Hims & Hers Health (HIMS) Stock Plunges 7-9% to Near $14 After Soft Q1 2026 Guidance Despite Q4 Beat

Hims & Hers Health Inc. (NYSE: HIMS) shares tumbled sharply in trading on Tuesday, February 24, 2026, falling as much as 9% intraday to around $14.07-$14.40 after the telehealth company issued first-quarter 2026 revenue guidance that missed Wall Street estimates, citing regulatory headwinds to its compounded semaglutide offerings.

The stock closed the prior session (February 23) at $15.51, down 0.77%, with after-hours and pre-market action pushing it lower to reflect investor disappointment with the outlook. Volume spiked to over 18-43 million shares in recent sessions, well above average, as the reaction erased much of the recent recovery gains. Year-to-date in 2026, HIMS is down more than 50%, with the stock trading near its 52-week low of $13.74-$15.15 after peaking above $70 in mid-2025.

Hims & Hers reported fourth-quarter and full-year 2025 results on February 23, posting revenue of $617.8 million for Q4 (up 28% year-over-year) and full-year revenue of $2.35 billion (up 59%). Adjusted EBITDA reached $318 million for the year, with net income of $128 million and subscribers surpassing 2.5 million (up 13%). Q4 EPS of $0.08 beat consensus estimates of $0.02-$0.05, reflecting solid execution in personalized care, weight-loss products, and non-GLP-1 categories.

However, the company’s Q1 2026 guidance of $600 million to $625 million fell short of analyst expectations around $653 million. Management attributed a $65 million headwind to regulatory changes impacting compounded semaglutide shipping and availability. Full-year 2026 revenue guidance of $2.7 billion to $2.9 billion aligned with or slightly topped consensus of $2.74 billion, while adjusted EBITDA is projected at $300 million to $375 million (margin of 11-13%).

The miss on Q1 guidance overshadowed the beat, with analysts and investors focusing on the near-term impact of compounding restrictions. Hims & Hers vowed to maintain its 2030 revenue target of more than $6.5 billion, emphasizing growth in personalized non-weight-loss offerings, overseas expansion, and subscriber retention through AI-driven care.

BTIG Research downgraded the stock from Buy to Neutral on February 24, citing the regulatory pressure and softer short-term outlook. Other firms maintained cautious stances, though some bulls argue the pullback creates an attractive entry given long-term tailwinds in telehealth and personalized medicine. Consensus price targets range widely from the high $20s to $60+, with an average around $27-33 (implying significant upside from current levels for believers).

Hims & Hers has built a strong position in direct-to-consumer health, offering treatments for sexual health, hair loss, mental health, dermatology, and weight management via telehealth consultations and compounded medications. The GLP-1 weight-loss category drove rapid growth in 2025, but regulatory scrutiny on compounded versions of drugs like semaglutide (used in Ozempic/Wegovy) has introduced uncertainty.

The company continues to scale its platform, with 65% of users now receiving personalized care and revenue per subscriber rising 11% to $83. Balance sheet strength remains a positive: operating cash flow reached $300 million in 2025, with liquidity over $900 million and no significant debt.

The stock’s sharp decline reflects a classic growth-to-value rotation, where high-multiple names face pressure when near-term visibility softens. Despite the pullback, Hims & Hers maintains a forward-looking narrative centered on digital health innovation, subscriber loyalty, and expansion into new categories and markets.

Investors await further clarity on regulatory outcomes for compounded GLP-1s and progress on international growth. The next earnings report is expected in early May 2026, with focus on Q1 performance and updated 2026 commentary.

Hims & Hers remains a polarizing name: bulls see a scalable, high-margin platform with massive addressable market, while bears highlight regulatory risks, competition, and valuation compression in a tougher macro environment for growth stocks.