Hims & Hers shares plunge 15% on weak outlook
By Jon CuthbertKey points
- Hims & Hers Health (NYSE:HIMS) shares fell as much as 15% on Tuesday after the company issued weaker-than-expected fourth-quarter revenue guidance.
- Third-quarter revenue increased 49% to US$890.4 million, but gross margin dropped to 57% from 74% a year earlier.
- The company continues to face scrutiny over compounded GLP-1 weight-loss drugs and an FTC lawsuit concerning consumer data privacy and subscription cancellations.
Hims & Hers Health (NYSE:HIMS) shares fell as much as 15% on Tuesday after the telehealth company issued fourth-quarter revenue guidance below analyst expectations, despite reporting 49% third-quarter revenue growth to US$890.4 million.
Third-quarter revenue was broadly in line with analyst estimates, but gross margin declined to 57% from 74% in the prior-year quarter, while subscriber growth also fell short of expectations.
The weaker outlook raised concerns about the company's profitability, particularly as rising costs and lower gross margins affected its financial performance.
The company forecast fourth-quarter revenue of US$875 million–US$895 million, below the US$955.1 million analysts expected, creating a revenue shortfall of approximately US$60.1 million–US$80.1 million against the consensus estimate.
Following the announcement, Hims & Hers shares fell as much as 15% during Tuesday's trading session.
The company has also faced regulatory challenges involving its compounded GLP-1 weight-loss medications, following increased scrutiny of its efforts to offer lower-cost alternatives to branded treatments.
In July 2026, the Federal Trade Commission filed a lawsuit alleging that Hims & Hers shared private health information with advertisers Meta and Snap and made subscription cancellations difficult, claims the company has rejected while pledging to defend itself.
