Shares of Hims & Hers Health Inc. (HIMS) tumbled 10.77% in after-hours trading on Monday following the release of its second quarter 2025 financial results. The telehealth company's stock decline came despite beating earnings estimates, as revenue fell short of expectations.

Hims & Hers reported Q2 revenue of $544.8 million, marking a substantial 73% increase year-over-year. However, this figure missed the IBES estimate of $551.6 million. On a positive note, the company's earnings per share (EPS) of $0.17 surpassed the expected $0.14, while adjusted EBITDA of $82.2 million also beat the estimate of $73.5 million. The number of subscribers grew by 31% to over 2.4 million compared to the previous year.

Despite the mixed results, Hims & Hers maintained its full-year 2025 guidance, projecting revenue between $2.3 billion and $2.4 billion and adjusted EBITDA ranging from $295 million to $335 million. The company also faces an ongoing securities class action lawsuit related to allegations of promoting and selling knockoff versions of the weight-loss drug Wegovy, which may be contributing to investor concerns. As the telehealth sector continues to evolve, investors will be closely watching how Hims & Hers navigates these challenges and capitalizes on its growing subscriber base.