Hims & Hers Health Inc. (NYSE:HIMS) plunged 13.1% in Tuesday pre-market after the digital health company reported second-quarter revenue on Monday that missed Wall Street expectations.
Hims & Hers Misses Q2 Sales, Beats On Profit, Eyes Growth
The company reported $278.2 million in Q2 revenue, falling short of analyst forecasts of $280.2 million. Net income came in at $11.7 million, or $0.05 per share, topping estimates and marking a notable improvement from the $7.8 million reported a year earlier. However, the revenue miss triggered a pullback in the stock on Monday.
Despite the shortfall, management maintained a positive growth outlook, highlighting new opportunities ahead, especially in the weight loss space.
CEO Andrew Dudum remained upbeat, calling it “an exciting period of innovation and growth” during Monday’s earnings call. He emphasized Hims & Hers’ recent expansion into the GLP-1 weight loss drug market, a move seen as a strategic counter to flagging momentum among legacy players like Novo Nordisk (NYSE:NVO) and Eli Lilly (NYSE:LLY).
Hims gains as GLP-1 rivals face pricing, safety heat
In July, Hims stock had surged to near all-time highs after announcing plans to offer compounded versions of GLP-1 drugs—popularly used in Wegovy and Ozempic—at a more accessible price point. That momentum coincided with recent weakness in Novo Nordisk's stock, which some analysts attributed to concerns about patient retention and warning labels related to Wegovy's long-term use.
As Novo Nordisk and Eli Lilly face increasing scrutiny over pricing and side effects, Hims is leveraging its telehealth platform and vertically integrated supply chain to position itself as a more scalable and consumer-friendly alternative. Shay Bolor, the chief market strategist at Futurum Equities stated that if Novo had "embraced Hims' model," it might have mitigated recent stock volatility.
Despite the Q2 revenue miss, Hims’ strong user growth and competitive pricing in the weight loss category suggest the company may still hold long-term upside—especially as weight management continues to drive demand across digital health platforms.
Benzinga Edge Stock Rankings shows that Hims & Hers Health had a strong price trend over the long, medium and short term. Its momentum ranking was 98.06, whereas its growth ranking was strong at 98.98; the details of other metrics are available here.
READ MORE:
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
