Hims & Hers Misses on EPS and Revenue, Stock Falls 11.9 Percent

Hims & Hers Health reported quarterly earnings per share (EPS, the portion of profit assigned to each share) of $0.03 on Monday, missing the analyst consensus of $0.06 by $0.03, according to FiscalAI. Revenue of $890.37 million also fell short of the $892.88 million analysts had modeled. The market rendered its verdict without delay: the stock dropped $3.10, or 11.9 percent, to $22.90 by midday.

The shortfall sits atop weak profitability metrics. The company posted a negative net margin (net profit as a share of revenue) of 5.51 percent and a negative return on equity of 6.51 percent. Both figures confirm the telehealth operator is still spending more than it earns on each dollar of sales. That is a familiar condition for growth-stage platforms, though less familiar for ones trading at a $5.34 billion market capitalization.

How did the market digest the numbers?

Trading volume on Monday reached 48,022,495 shares, more than double the average of 22,224,598. The shares now sit well below the 50-day moving average of $28.43 and the 200-day moving average of $26.94, and far from the 52-week high of $42.70. The 52-week low stands at $13.74.

The balance sheet and valuation metrics, as compiled in the report:

• Quick ratio (a measure of near-term liquidity excluding inventory) of 0.87
• Current ratio (current assets over current liabilities) of 0.93
• Debt-to-equity ratio of 4.21, a notably leveraged position
• Price-to-earnings ratio of -36.34, negative because the company loses money
• Beta (sensitivity to market swings) of 2.53, roughly two and a half times the market

A quick ratio below 1.00 with heavy leverage is not a comfortable combination. It is, however, survivable while revenue keeps compounding.

What do the analysts say?

Five brokerages adjusted their targets in August, and the direction was upward even as the ratings stayed lukewarm:

• TD Cowen raised its target from $25.00 to $30.00 with a hold rating (August 11)
• Needham & Company lifted its objective from $35.00 to $42.00 with a buy rating (August 11)
• Morgan Stanley increased its target from $21.00 to $28.00 with an equal weight rating (August 11)
• Bank of America moved from $30.00 to $32.00 with a neutral rating (August 11)
• Barclays trimmed its target from $39.00 to $35.00 but kept an overweight rating (August 21)

The aggregate picture, per MarketBeat.com data, is a consensus rating of Hold with an average price target of $32.43, drawn from three buy ratings, eleven holds and one sell. Wall Street, in short, raised the floor while refusing to cheer.

What are insiders doing?

Insider activity adds a quiet footnote. Soleil Boughton sold 3,462 shares on October 28 at an average of $27.60, totaling $95,551.20, leaving 293,886 shares worth $8,111,253.60. CFO Oluyemi Okupe sold 2,000 shares on October 1 at $29.70, for $59,400.00, retaining 234,527 shares worth $6,965,451.90. Both transactions were executed under pre-arranged Rule 10b5-1 trading plans, which allow insiders to schedule sales in advance to avoid accusations of trading on private information.

Over the past 90 days, insiders have sold 133,905 shares worth $3,826,977. Insiders still own 11.76 percent of the company, so the sales represent trimming rather than exit.

Who is Hims & Hers, exactly?

Founded in 2017, the company runs a consumer-focused telehealth platform connecting patients with licensed providers for online consultations, prescription care and over-the-counter products. Its coverage spans hair loss, sexual health, skin care, mental health, weight management and primary care, with offerings varying by location and eligibility. The Hims brand launched first, with Hers following to widen the audience.

The verdict: an earnings miss, an 11.9 percent sell-off and a Wall Street consensus content to wait. Nothing here is fatal; nothing here is persuasive either.