Hims & Hers Health (NASDAQ:HIMS) shares tumbled 7.4% to $14.40 in premarket trading Tuesday after the telehealth company provided first-quarter revenue guidance that came in below Wall Street estimates.
The company said on Monday that projected revenue would miss analyst expectations, attributing the shortfall in part to regulatory scrutiny around its weight-loss business and to increased investment as it expands internationally.
Following the quarterly results and the weaker-than-expected guide, BTIG downgraded Hims & Hers to Neutral. BTIG pointed to several concerns, including disappointing fourth-quarter results, a soft Q1 outlook, slowing revenue growth, and heightened legal and regulatory risk.
BTIG highlighted a specific $65 million revenue headwind in Q1 tied to 503A shipping cadences. The firm said that headwind could reflect increased regulatory scrutiny, potential changes to marketing and advertising practices, or stronger consumer demand for branded GLP-1 treatments.
Bank of America weighed in on litigation risk, drawing a comparison between current uncertainty for Hims & Hers - involving scrutiny from the FDA, Novo Nordisk, and the SEC - and past litigation that affected drug distributors. The bank said the uncertainty could mirror the way opioid-related litigation compressed multiples for distributors until those disputes were resolved, and it said that outcome represents a reasonable base case for Hims & Hers.
Leerink maintained a Market Perform rating but lowered its price target to $17.50 from $20. The firm cited an inability to feel confident in Hims & Hers' outlook if there are further developments on the GLP-1 front. Leerink also rolled forward its 10x EV/EBITDA target multiple from fiscal year 2026 to fiscal year 2027 while lowering estimates.
Barclays said the company’s revenue guidance - approximately 19% growth at the midpoint - helps to address some GLP-1 related concerns. However, Barclays noted that the lower EBITDA outlook embeds significant investments as Hims & Hers broadens its focus beyond GLP-1 products. The bank expects the shares to be volatile and range-bound in the near term as investors evaluate the company’s fiscal year 2026 ramp plans.
Context for markets: The developments affect the telehealth and broader healthcare sectors, with potential ripple effects for companies tied to weight-loss treatments and drug distribution chains. Investor attention is concentrated on regulatory developments, litigation exposure, and the impact of ramped international spending on near-term profitability.