The stock rose about 5 percent today, winning back some ground after a steep slide, and remains about 16 percent below its recent high. We think this is mostly a recovery from yesterday's drop, helped by news that the company is launching an AI-powered app for its weight loss subscribers.
Our view
A lawsuit from the government is a serious headline to watch, but it doesn't change the fact that the company is growing its subscriber base and profits very quickly. If you already own it, the best move is to sit tight and wait for the next set of financial results on Monday.
New AI-powered app launched for weight loss members
The company is launching a new version of its Hers app that integrates artificial intelligence directly into the patient experience. Initially available for weight loss members, the tool is designed to track progress in real time and provide proactive, doctor-led guidance to help users stay on track with their goals.
This move is part of the company's effort to move beyond just selling pills and toward becoming a full-service health platform. By using AI to handle routine check-ins and personalized advice, the company can provide more frequent support to its 2.2 million subscribers without needing to hire a proportional number of human staff. If this keeps users subscribed for longer, it strengthens the high-margin recurring revenue that makes the business model work.
Law firm investigates board over data and billing practices
A law firm is investigating the board of directors for potential breaches of their duty to shareholders. The inquiry focuses on whether the company shared private health data with advertisers like Meta and Snap, and if it used deceptive billing or made subscriptions difficult to cancel. This follows a recent lawsuit from the Federal Trade Commission. While law firm investigations are common after regulatory news, these specific claims about data privacy and billing are central to the trust patients place in a digital pharmacy. If the allegations prove true, they could lead to higher costs for finding new customers or changes to how the company earns its subscription revenue.
Company newsPositive
Aug 3
Potential FDA rule change could open new peptide market
The FDA is considering changes to how it regulates peptides, which are short chains of amino acids used in treatments for weight loss and anti-aging. If the agency loosens manufacturing restrictions, it could allow the company to offer a wider range of these treatments to its subscribers.
This is important because the company's business model relies on taking generic or compounded drugs and turning them into personalized brands. A friendlier regulatory environment for peptides would expand the list of products the company can sell through its digital platform, potentially adding a new multi-billion-dollar growth engine alongside its current hair loss and weight management offerings.
LegalConcerning
Jul 29
FTC sues over data privacy and billing practices
The Federal Trade Commission (FTC), the government agency that protects consumers, has filed a lawsuit against the company. The agency alleges that sensitive health information was shared with advertisers like Meta and Snap without clear consent. It also claims the company charged customers for prescriptions before they spoke with a doctor and made it too difficult to cancel subscriptions.
The stock fell about 10 percent on the news. This is a serious challenge because the company's growth depends on its reputation as a trusted healthcare provider. If it is forced to change how it signs up customers or manages data, it could make it more expensive to find new subscribers and harder to keep existing ones. The company has responded by calling the lawsuit an attempt to generate headlines rather than a valid consumer protection case.
Irene Becklund, the Chief Accounting Officer, is leaving the company on October 9, 2026. She has been with the firm for over seven years and will stay on as an advisor for several months to help with the transition. CFO Yemi Okupe will handle her responsibilities while the company looks for a permanent replacement. This appears to be an orderly departure rather than a sudden exit. While losing a long-time accounting leader is worth noting, the planned transition and advisory period suggest there are no immediate concerns regarding the company's financial reporting or internal controls.
Analysts have recently maintained their existing ratings despite a flurry of legal investigations surrounding the company. Only 7 of 20 analysts recommend buying the stock, and the average price target of $27 sits 13% below the current price.
Average target$26.91-13%vs $31.05 today
Avg price
Low $12.50High $40
Hold20 analysts
0Bearish
13Neutral
7Bullish
FirmRatingPrice TargetDate
UBS
—
$37
7/9/2026
Canaccord Genuity
Buy
$32→$40
7/1/2026
Barclays
Overweight
$29→$39
6/17/2026
Leerink Partners
Market Perform
$25
6/2/2026
UBS
—
$25
5/26/2026
UBS
—
$18→$23
5/22/2026
Jefferies
—
$25.50→$24.50
5/12/2026
UBS
—
$30→$35
5/12/2026
Canaccord Genuity
Buy
$30→$32
5/12/2026
Deutsche Bank
Hold
$28→$25
5/5/2026
Deutsche Bank
Hold
$25→$28
3/10/2026
Needham
Buy
$30
3/9/2026
Hims & Hers Health earnings
The company has a history of beating expectations, though its most recent report showed a surprise loss. Management generally delivers strong growth even when the bottom line is choppy.
Earnings history
EstimateBeatMiss
Hims & Hers Health past earnings results
Expected
Actual
Surprise
EPS
$0.03
$-0.40
-1676.7%
Revenue
$617M
$608M
-1.4%
Key highlights
Revenue outlook raised: Management expects full year revenue to reach between $2.8 billion and $3.0 billion, which would be a significant step up from the $608 million generated this quarter. This higher target reflects growing demand as the company expands its weight loss treatments and moves into more international markets.
Slowing subscriber growth: The total number of subscribers grew 9% to nearly 2.6 million, a sharp slowdown from the 45% growth seen a year ago. Maintaining a large, active user base is vital for this subscription business, so this slower pace suggests it is becoming harder to find and keep new customers.
Profit margins shrinking: Gross margin, which shows what is left after making and shipping products, fell to 65% from 73% last year. This drop was largely caused by $33.5 million in one-time costs related to a strategic shift in how the company sells weight loss medications.
Spending per user dipping: The monthly revenue collected from each average subscriber fell 6% to $80 compared to $85 in the same period last year. This decline is a concern for long-term owners because it means the company is earning less money from each person on its platform.
International business booming: Revenue from outside the United States jumped to $78.2 million from just $7.3 million a year ago. While the domestic business actually shrank 8%, this massive international expansion is now providing a necessary new engine for total growth.
Our take: This was a soft quarter that showed the business is in the middle of a difficult transition. The heavy drop in profit margins and slowing subscriber growth are concerning, but the big jump in international sales and higher full year guidance suggest the new strategy has potential. It is a messy but necessary reset for the long-term story.
Hims & Hers Health’s next earnings date
Q2 2026
AUG
10
Expectation
EPS
$-0.05
Revenue
$699M
Metrics we are tracking
Metric
Expectations
Status
Subscriber Growth
Maintaining year-over-year growth above 40%
9% YoY in Q1 2026
Personalization Mix
Subscribers using customized treatments staying above 50%
Over 50% as of Q3 2024
Adjusted EBITDA Margin
Reaching and sustaining a margin above 12%
7% in Q1 2026
Monthly Online Revenue
Staying above $65 per average subscriber
$80 in Q1 2026
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