What Happened?

Shares of telehealth company Hims & Hers Health (NYSE: HIMS) fell 27.6% in the afternoon session after the company delivered mixed fourth-quarter 2024 results: It added fewer customers than expected, and EBITDA came in a bit short, but revenue soared year over year, easily beating Wall Street's forecasts. This jump came from surging demand in the weight-loss business, which remains a key growth engine. 

That said, EBITDA slightly missed estimates, and gross margin fell from 83% to 77%, signaling rising costs to attract and serve customers. 

Looking ahead, Hims & Hers provided optimistic guidance, projecting full-year 2025 revenue and adjusted EBITDA well above analysts' expectations. 

Overall, we think this was still a solid quarter with some key areas of upside, but the worse-than-anticipated customer additions and EBITDA seem to be sending shares lower. We also note that expectations were high going into the print as the stock was up 104% year-to-date before the announcement.

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What The Market Is Telling Us

Hims & Hers Health’s shares are extremely volatile and have had 73 moves greater than 5% over the last year. But moves this big are rare even for Hims & Hers Health and indicate this news significantly impacted the market’s perception of the business. 

The previous big move we wrote about was 4 days ago when the stock dropped 24% on the news that U.S. Food and Drug Administration (FDA) reported that the shortage of weight-loss drugs such as Wegovy and Ozempic has ended. This could lead to lower sales for companies like Hims & Hers Health, which sell weight-loss medications through their platform.

Hims & Hers Health is up 58.2% since the beginning of the year, but at $39.86 per share, it is still trading 42% below its 52-week high of $68.74 from February 2025. Investors who bought $1,000 worth of Hims & Hers Health’s shares 5 years ago would now be looking at an investment worth $3,947.

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