Hims & Hers Health Stock Falls 12% Despite 73% Revenue Growth

Hims & Hers Health (HIMS) fell 12.36% to $55.52 after missing Q2 revenue expectations despite a 73% YoY growth to $544.8 million. Net income was $42.5 million, beating forecasts, and adjusted EBITDA more than doubled to $82.2 million. Subscribers rose 31% to 2.4 million, and average monthly revenue per user grew 30%. Management reaffirmed full-year guidance and highlighted future expansion into hormone health, diagnostics, and longevity services.

Title: Hims & Hers Health Misses Q2 Revenue Estimates Despite Strong Growth

Hims & Hers Health, Inc. (HIMS) reported its second-quarter 2025 earnings on August 4, 2025, with mixed results. The company's stock fell 12.36% to $55.52 after missing quarterly revenue expectations. However, the company achieved a 73% year-over-year (YoY) growth in GAAP revenue, reaching $544.8 million, which was 1.2% below the consensus estimate of $551.7 million [1].

Despite the revenue shortfall, the company's net income was $42.5 million, surpassing analyst expectations. Adjusted EBITDA more than doubled to $82.2 million, indicating improved operational efficiency. The gross margin, however, dropped from 81% in Q2 2024 to 76%, reflecting increased costs and lower margins on weight loss treatments [1].

The company's subscriber count grew by 31% to 2.44 million, and the average monthly revenue per user increased by 30% to $74. This growth was driven by personalized care programs in areas such as weight management and mental health. Online revenue, a key segment for the company, climbed 75% YoY, while wholesale revenue declined by 10% [1].

Management reaffirmed its full-year guidance and highlighted plans for future expansion into hormone health, diagnostics, and longevity services. The company's cash flow turned negative, with free cash flow (non-GAAP) swinging from $47.6 million positive in Q2 2024 to negative $69.4 million. Inventory more than doubled to $141.8 million, and capital expenditures were $50.3 million compared to $6.0 million in Q2 2024. The dividend status remains unchanged, with HIMS not currently paying a dividend [1].

The company's ability to scale its digital platform and introduce new specialty areas is crucial for its future success. The recent partnership with pharmaceutical leader Novo Nordisk introduces branded GLP-1 drugs, further enhancing the company's offerings [1].

The sustainability of the stock's immediate price movement will depend on management's commentary on the earnings call and future earnings expectations. Investors can track earnings estimate revisions using tools like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions [2].

# References:
[1] https://www.nasdaq.com/articles/hims-hers-health-inc-hims-misses-q2-earnings-and-revenue-estimates
[2] https://www.mitrade.com/insights/news/live-news/article-8-1011172-20250805