Hims & Hers Health Plunges 14.59% on Negative Cash Flow

On August 5, 2025, Hims & Hers Health experienced a significant drop of 14.59% in pre-market trading, reflecting a notable decline in investor sentiment.

Hims & Hers Health reported its second-quarter 2025 financial results, revealing a revenue of $544.8 million, a substantial increase from the previous year's $315.6 million. This growth indicates a strong performance in the company's core business operations. However, the company also reported a negative free cash flow of $69 million, primarily due to significant investments in inventory and working capital. This financial move suggests that the company is focusing on long-term growth and expansion, which may have contributed to the pre-market drop as investors reassess the company's short-term financial health.

During the earnings call, Hims & Hers Health reported an earnings per share (EPS) of $0.17, surpassing market forecasts of $0.15. This positive surprise of 13.33% indicates that the company is performing better than expected, which could potentially mitigate some of the concerns raised by the negative free cash flow. The company's CEO retained a majority of shares, modestly increasing his direct stake, which may signal confidence in the company's future prospects.