Hims & Hers Health Posts Weak Q2; Heading Into More Near-Term Challenges, Analysts Say

Benzinga
2025.08.05 15:11
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Hims & Hers Health Inc reported disappointing Q2 revenues, leading to a 4.5% drop in shares to $60.55. Analysts from BofA Securities and Needham expressed concerns over the company's near-term challenges, including stagnant core business growth and regulatory complexities from the ZAVA acquisition. BofA maintained an Underperform rating with a $28 price target, while Needham reiterated a Hold rating, noting revenue of $544.8 million fell short of expectations. The company faces hurdles in its GLP-1 and sexual health segments while planning expansions into hormonal health and Canada by 2026.

Shares of Hims & Hers Health Inc HIMS are under pressure Tuesday, after the company reported downbeat second-quarter revenues.

The announcement came amid an exciting earnings season. Here are some key analyst takeaways.

  • BofA Securities analyst Allen Lutz maintained an Underperform rating and price target of $28.
  • Needham analyst Ryan MacDonald reiterated a Hold rating on the stock.

Check out other analyst stock ratings.

BofA Securities: Hims & Hers Health reported weaker-than-expected results and reiterated its full-year guidance, Lutz said in a note. The company is facing several near-term headwinds, including the absence of growth in its core business, which could exert greater pressure on the GLP-1 (Glucagon-like peptide-1) business, he added.

Hims & Hers Health's ZAVA acquisition "adds a lot of regulatory complexity and will require substantial resources to get up and running," the analyst wrote. The back half of the year could be even more challenging for the company. As the investment cycle unfolds, cash flow generation remains lmiited in the near term.

Needham: Hims & Hers Health reported revenue of $544.8 million, missing consensus of $551.7 million, MacDonald said. The company's average monthly revenue per subscriber came in at $74 in the quarter, representing a sequential contraction of 11.9%, he added.

Management reiterated its full-year revenue and adjusted EBITDA guidance, noting that the company is facing challenges with the GLP-1 and sexual health transitions while investing to launch hormonal health in the second half of the year and expand into Canada in 2026, according to the analyst. "While new categories/regions represent an attractive opportunity for HIMS, we believe near-term share performance remains tied to weight loss, which continues to be surrounded by regulatory questions," he further wrote.

HIMS Price Action: Shares of Hims & Hers Health had declined by 4.5% to $60.55 at the time of publication on Tuesday.

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