Is Hims & Hers Health Stock in Trouble?

Hims & Hers Health (NYSE: HIMS) has been a hot growth stock to own in recent years. In 2024, it surged by 172%, and in 2025, it finished the year up 34%. But it's been struggling of late and is down significantly from its highs.

Recently, there's also been troubling news with the Federal Trade Commission (FTC) alleging that the telehealth company shared customer health information without consent. Things appear to be going from bad to worse for Hims & Hers Health. Is now the time to dump the stock, or could it be a good time to buy while its value is so low?

Image source: Getty Images.

Company dismisses "baseless" allegations

The FTC claims that Hims & Hers shared customer information without their consent on third-party platforms. However, Hims & Hers Health challenges the accusations, calling them "baseless" and noting that its privacy policy outlines how customer information is handled and managed.

While Hims & Hers stock initially fell when the news came out, the stock has gone on to recover since then. The privacy issues are concerning, but it's debatable how much of an impact they may have on the business or its long-term growth prospects. Sharing data, especially in an increasingly digital world, is something many companies struggle to strike a healthy balance on.

The bigger problem is the slowing growth

Privacy issues may have caused a momentary dip for the healthcare stock, but broader problems with the company's overall growth have been weighing it down for much longer. While the telehealth company has been expanding into new markets, its growth rate has been volatile and cratered to 4% recently.

HIMS Revenue (Quarterly YoY Growth) data by YCharts

The company has also incurred an operating loss totaling $31 million over the trailing 12 months. Its aggressive growth strategy has made it a hot stock to own in the past, but it can make for a highly volatile investment overall. While Hims may continue to pursue other opportunities to grow its business, investors will want to see that it can do so in a profitable way.

Without some greater predictability and stability in the company's overall earnings and growth, I'd avoid the stock. At around $7 billion in market cap, its valuation still isn't all that light as it trades at close to 60 times its estimated future earnings (based on analyst expectations).

Hims & Hers stock may be down significantly from its high, but it could still have plenty of room to fall even lower.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hims & Hers Health. The Motley Fool has a disclosure policy.