New York, Feb 25, 2026, 07:12 EST — Premarket
- Shares edged down 0.5% in late trading, paring some of the sharper after-hours losses seen earlier this week.
- BTIG lowered its rating to “neutral,” pointing to softer growth and regulatory risks.
- Investors are watching the repercussions of scrutiny over compounded weight-loss drugs, along with the timing of the next management update.
Hims & Hers Health slipped 0.5% to $15.46 late Tuesday, with investors grappling with the telehealth company’s cautious short-term forecast heading into Wednesday.
BTIG’s David Larsen cut his rating on the stock to “neutral” from “buy” on Tuesday, citing weaker-than-expected performance, a lackluster outlook for the first quarter, and growing legal and regulatory questions hanging over weight-loss products. Streetinsider
Shares dropped roughly 7% after hours Monday, following guidance released alongside results. The company projected first-quarter revenue between $600 million and $625 million—short of what analysts were looking for—and flagged a $65 million impact this quarter due to new shipping rules on some weight-loss prescriptions.
This hits Hims, a notable player in the GLP-1 obesity drug market—think Novo Nordisk’s Wegovy—just as Washington has been taking a sharper line on “compounded” versions. Those are pharmacy-made copies or tweaks, sometimes permitted during shortages. U.S. Food and Drug Administration
Hims wrapped up 2025 posting revenue of roughly $2.35 billion, a 59% jump year-over-year, with net income landing at $128 million. For 2026, the company projects revenue between $2.7 billion and $2.9 billion, and it’s targeting adjusted EBITDA in the $300 million to $375 million range. Adjusted EBITDA, their preferred profit metric, takes out interest, taxes, depreciation, amortization, plus a handful of other adjustments.
During the call, executives emphasized how diversification shields the business — most of its revenue isn’t tied to GLP-1 products. Subscriber numbers keep climbing, and cash flow remains solid, they said. The company also pointed to stepped-up marketing costs, citing a Super Bowl commercial, as it expands into new areas.
Michael Cherny at Leerink Partners flagged international growth as a longer-term boost, though he emphasized, “the more important component for the stock is how Hims progresses with its weight-loss business.” 1470 100.3 WMBD
Hims is looking beyond the U.S. for expansion, striking a deal this month to acquire Australia’s Eucalyptus. The transaction could reach $1.15 billion, factoring in deferred and performance-based payments that run through 2029.
Right now, Washington is the wild card, not marketing. According to a filing, the U.S. Department of Health and Human Services has kicked the company over to the Department of Justice for a possible probe tied to GLP-1 products, though there’s no clarity yet on what regulators might decide to do. The same document lays out Novo Nordisk’s patent lawsuit, including its push for an injunction that could clamp down on semaglutide-related activity until the patent expires in 2031.
Investors eye March 2 as the next key date, with the company set to speak at Morgan Stanley’s Technology, Media & Telecom Conference. Management is expected to address lingering questions around the weight-loss segment, regulatory risks, and the first quarter outlook.
