BTIG downgraded Hims & Hers (NYSE:HIMS) to Neutral from Buy on Monday, pointing to earnings results that fell short of its projections, a cautious outlook for the coming quarter, and growing legal and regulatory concerns.
For the fourth quarter the company reported revenue of $617.8 million, a 28% increase versus the year-ago period but below BTIG's $640.1 million estimate and slightly under consensus at $619 million. Adjusted EBITDA was $66.3 million, up 23% year-over-year, yet beneath BTIG's $75.8 million forecast while remaining above the consensus figure of $62 million.
The shares have been punished over the past year, losing nearly 70% of their value and trading at $15.51 at the time of reporting. That price sits just above the 52-week low of $15.15 and considerably below the 52-week high of $70.43.
Looking ahead, Hims & Hers set first-quarter revenue guidance in the range of $600 million to $625 million. That guidance is materially under BTIG's $673.2 million model and below consensus expectations of $653 million. Management provided a first-quarter adjusted EBITDA outlook of $35 million to $55 million, which contrasts with BTIG's $93.9 million estimate and the $82 million consensus number.
The company attributed a $65 million first-quarter revenue headwind to 503A shipping cadences. BTIG further noted that this shortfall may be connected to heightened regulatory scrutiny, potential alterations in marketing and advertising practices, or stronger-than-anticipated demand for branded GLP-1 medications among consumers.
On a full-year basis for 2026, Hims & Hers issued guidance for revenue between $2.7 billion and $2.9 billion, below BTIG's $2.99 billion projection. Adjusted EBITDA guidance for 2026 of $300 million to $375 million also came in under BTIG's $425 million estimate.
BTIG highlighted several risk factors behind its downgrade, including a lawsuit brought by Novo Nordisk, increased Food and Drug Administration scrutiny, and the possibility of a Department of Justice probe.
Independent broker reactions have varied following the quarter. Leerink Partners reduced its price target to $17.50 from $20.00, citing concerns tied to the company's weight-loss business and the attendant regulatory issues. Evercore ISI lowered its target from $33 to $24 and said target multiples were reduced after the earnings report. Bank of America Securities trimmed its target to $12.50 from $13.00, calling the quarter mixed as revenue and subscriber metrics missed expectations despite adjusted EBITDA beating estimates.
Separately, Hims & Hers reported fourth-quarter earnings per share of $0.08, above the $0.05 forecast. The quarter's revenue figure of $617.8 million was narrowly below an expected $618.73 million. The company saw a positive reaction in after-hours trading following the release, even as it warned that first-quarter revenue would fall short of Wall Street estimates. Management linked that guidance shortfall in part to regulatory scrutiny affecting its weight-loss business and to increased investment in international expansion.
The stock's valuation picture is mixed. Data from InvestingPro indicates the shares are trading below Fair Value at current levels, and the platform makes available Pro Research Reports and additional analysis for subscribers.
Investors and market participants will be watching how regulatory developments, the outcome of litigation, and execution on international growth influence the company's ability to return to prior growth trajectories and margin targets.