Hims & Hers Shares Tumble as Profit Miss Overshadows Revenue Growth

The telehealth sector faced a stark reminder of its volatility as Hims & Hers Health, Inc. saw its stock decline sharply following a disappointing quarterly earnings report. While the company achieved record revenue, a significant profit shortfall and emerging competitive pressures in the weight-loss medication space spooked investors, raising questions about its near-term growth trajectory.

Profitability Pressures Emerge Despite Sales Surge

For the third quarter of 2025, the company’s financial performance presented a conflicting picture. On one hand, Hims & Hers surpassed revenue expectations and subsequently raised its full-year 2025 outlook, projecting sales between $2.335 billion and $2.355 billion. This represents a robust year-over-year increase of nearly 60%.

However, this top-line success was severely undermined by a substantial miss on profitability. The company reported an adjusted profit of just $0.06 per share, falling well short of the $0.10 per share forecast by market analysts. The profit contraction was primarily driven by rising product costs and a noticeable slowdown in sales volume for its high-margin weight-loss medications—a core segment that investors had heavily relied upon for growth.

Strategic Challenges in the Weight-Loss Arena

The company’s position in the lucrative GLP-1 weight-loss drug market is becoming increasingly complex. Investor sentiment was further dampened by the recent disclosure of a pricing agreement for these in-demand medications. Simultaneously, reports indicate that Hims & Hers is in discussions with Danish pharmaceutical leader Novo Nordisk regarding the distribution of its blockbuster drug, Wegovy.

Should investors sell immediately? Or is it worth buying Hims & Hers?

This reliance on third-party suppliers introduces significant operational risks, a reality the company confronted in September 2025. During that period, the U.S. Food and Drug Administration (FDA) accused the firm of making “false or misleading” claims related to its semaglutid-based preparations—an allegation that continues to impact its brand reputation.

A Diversified Future Beyond Weight Management

In response to the heightened competition in its core markets, Hims & Hers is actively pursuing a strategic pivot. Management is focusing on diversification, launching new treatment solutions for menopause symptoms and testosterone deficiency. The goal is to attract fresh patient demographics and reduce dependency on any single product category.

The long-term corporate vision remains ambitious. By 2030, the company aims to achieve $6.5 billion in annual revenue and an adjusted EBITDA of $1.3 billion. This growth is projected to be fueled by international market entry and the successful rollout of these new therapeutic lines.

Despite this forward-looking strategy, the market’s current skepticism is reflected in the stock’s performance. With an annualized volatility exceeding 84%, the equity continues to be classified as a high-risk, speculative holding.