The New York Stock Exchange with a Hims & Hers Health banner is pictured in the Manhattan borough of New York City.
Carlo Allegri | Reuters
Hims & Hers Health shares plunged 18% in extended trading on Monday after investors looked past better-than-expected revenue and earnings and focused instead on the disappointing gross margin.
Here’s how the company did, compared to analysts’ consensus estimates from LSEG:
- Earnings per share: 11 cents vs. 10 cents expected
- Revenue: $481 million vs. $470 million expected
Revenue at the telehealth company increased 95% in the fourth quarter from $246.6 million during the same period last year, according to a release.
However, the company’s gross margin, or the profit left after accounting for the cost of goods sold, was 77%, while analysts polled by StreetAccount were expecting 78.4%.
It’s the second big stock drop for Hims & Hers in a matter of days. The shares tumbled 26% on Friday after the U.S. Food and Drug Administration announced that the shortage of semaglutide injection products has been resolved.
In May, Hims & Hers started prescribing compounded semaglutide, the active ingredient in Novo Nordisk’s blockbuster GLP-1 medications Ozempic and Wegovy. The company was a breakout star within the digital health sector in 2024, in part because of the success of its popular new weight loss offering. The stock climbed about 200% for the year.
Compounded drugs are custom-made alternatives to brand-name drugs designed to meet a specific patient’s needs, and compounders are allowed to produce them when brand-name treatments are in shortage. The FDA said Friday that it will start taking action against compounders for violations in the next 60 to 90 days.
Hims & Hers also offers treatments for skin care, mental health, sexual health and hair care.
Excluding its GLP-1 offerings, revenue increased 43% to $1.2 billion for the full year, “meeting our previous 2025 revenue target a year early,” CFO Yemi Okupe said in a release.
“The success we are experiencing is a direct reflection of our improving ability to democratize access to high quality, personalized care across each of our specialties,” Okupe said.
Net income climbed to $26.01 million, or 11 cents per share, from $1.25 million, or 1 cent per share, a year prior. The company reported adjusted earnings of $54.1 million, meeting analyst estimates, according to StreetAccount.
For the first quarter, Hims & Hers expects to report revenue of $520 million to $540 million, while analysts were expecting $497 million. Adjusted earnings will be between $55 million to $65 million for the period, the company said.
Hims & Hers will host its quarterly call with investors at 5:00 p.m. ET.
— CNBC’s Brandon Gomez contributed to this report.
