.

Hims & Hers Health Stock Performance

The company has a debt-to-equity ratio of 2.18, a quick ratio of 1.56 and a current ratio of 1.69. The business’s 50-day moving average is $32.06 and its 200-day moving average is $26.08. The company has a market capitalization of $6.90 billion, a PE ratio of -47.35, a PEG ratio of 85.86 and a beta of 2.40.

About Hims & Hers Health

Hims & Hers Health, Inc is a telehealth platform providing direct-to-consumer personal care products and virtual medical services in the United States. Operating under the Hims & Hers brand, the company offers an integrated digital experience that connects users with licensed healthcare providers, enabling online consultations and prescriptions for a range of conditions. Its telemedicine infrastructure supports both prescription medications and over-the-counter products, with home delivery to patients’ doorsteps.

The company’s product portfolio addresses key areas of men’s and women’s health, including hair loss treatments, sexual wellness therapies, skincare regimens and mental health support.