Hims & Hers Health (NYSE: HIMS) stock plummeted more than 18% in after-hours trading on Monday after the telehealth company delivered a disappointing fourth-quarter earnings report. While revenue beat Wall Street expectations, weaker-than-expected earnings stole the spotlight and triggered the sell-off.
For the three months ending December 31, the company reported earnings of $0.11 per share on revenue of $481.1 million. Analysts, however, had forecast earnings of $0.17 per share on revenue of $469.3 million. The revenue beat couldn’t offset the earnings shortfall, leaving investors unsettled.
The company pointed to strong growth in its core operations, noting,
“Revenue excluding our GLP-1 offering increased 43% year-over-year to over $1.2 billion in 2024, meeting our previous 2025 revenue target a year early.”
Looking to the first quarter, Hims & Hers Health (NYSE: HIMS) expects revenue to land between $520 million and $540 million, topping analyst expectations of $494.6 million. The company also anticipates adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to range from $55 million to $65 million.
For the full year of 2025, it forecasts revenue between $2.3 billion and $2.4 billion, paired with adjusted EBITDA of $270 million to $320 million.
Analyst opinions stayed steady ahead of the report. Piper Sandler reiterated its Neutral rating on Hims & Hers Health, maintaining a price target of $24.00. BofA Securities, meanwhile, held firm on its Underperform rating with a price target of $21.00.
The sharp stock drop reflects investor concerns over profitability, even as the telehealth company showcases robust revenue growth and an optimistic outlook for 2025. The telehealth firm now faces the challenge of balancing expansion with stronger earnings to regain market confidence.
