Hims & Hers Shares Drop 7% After Q2 Loss Blows Past Estimates Despite Revenue Beat and Raised Guidance

Hims & Hers Health reported second-quarter revenue of $753.2 million, up 38% year over year and well ahead of the roughly $699 million analysts had expected, while also raising its full-year revenue outlook. Despite those positives, shares fell nearly 7% in premarket trading Tuesday to around $29.54 after the company posted a net loss of 37 cents per share for the quarter, far worse than the 1-cent loss analysts had forecast. Profitability was squeezed by heavy investment in branded GLP-1 weight-loss treatments and international expansion, plus restructuring charges tied to the shift away from compounded semaglutide toward branded options.

Gross margin fell roughly 12 percentage points year over year to 64%, and the company cut its EBITDA guidance again. Evercore flagged the "receding profit outlook" as a key concern even as it acknowledged accelerating U.S. revenue growth of 16% year over year and a record 300,000 net subscriber additions in the quarter. A bullish analyst cited by Benzinga argued the spending is necessary for long-term incremental growth.

Law firm Kaplan Fox also announced an investigation into potential securities law violations related to the results.