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Key Takeaways
- Shares of HIMS declined approximately 6.4% during premarket trading Tuesday following fourth-quarter results and disappointing first-quarter projections
- Fourth-quarter revenue reached $617.8M, slightly below Wall Street targets; earnings per share of $0.08 exceeded forecasts
- First-quarter 2026 revenue outlook of $600M–$625M significantly trailed analyst expectations of approximately $653M
- The company faces Justice Department referral from FDA regarding possible GLP-1 regulatory violations
- Year-to-date 2026, HIMS has plummeted more than 52% amid legal challenges from Novo Nordisk and heightened regulatory oversight
The telehealth platform Hims & Hers Health released fourth-quarter financial results Monday evening, delivering mixed signals that sent investors heading for the exits Tuesday morning.
The company’s earnings per share of $0.08 surpassed Wall Street’s projections of $0.04–$0.05. However, revenue totaled $617.8 million, marginally below the anticipated range of $618.7–$619.2 million. In early Tuesday trading, shares declined roughly 6.4% to approximately $14.48.
Hims & Hers Health, Inc., HIMS
The company’s subscriber base expanded 13% compared to the prior year, reaching 2.5 million by the close of 2025. Chief Executive Andrew Dudum emphasized the rollout of Labs, a novel diagnostic and health tracking service.
First-Quarter Outlook Disappoints Investors
The more significant concern emerged from the company’s forward projections. Hims forecasted first-quarter 2026 revenue between $600 million and $625 million — substantially beneath the roughly $653 million Wall Street consensus.
Adjusted EBITDA projections for the first quarter stand at merely $35 million to $55 million. Citi Research’s Daniel Grosslight characterized this projection as “particularly weak,” noting an anticipated aggressive acceleration later in the year connected to upcoming product introductions.
For fiscal 2026, the company projects revenue ranging from $2.7 billion to $2.9 billion, roughly matching consensus estimates of $2.74–$2.75 billion. Adjusted EBITDA is anticipated between $300 million and $375 million.
Truist Securities observed that the guidance suggests substantial quarter-over-quarter growth throughout 2026, noting that restricted visibility past the first quarter probably triggered the negative market response.
These projections exclude any potential impact from the pending acquisition of Eucalyptus, an Australian telehealth competitor announced recently and anticipated to finalize around mid-2026.
Legal Challenges and Regulatory Headwinds Mount
Beyond weak guidance, the company confronts escalating legal and regulatory obstacles throughout 2026.
Novo Nordisk initiated patent infringement litigation against the company this month concerning compounded alternatives to Wegovy. While Hims announced it would discontinue sales of a $49 semaglutide tablet, it maintains its compounded GLP-1 injection offerings at prices substantially below brand-name medications from Novo and Eli Lilly.
The FDA subsequently issued a statement pledging enforcement action against non-approved GLP-1 products, with FDA general counsel Mike Stuart confirming the agency forwarded Hims to the Justice Department regarding potential Food, Drug, and Cosmetic Act violations.
Short positions in HIMS reached their highest concentration in at least twelve months during January, according to Reuters data.
Shares have now declined more than 52% during 2026 and over 69% across the trailing twelve-month period.
Citi’s Grosslight projects that GLP-1 products represent approximately one-third of overall revenue and anticipates this business segment will encounter sustained scrutiny moving forward.
