Shares of Hims & Hers Health Inc. (NYSE: HIMS) saw a sharp decline of 11% in after-hours trading on Monday, August 4, 2025, as the telehealth company missed Wall Street revenue expectations for the second quarter. Although Hims earnings slightly beat consensus forecasts, the market reacted negatively to a revenue shortfall and concerns over a recent pharmaceutical partnership termination.
Hims Earnings Beat Expectations — But Investors Remain Wary
According to S&P Global Market Intelligence, Hims earnings came in at $0.17 per share, narrowly beating analyst expectations of $0.16 per share. This marks a positive signal in terms of profitability and margin control, reinforcing the company’s operational efficiency.
However, second-quarter revenue reached $544.83 million, representing a strong 73% year-over-year increase, but still missed analyst expectations of $552 million. This revenue miss overshadowed the earnings beat and sparked investor concerns about slowing growth momentum in an increasingly competitive telehealth space.
Full-Year Guidance Maintained Amidst Uncertainty
Despite the disappointing revenue performance, Hims & Hers reaffirmed its full-year revenue guidance between $2.3 billion and $2.4 billion, signaling confidence in its business model and growth pipeline. For the upcoming third quarter, the company expects sales between $570 million and $590 million, a guidance range that suggests continued sequential growth.
Yet, concerns loom. The unexpected termination of a partnership with Novo Nordisk to sell the GLP-1 drug Wegovy through the Hims & Hers platform has added a layer of uncertainty to its outlook. Novo Nordisk cited the availability of compounded weight-loss drugs, including those sold by Hims, as a key factor in ending the agreement — an event likely to affect future growth in the weight management vertical.
Hims Stock Reacts to Competitive Pressure and Partnership Fallout
The Hims stock selloff reflects not only the revenue miss but also broader apprehension about the company’s reliance on key pharmaceutical partnerships. Telehealth firms like Hims are increasingly dependent on unique drug offerings and exclusive collaborations to stay ahead of rivals. The loss of Wegovy on its platform reduces a high-demand offering at a time when consumer interest in weight-loss solutions is surging.
Industry analysts suggest that the broader telehealth sector remains promising, especially with the rise in virtual care adoption post-pandemic. However, Hims stock will need to regain investor confidence by executing its strategic roadmap effectively — including potential new partnerships and a deeper focus on personalized health solutions.
Strategic Opportunities Still on the Table
While the current dip in Hims stock reflects short-term challenges, the long-term outlook remains cautiously optimistic. With growing demand for accessible, online healthcare and personalized treatments, Hims & Hers remains well-positioned to tap into a $500 billion digital health market.
The company has also expanded into mental health, skincare, and sexual wellness — diversified revenue streams that may help mitigate any fallout from its weight-loss drug offering changes. Furthermore, continued improvements in Hims earnings performance suggest disciplined cost control and scalable infrastructure.
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