Hims & Hers Health's 12.36% Plunge Drives $6.2B Volume Surge to Top 500 Ranking

On August 5, 2025, Hims & Hers Health (HIMS) closed with a 12.36% decline, marking one of the day’s most actively traded stocks with $6.2 billion in volume—a 164.87% increase from the prior day. The drop followed a shift in its GLP-1 weight-loss treatment strategy, which transitioned from branded offerings to lower-cost, personalized compounded therapies. This shift reduced revenue per subscriber despite a 31% year-over-year rise in platform subscriptions. Quarterly GLP-1-related revenue fell by approximately $40 million compared to the previous quarter, driven by higher operational costs for personalized treatments and a loss of Wegovy subscribers after Novo Nordisk terminated its partnership with Hims over marketing disputes.

Analysts noted the revenue decline was anticipated but criticized the company’s core sexual health business for underperforming. Subscriptions for erectile dysfunction treatments declined in Q2, compounding concerns about the stock’s valuation. Hims’ shares, trading at 95.85 times forward earnings, have surged over 200% this year, contrasting with Novo Nordisk’s Danish-listed shares, which have fallen more than 50%. While short-term caution persists due to subscriber attrition, brokers highlighted growth potential in newer categories like dermatology and daily-use sexual health solutions. Despite the post-earnings sell-off, some firms view the pullback as a buying opportunity for long-term gains.

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