Hims & Hers Health stock drops after mixed Q2 earnings report

The telehealth platform Hims & Hers Health saw a significant drop in stock value after mixed quarterly earnings results.

Hims & Hers Health Faces Stock Decline After Earnings Report

Shares of Hims & Hers Health fell over 9% in after-hours trading following a mixed earnings report for the second quarter. The company posted earnings per share of $0.17, exceeding the expected $0.15 and marking an impressive 183% increase from the same quarter last year. On the revenue front, the company reported $544.8 million, a 73% year-over-year increase, but this figure fell short of the consensus estimate of $551.67 million. Despite growing its subscriber base by 31% to 2.4 million and seeing Adjusted EBITDA more than double to $82.2 million, Hims & Hers also reported a concerning decline in free cash flow, which stood at negative $69.4 million as of June 30, compared to a positive $47.6 million the year prior. Looking ahead, management has set a Q3 2025 revenue estimate between $570 million and $590 million, slightly below analyst expectations.

The recent performance of Hims & Hers Health highlights a growing tension between growth and short-term financial health. Despite impressive increases in revenue and subscribers, the negative cash flow suggests deeper challenges that investors cannot ignore. The company's decision to focus on long-term growth in pharmacy services and lab testing signals ambition, yet the stock's decline indicates investor skepticism about these strategies paying off soon. Analysts remain cautious, producing a 'Hold' rating, underscoring uncertainty about the company's trajectory in a competitive telehealth market.

Highlights

The future of Hims & Hers Health depends on its ability to navigate both growth and cash flow challenges.