Hims & Hers Shares Drop 12% on Q1 Earnings Miss

Hims & Hers Health shares plunged more than 12 percent in morning trading Tuesday after the telehealth company reported first-quarter results that missed Wall Street expectations, including a wider net loss and revenue short of forecasts.

The company, known for direct-to-consumer treatments in areas such as weight loss, hair care and sexual health, posted revenue of $608 million for the three months ended March 31, a 4 percent increase from the prior year but below analyst estimates of about $617 million. It recorded a net loss of $92 million, or 40 cents per share, compared with a loss of $50 million, or 20 cents per share, a year earlier. Analysts had anticipated a small profit of around 4 cents per share. Adjusted EBITDA fell to $44 million from $91 million in the year-ago period.

Subscribers grew 9 percent to nearly 2.6 million, though average revenue per subscriber declined to $80 from $85, signaling softer spending per user. Chief Financial Officer Yemi Okupe attributed the shortfall to a strategic shift in the quarter toward branded GLP-1 weight-loss drugs from major manufacturers like Novo Nordisk and Eli Lilly. This pivot included $33.5 million in restructuring charges...