HIMS Stock Faces Dual Blow From Expanded FTC Privacy Lawsuit After Selloff Driven By Q3 Subscriber Loss

• The case, originally brought in July 2026 alongside Utah and Los Angeles County, alleges Hims & Hers shared consumers’ sensitive health information with advertising platforms including Meta and Snap. 
• The company had previously termed the allegations “baseless.”
• HIMS stock closed down 17% in the regular session on Tuesday, clocking its worst day since June 2025.

Shares of Hims & Hers Health (HIMS) continued to slide in after-hours trading on Tuesday as the telehealth provider faced fresh regulatory pressure on top of a disappointing earnings report released the day before.

The Federal Trade Commission on Tuesday filed an amended complaint in the U.S. District Court for the Northern District of California, adding Arizona, Florida, Nebraska, Ohio, and Wisconsin as co-plaintiffs. The case, originally brought in July 2026 alongside Utah and Los Angeles County, alleges Hims & Hers shared consumers’ sensitive health information with advertising platforms including Meta and Snap despite representing that its services protected privacy.

Regulators further claim the company charged for prescriptions almost immediately after users submitted intake forms, contrary to statements that customers would first consult a provider to find suitable treatment, and that it made subscriptions difficult to cancel. The company had previously termed the allegations “baseless.” Last month, it also filed a motion asking a California federal judge to dismiss the Federal Trade Commission’s lawsuit. The motion is now set for hearing on January 7.

HIMS stock dropped 1% after hours on Tuesday, after closing down 17% in the regular session and clocking its worst day since June 2025.

Earnings Miss And Guidance Cut Weigh on Shares

The regulatory pressure arrives as investors absorb third-quarter results reported after the market close on Monday. Revenue rose 49% year-over-year to approximately $890 million but fell just short of expectations. The company swung to a surprise net loss of $33.0 million, or $0.14 per share, from net income of $15.8 million in the year-ago quarter, surprising Wall Street, which expected profit of about $0.06.

Gross margin contracted to 57% from 74%, pressured by international expansion costs and a mix shift toward lower-margin branded offerings, and subscribers declined sequentially by about 100,000 as marketing was restrained. CEO Andrew Dudum described the subscriber losses as a deliberate trade-off to support higher-margin growth initiatives into 2027, and the management subsequently warned of an “additional quarter of subscriber count headwinds”.

Management further cut full-year 2026 adjusted core profit guidance to $257–$277 million—its third reduction this year—and tightened revenue guidance to $3.13–$3.15 billion, while guiding fourth-quarter revenue of $875 million–$895 million, below Street estimates.

How Did HIMS Retail Traders React?

On Stocktwits, retail sentiment around HIMS stock stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume stayed at ‘extremely high’ levels.

A Stocktwits user expressed disappointment about the subscriber drop and opined that the stock will stay stagnant until 2027.

Another user noted that the stock is currently trading at a good discount.

HIMS stock has dropped 41% year-to-date. 

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