Hims & Hers Health Inc. (HIMS) shares tumbled 5.25% in after-hours trading on Monday, following the release of its second-quarter financial results. The steep decline came as the telehealth platform reported a much wider-than-expected quarterly loss, overshadowing a solid revenue beat and an increased full-year revenue forecast.

For the quarter ended June 30, the company posted a loss of $0.37 per share, dramatically missing the consensus analyst estimate of a loss of just $0.03 to $0.05 per share. This compares to earnings of $0.17 per share in the same period last year. The net loss for the quarter was $86.3 million, swinging from a profit of $43.5 million a year earlier. While revenue surged 38% to $753.2 million, surpassing expectations of around $699.9 million, the cost of revenue more than doubled year-over-year, causing the gross margin to contract to 64% from 76%. The company also cited restructuring charges related to a strategic shift toward branded GLP-1 weight-loss drugs and a more limited compounded offering.

Despite the earnings miss, Hims & Hers raised its full-year 2026 revenue guidance to a range of $3.1 billion to $3.3 billion, up from $2.8 billion to $3 billion, and provided an upbeat third-quarter revenue outlook. Management expressed confidence in accelerating domestic business in the second half of the year and reiterated its long-term target of at least $6.5 billion in revenue by 2030. However, investor sentiment was weighed down by the significant bottom-line miss and ongoing margin pressure as the company continues to invest in growth initiatives.