Hims & Hers Stock Slips Despite Q4 Earnings Beat, Margins Contract

Hims & Hers Health, Inc. HIMS came out with quarterly earnings per share (EPS) of 7 cents in fourth-quarter 2025, compared with the year-ago period’s EPS of 11 cents. However, the figure compares with the Zacks Consensus Estimate of 2 cents.

Full-year EPS was 51 cents, reflecting a 3.8% decrease from the year-ago period. However, the figure topped the Zacks Consensus Estimate by 6.3%.

HIMS’ Revenues in Detail

Hims & Hers registered revenues of $617.8 million in the fourth quarter, up 28.4% year over year. However, the figure lagged the Zacks Consensus Estimate by 0.2%.

Solid revenues from the Online channel drove the top line.

Full-year revenues were $2.35 billion, reflecting a 58.9% improvement from the year-ago period. The metric was in line with the Zacks Consensus Estimate.

Shares of this company lost nearly 6.3% in today’s pre-market trading.

Hims & Hers’ Geographical Results

In the fourth quarter of 2025, revenues in the United States improved 16.8% year over year to $554.1 million.

Rest of the World revenues grossed $63.7 million, up from the year-ago quarter’s $6.9 million.

HIMS’ Segment Details

Hims & Hers’ operations consist of two channels — Online Revenues and Wholesale Revenues.

In the quarter under review, Online Revenues of $609.1 million reflected a surge of 29.4% year over year on a reported basis.

During the reported quarter, subscribers were 2.5 million, up 12.7% year over year.
Monthly online revenue per average subscriber increased 10.7% year over year to $83 in the fourth quarter. Per management, incremental insights and data from new offerings, like Labs, will likely enable HIMS to better attract potential consumers for treatments across newer specialties, such as hormonal support. The company believes this will increase subscriber engagement and have already seen early success signals with the increase in monthly revenue per average subscriber.

Wholesale Revenues totaled $8.7 million, down 16.1% year over year.

Hims & Hers Health, Inc. Price, Consensus and EPS Surprise

Hims & Hers Health, Inc. price-consensus-eps-surprise-chart | Hims & Hers Health, Inc. Quote

Hims & Hers’ Margin Analysis

In the fourth quarter of 2025, Hims & Hers’ gross profit increased 20.3% year over year to $444.4 million. However, the gross margin contracted 487 basis points (bps) to 71.9%.

Marketing expenses increased 7.7% year over year to $238 million, while technology and development expenses jumped 72.5% year over year to $40.9 million. General and administrative expenses rose 58.6% year over year to $76.2 million, while operations and support expenses increased 37.9% year over year to $80.1 million. Operating expenses of $435.2 million increased 24% year over year.

Operating profit totaled $9.2 million, reflecting a 50.6% plunge from the year-ago quarter. The operating margin in the fourth quarter contracted 238 bps to 1.5%.

HIMS’ Financial Position

Hims & Hers exited 2025 with cash and cash equivalents and short-term investments of $577.5 million compared with $300.3 million at the end of 2024.

Cumulative net cash provided by operating activities at the end of 2025 was $300 million compared with $251.1 million a year ago.

Hims & Hers’ Outlook

Hims & Hers has provided its revenue outlook for the first quarter and initiated the same for 2026.

The company projects revenues for the first quarter of 2026 in the range of $600 million to $625 million, reflecting an uptick of 2%-7% year over year. The Zacks Consensus Estimate is pegged at $645.3 million.

For the full year, HIMS projects revenues in the range of $2.7 billion to $2.9 billion (representing growth of 15%-24% from 2025 levels). The Zacks Consensus Estimate is pegged at $2.73 billion.

Our Take on HIMS

Hims & Hers exited fourth-quarter 2025 with better-than-expected earnings. The robust improvement in the top line and strength in Online revenues and revenues from both the geographic regions in the quarter were promising. The increase in subscribers and monthly online revenue per average subscriber during the quarter was encouraging.

This month, Hims & Hers entered into a definitive agreement to acquire Eucalyptus, a consumer healthcare player with operations in Australia, the U.K. and Germany, with expanding new operations in Japan and Canada. This will likely accelerate its ability to bring access to personalized care to more people across the world.

In February, HIMS launched some notable offerings like Galleri (a cancer screening blood test that can detect a signal for more than 50 types of cancer), while it launched Labs for customers to understand their overall health and identify ways to improve and maintain it (in November 2025). These raise our optimism about the stock.

However, Hims & Hers’ lower-than-expected revenues and dismal bottom-line results in the quarter were disappointing. Lower revenues from the Wholesale channel were also reported. The contraction of both margins during the quarter does not bode well for the stock.

Hims & Hers’ Zacks Rank and Stocks to Consider

Hims & Hers currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space that have announced quarterly results are Cardinal Health, Inc. CAH, GE HealthCare Technologies Inc. GEHC and McKesson Corporation MCK.

Cardinal Health, carrying a Zacks Rank of 2 (Buy), reported second-quarter fiscal 2026 adjusted EPS of $2.63, beating the Zacks Consensus Estimate by 9.9%. Revenues of $65.63 billion outpaced the consensus mark by 0.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cardinal Health has a long-term estimated growth rate of 15%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.3%.

GE HealthCare reported fourth-quarter 2025 adjusted EPS of $1.44, beating the Zacks Consensus Estimate by 1%. Revenues of $5.69 billion surpassed the Zacks Consensus Estimate by 1.9%. It currently carries a Zacks Rank #2.

GE HealthCare has a long-term estimated growth rate of 9.1%. GEHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.5%.

McKesson reported third-quarter fiscal 2026 adjusted EPS of $9.34, beating the Zacks Consensus Estimate by 0.4%. Revenues of $106.16 billion surpassed the Zacks Consensus Estimate by 0.5%. It currently caries a Zacks Rank #2.

McKesson has a long-term estimated growth rate of 15.9%. MCK’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.6%.

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This article originally published on Zacks Investment Research (zacks.com).

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