TLDR
- Shares of Hims & Hers (HIMS) declined approximately 6.4% during premarket hours Tuesday following underwhelming quarterly results and disappointing forward guidance
- Fourth-quarter revenue totaled $617.8M, falling short of the roughly $619M consensus forecast, while EPS of $0.08 surpassed projections
- First-quarter 2026 revenue outlook of $600M–$625M significantly underperformed analyst projections of approximately $653M
- The Food and Drug Administration has escalated enforcement actions, referring the telehealth company to the Department of Justice regarding possible Food, Drug, and Cosmetic Act violations
- Year-to-date 2026, HIMS shares have plummeted over 52%, facing headwinds from Novo Nordisk litigation and intensifying regulatory oversight
The telehealth platform Hims & Hers Health delivered a mixed bag of fourth-quarter results Monday evening, leaving investors unimpressed and sending shares lower.
For the fourth quarter, earnings per share reached $0.08, exceeding analyst projections that ranged between $0.04 and $0.05. On the top line, however, revenue registered at $617.8 million, marginally below Wall Street’s consensus estimates of $618.7–$619.2 million.
Shares tumbled approximately 6.4% in early premarket activity Tuesday, trading around $14.48.
Hims & Hers Health, Inc., HIMS
While the modest Q4 revenue shortfall raised eyebrows, the real concern centered on forward-looking projections. Management forecasts Q1 2026 revenue ranging from $600 million to $625 million. Wall Street had anticipated closer to $653 million—a substantial disconnect that caught investor attention.
Adjusted EBITDA expectations for the first quarter sit at just $35 million to $55 million, figures Citi Research analyst Daniel Grosslight characterized as “particularly weak,” implying an aggressive acceleration through subsequent quarters dependent on upcoming product rollouts.
Looking at the full fiscal year, management projects revenue between $2.7 billion and $2.9 billion, largely consistent with consensus estimates of $2.74–$2.75 billion, alongside adjusted EBITDA guidance of $300 million to $375 million.
Truist Securities analysts observed that the guidance suggests considerable sequential growth throughout 2026, noting that post-market trading activity likely reflected “limited visibility beyond Q1.”
These annual projections exclude any potential revenue from the recently announced acquisition of Eucalyptus, an Australian telehealth operator, which is anticipated to finalize around mid-2026.
The company’s subscriber base expanded 13% year-over-year, reaching 2.5 million by year-end. CEO Andrew Dudum spotlighted the rollout of Labs, a diagnostic and health monitoring offering, positioning it as integral to the company’s ambition of becoming a “global leader in consumer health.”
Regulatory and Legal Pressure Mounting
Financial performance wasn’t the sole factor pressuring the stock. HIMS has confronted mounting legal challenges and regulatory headwinds throughout 2026.
Earlier in the month, Novo Nordisk filed suit against the company, claiming patent infringement related to Hims’ compounded alternatives to Wegovy. While the telehealth firm publicly defended its position, it announced it would discontinue a $49 pill formulation containing semaglutide, the active compound in Novo’s weight-loss medication.
The company continues offering compounded GLP-1 injection products through its platform, frequently priced substantially below brand-name alternatives from Novo and Eli Lilly.
Subsequently, the FDA released a statement pledging to “take action against non-FDA-approved GLP-1 drugs,” specifically identifying compounding operations like Hims. FDA general counsel Mike Stuart confirmed the agency has referred Hims to the Justice Department concerning potential violations of federal drug laws.
Short Interest and Stock Performance
Short interest in HIMS shares reached its highest point in at least twelve months during January, per Reuters reporting.
The stock has now declined more than 52% year-to-date in 2026 and over 69% across the trailing twelve-month period.
Grosslight anticipates investors will closely monitor management’s commentary regarding the GLP-1 product line, which he estimates represents roughly one-third of aggregate revenue.
The company’s first-quarter 2026 outlook and its approach to compounded GLP-1 offerings remain the primary areas of investor focus entering the upcoming quarter.
