Hims & Hers Health (HIMS) reported strong Q2 results, with earnings and EBITDA beating estimates and revenue up 73% YoY. However, the stock dropped -13% after hours due to soft Q3 guidance and ongoing FDA concerns surrounding compounded GLP-1 weight-loss drugs. Despite regulatory headwinds, HIMS remains one of GAR Capital’s top 10 stocks of 2025. The long-term growth story remains bullish, but volatility could continue in the short term.

💊 Hims & Hers Health: Guidance Miss Sends Shares Lower, but the Story’s Not Over

Hims & Hers Health (HIMS) — one of GAR Capital’s Top 10 Stocks of 2025 — took a breather after a strong year, falling -13% after hours following Q2 earnings and soft guidance for Q3.

Even with the drop, the stock is still +175% year-to-date, starting 2025 near $20 and now trading around $55.

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Q2 2025 Earnings Recap

• EPS (Adjusted): $0.17 vs. $0.15 expected ✅
• Revenue: $544.8M vs. $552M expected ❌
• Adjusted EBITDA: $82M vs. $73M expected ✅
• Net Income: $42.5M ($0.17/share) vs. $13.3M ($0.06/share) a year ago
• Revenue Growth: +73% YoY → $315.6M → $544.8M

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Q3 2025 Guidance

• Revenue: $570M–$590M vs. $583M expected
• Adjusted EBITDA: $60M–$70M vs. $77.1M expected ❌

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Key Headlines & Controversy

• Ongoing FDA scrutiny over compounded GLP-1 weight-loss drugs (unapproved versions of popular treatments like Ozempic/Wegovy)
• FDA says shortages are over, limiting the legal use case for compounded versions
• June sell-off (-30%) after short-lived Novo Nordisk partnership collapse over alleged violations
• Company maintains it will still provide personalized doses in applicable clinical situations

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Stock Technicals & Outlook

• Short-Term Resistance: $67
• Key Support: $45 (uptrend line)
• If $45 holds, oversold bounce trade potential is on the table
• This pullback comes after a massive run-up — from $20 in January to $67 recent highs (+235% peak gain before earnings)

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GAR Capital Take 💡

HIMS has been one of our biggest winners in 2025 and still sits firmly in our Top 10 Stock Picks.

Yes, Q3 guidance disappointed and the GLP-1 headlines add noise, but the growth story is intact with revenue up +73% YoY and profitability improving sharply.

For long-term holders: this looks more like a shakeout than the end of the trend.
For traders: we’re watching $45 support closely for a potential high-reward bounce entry.

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Bottom line:

✅ +175% YTD performance despite this pullback
✅ Strong revenue growth & profitability improvements
⚠️ Regulatory headwinds and guidance miss = near-term volatility
💎 Long-term story still bullish, but ideal buys come on weakness