Subscriber growth slowed and free cash flow turned negative amid regulatory changes and supply chain investments.
Shares of Hims & Hers Health fell 13.5% in after-hours trading Monday after the telehealth company missed Wall Street’s second-quarter (Q1) revenue estimates and warned of margin pressure, subscriber stagnation, and regulatory disruption in its compounded weight-loss drug business.
Revenue grew 73% from a year earlier to $544.8 million in Q2, but missed Koyfin’s $552.05 million consensus estimate and came in lower than $586 million in the first quarter (Q1) on a sequential basis.
GAAP EPS was $0.17, beating estimates of $0.16. Adjusted EPS of $0.28 was also higher than expected at $0.23, buoyed by margin leverage and a benefit from lower marketing spending earlier in the quarter.
The miss was largely attributed to GLP-1 subscriber losses and the impact of regulatory changes that required Hims to shift away from mass compounding. Online GLP-1 revenue fell to $190 million in Q2, down from $230 million in Q1, as the company offboarded patients using commercially available dosages.
CFO Yemi Okupe said in the company’s recent earnings call that Hims has pivoted to personalized GLP-1 treatments and expects sales to reaccelerate in Q4 as shipment cadence picks up. Revenue per subscriber declined to $74 from $84 in Q1, resulting from the change.
In the third quarter (Q3) of 2025, Hims projected revenue between $570 million and $590 million and adjusted EBITDA between $60 million and $70 million, representing a margin of 11% to 12%.
For the full year, the company anticipated revenue between $2.3 billion and $2.4 billion, and adjusted EBITDA between $295 million and $335 million, resulting in a margin of 13% to 14%.
Total subscriber count grew by 73,000 sequentially, reaching over 2.4 million by the end of Q2, marking a 31% increase year-over-year.
The company also reported negative free cash flow of $69.4 million, compared to a positive $47.6 million a year earlier. Okupe said this was due to investment aimed at expanding the company’s ability to offer new form factors, automate facility processes, and strengthen supply chains through working capital.
The company expects to return to positive free cash flow generation in the second half of the year.
Hims also reaffirmed its $725 million full-year revenue target for its weight-loss business.
The sexual health segment, which includes generic treatments for erectile dysfunction, also declined during the quarter. Hims is intentionally transitioning users from one-time purchases to higher-retention daily subscription plans, which now account for 65% of new signups.
Okupe said the full impact of this strategy will materialize in 2026, as churn stabilizes and lifetime customer value increases.
The company’s wholesale business, which includes over-the-counter health products sold through retail channels, generated $7.95 million in revenue, down 10% year-over-year.
On Stocktwits, retail sentiment for HIMS was ‘extremely bullish’ amid a 2,973% surge in 24-hour message volume, with the stock also ranking among the platform’s top trending tickers.
One user said they “wouldn’t worry about this at all,” calling it a buying opportunity and urging others not to miss the ride back over $70.
Another predicted that HIMS would be “back at $65 in no time” and hoped others had bought the dip.
A third described the sell-off as “another obvious dip-buy opportunity.”
HIMS stock has risen 151.4%% so far in 2025.
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