Hims & Hers Earnings On Deck As Stock (HIMS) Outperforms- What To Expect

Hims & Hers stock price (NYSE:HIMS) once again bumped into resistance at $70 last week, as markets brace for the telehealth company's earnings results today, after the closing bell. With shares pulling back 5.5% to $62.55, after a risk off end to last week, this morning's pre-market action has HIMS moving higher, up 2.1%.

The street is looking for $0.23 in EPS, against revenue of $552.05million. This would reflect a growth rate of 74.89% in sales, and a significant jump in the $0.16 in EPS from the same period Y/Y. The company's own Q2 revenue guidance was for between $530 million to $550 million, with adjusted EBITDA projected between $65 million and $75 million.

HIMS stock has experienced significant volatility and upward momentum in recent weeks. Over the past month, the stock has surged nearly 30%, and since the turn of the year, up 148%.

The Q2 earnings report will be particularly critical given the impact of the FDA's February 2025 decision to resolve the semaglutide shortage, effectively halting the use of compounded semaglutide in weight loss programs.

This regulatory change directly affected Hims & Hers, which had projected its weight loss segment to generate $725 million in 2025, excluding compounded semaglutide contributions. Following the FDA announcement, HIMS stock dropped 19% in after-hours trading, reflecting immediate market concerns.

For Q1, Hims & Hers reported stellar results, with revenue soaring 111% year-over-year to $586 million. The subscriber base grew by 38% to nearly 2.4 million, and adjusted EBITDA nearly tripled to $91 million.

However, the gross margin contracted by approximately 3 percentage points quarter-over-quarter due to the scaling of GLP-1 revenue, a trend the markets will be watching closely.

In response to the regulatory shift, Hims & Hers is actively diversifying its product offerings. The company plans to introduce generic liraglutide and expand into new specialties, including low testosterone and menopause support.

Strategic partnerships, such as the collaboration with Novo Nordisk to offer branded Wegovy, are also aimed at bolstering its position in the weight loss market.

The markets will be particularly interested in any updates on subscriber acquisition costs, customer retention rates, and the performance of new product lines. The earnings call will also provide an opportunity for management to address concerns about the gross margin contraction and outline strategies to improve profitability.

Expectations are high, with guidance likely to prove pivotal in the next leg. Bulls will be eyeing a firm break above $70, whilst anything less than perfect execution could lead to temporary volatility.