TLDR
- Hims & Hers (HIMS) shares declined approximately 6.4% during premarket hours Tuesday following disappointing earnings and forward guidance
- Fourth-quarter revenue reached $617.8M, falling short of Wall Street’s ~$619M consensus, despite beating EPS projections at $0.08
- First-quarter 2026 revenue outlook of $600M–$625M significantly trails analyst forecasts of ~$653M
- FDA escalated enforcement action by referring the company to the Justice Department for alleged violations
- Shares have plummeted over 52% year-to-date in 2026 amid legal battles with Novo Nordisk and heightened regulatory oversight
The telehealth platform Hims & Hers Health delivered a lackluster fourth-quarter report Monday evening, triggering negative investor sentiment.
$HIMS (Hims & Hers Health) #earnings are out: pic.twitter.com/MnluzGJYXz
— The Earnings Correspondent (@earnings_guy) February 23, 2026
While earnings per share of $0.08 surpassed Wall Street’s consensus range of $0.04–$0.05, the revenue picture told a different story. The company posted $617.8 million in quarterly revenue, narrowly missing analyst projections of $618.7–$619.2 million.
Shares tumbled approximately 6.4% in early Tuesday premarket activity, reaching around $14.48.
Hims & Hers Health, Inc., HIMS
The modest Q4 shortfall wasn’t the primary concern for investors — the forward-looking projections were. Management forecasts first-quarter 2026 revenue in the range of $600 million to $625 million, materially below the Street’s expectation of approximately $653 million.
The company’s adjusted EBITDA projection for Q1 of just $35 million to $55 million drew criticism from Citi Research analyst Daniel Grosslight, who characterized it as “particularly weak” and noted it implies an aggressive acceleration throughout the remainder of the year dependent on new product rollouts.
Looking at the full fiscal year, the company anticipates revenue between $2.7 billion and $2.9 billion, largely aligned with consensus estimates of $2.74–$2.75 billion, with adjusted EBITDA projected at $300 million to $375 million.
Analysts at Truist Securities observed that the guidance suggests substantial sequential growth throughout 2026, noting that extended-hours trading activity likely reflected “limited visibility beyond Q1.”
These annual projections exclude any potential impact from the company’s planned acquisition of Eucalyptus, an Australian telehealth operator announced recently and anticipated to finalize by mid-2026.
The subscriber base expanded 13% year-over-year to reach 2.5 million by year-end. Chief Executive Andrew Dudum emphasized the rollout of Labs, a diagnostic and health monitoring service, positioning it as a strategic initiative toward becoming a “global leader in consumer health.”
Regulatory and Legal Pressure Mounting
Financial results weren’t the sole factor weighing on investor sentiment. HIMS has faced intensifying legal and regulatory challenges throughout 2026.
Earlier in the month, pharmaceutical giant Novo Nordisk initiated legal action against Hims, claiming patent infringement related to the company’s compounded formulations similar to Wegovy. While Hims disputed the allegations, it announced plans to discontinue sales of a $49 tablet containing semaglutide, the active compound in Novo’s weight-management medication.
The company continues offering compounded GLP-1 injections through its platform, typically priced substantially below branded alternatives from Novo and Eli Lilly.
Subsequently, the FDA released a public statement pledging to “take action against non-FDA-approved GLP-1 drugs,” specifically targeting compounding operations like those at Hims. FDA general counsel Mike Stuart disclosed that the regulatory agency had referred Hims to the Justice Department regarding potential violations of the Food, Drug, and Cosmetic Act.
Short Interest and Stock Performance
Data from Reuters indicates that short interest in HIMS reached its peak level in at least twelve months during January.
Year-to-date in 2026, the stock has declined more than 52%, with losses exceeding 69% over the trailing twelve-month period.
Grosslight anticipates market participants will closely monitor management commentary regarding the GLP-1 segment, which he estimates represents approximately one-third of consolidated revenue.
The company’s first-quarter 2026 outlook and its approach to compounded GLP-1 products remain the primary areas of investor focus entering the upcoming quarter.
