Shares of Hims & Hers Health Inc. (HIMS) tumbled 12.39% in a 24-hour period 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 analyst estimates of $551.6 million. On a positive note, the company's earnings per share (EPS) of $0.17 surpassed the expected $0.15. The number of subscribers grew by 31% to over 2.4 million compared to the previous year.
The revenue miss was primarily attributed to a decline in the company's GLP-1 weight-loss drug business, which generated $190 million in online revenue during the second quarter, down from $230 million in the first quarter. Additionally, the company's sexual health business experienced a slowdown. Despite these challenges, Hims & Hers maintained its full-year 2025 guidance, projecting revenue between $2.3 billion and $2.4 billion. The company emphasized its commitment to providing personalized, high-quality care and entering new, high-impact specialties, but investors seemed concerned about the short-term revenue challenges and potential regulatory hurdles in the weight-loss drug market.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.