New York, Feb 25, 2026, 07:12 EST — Premarket
- Shares last slipped 0.5% in late trade after a sharp after-hours drop earlier this week
- BTIG cut its rating to “neutral,” citing slowing growth and regulatory risk
- Investors are tracking fallout from scrutiny of compounded weight-loss drugs and next management update
Hims & Hers Health shares were last down 0.5% at $15.46 in late trading on Tuesday, as investors headed into Wednesday’s session still digesting the telehealth firm’s cautious near-term outlook.
BTIG analyst David Larsen downgraded the stock to “neutral” from “buy” on Tuesday, pointing to what he called disappointing results, a soft first-quarter setup and rising legal and regulatory uncertainty around weight-loss products. (Streetinsider)
The pressure stems from guidance issued with results on Monday, when the company forecast first-quarter revenue of $600 million to $625 million, below analysts’ expectations, and said the quarter would absorb a $65 million hit tied to changes in how certain weight-loss prescriptions must be shipped. Shares fell about 7% after hours after that update. (Reuters)
That matters because Hims has been a prominent seller of GLP-1 obesity drugs — a class that includes Novo Nordisk’s Wegovy — and the U.S. government has been tightening its tone on “compounded” versions, which are pharmacy-made copies or variations that can be allowed in limited situations, such as shortages. (U.S. Food and Drug Administration)
Hims said it ended 2025 with revenue of about $2.35 billion, up 59% from a year earlier, and net income of $128 million, while giving 2026 revenue guidance of $2.7 billion to $2.9 billion and adjusted EBITDA of $300 million to $375 million. Adjusted EBITDA is a profit measure that excludes interest, taxes, depreciation and amortization and other items the company adjusts out. (Hims)
On the earnings call, executives leaned on diversification, arguing most revenue comes from outside GLP-1 offerings, while also highlighting continued subscriber growth and cash generation. The company also flagged higher marketing spend, including a Super Bowl ad, as it pushes into newer categories. (The Motley Fool)
Michael Cherny, an analyst at Leerink Partners, said international expansion could broaden the long-term opportunity, but “the more important component for the stock is how Hims progresses with its weight-loss business.” (1470 & 100.3 WMBD)
Hims has also been pitching growth outside the U.S., including a deal announced this month to buy Australia-based Eucalyptus in a transaction valued at up to $1.15 billion, with additional deferred and performance-based payments stretching into 2029. (SEC)
But the near-term swing factor is Washington, not marketing. A filing said the U.S. Department of Health and Human Services referred the company to the Department of Justice for a potential investigation tied to GLP-1 products, and it warned it was unclear what actions regulators might take. The same filing detailed Novo Nordisk’s patent suit and its request for an injunction that could restrict semaglutide-related activity through the patent’s stated expiry in 2031. (SEC)
The next hard catalyst is March 2, when the company is scheduled to appear at Morgan Stanley’s Technology, Media & Telecom Conference, offering the next chance for investors to hear management address the weight-loss business, regulatory exposure and the path through the first quarter. (Hims)
