Hims & Hers Health Inc. (NYSE: HIMS) fell 12.36% to $55.52, with volume spiking to nearly 104 million shares--more than twice its three-month average. The stock now trades nearly 24% below its recent high, despite growing second-quarter revenue 73% year over year to $544.8 million. That figure fell just short of analyst expectations, triggering a sharp sell-off.
The company posted net income of $42.5 million, beating forecasts, and more than doubled adjusted EBITDA to $82.2 million. Subscribers rose 31% to 2.4 million, and average monthly revenue per user grew 30% to $74.
Peers were mixed: Teladoc Health (NYSE: TDOC) edged down 0.14%, while Option Care Health (NASDAQ: OPCH) fell 0.6%. Investors showed relative caution across digital health, though Hims' premium valuation at a P/E of 81 and negative free cash flow appeared to amplify downside pressure.
Despite the drop, management reaffirmed full-year guidance and highlighted future expansion into hormone health, diagnostics, and longevity services. Some analysts remain optimistic, though the quarter may test short-term confidence.
Market data sourced from Google Finance and Yahoo! Finance on Tuesday, August 5, 2025.
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Daily Stock News has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hims & Hers Health and Teladoc Health. The Motley Fool has a disclosure policy.