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Hims & Hers Health saw its stock drop nearly 10% in after-hours trading on Monday, following the release of its second-quarter earnings report, which missed Wall Street’s revenue expectations—even as the company posted significant growth in both revenue and profit.

Q2 2025 Earnings Snapshot: Profits Soar, Revenue Falls Short

Here’s how the telehealth company performed compared to analysts’ expectations (per LSEG):

• Adjusted EPS: 17 cents (vs. 15 cents expected)
• Revenue: $544.8 million (vs. $552 million expected)

Despite the revenue miss, the company’s top line still surged 73% year-over-year, up from $315.6 million in Q2 2024.

Net income also climbed substantially to $42.5 million (or 17 cents per share), up from $13.3 million (or 6 cents per share) in the same quarter last year.

Strong EBITDA Growth Impresses Investors

Hims & Hers reported adjusted EBITDA of $82 million for the second quarter—more than double the $39.3 million it posted a year ago and well above the $73 million forecast by analysts polled by StreetAccount.

This sharp rise in profitability is a bright spot in an otherwise mixed quarter.

Q3 Guidance Falls Below Wall Street Expectations

Looking ahead, the company projected:

• Q3 revenue between $570 million and $590 million, versus analysts’ expectation of $583 million
• Adjusted EBITDA guidance of $60 million to $70 million, falling short of the $77.1 million consensus

This conservative outlook has raised concerns among investors, especially following recent regulatory scrutiny.

Ongoing Controversy: Compounded GLP-1 Medications

A cloud continues to hang over the company due to its role in distributing compounded GLP-1 medications—unapproved versions of blockbuster diabetes and weight-loss drugs like Wegovy and Ozempic.

While the FDA announced in February 2025 that the supply shortage for these branded medications had been resolved, some telehealth companies—including Hims & Hers—have continued offering compounded alternatives.

Hims & Hers has defended its approach, arguing that personalized prescriptions can still be offered when clinically appropriate, such as for patients with allergies to specific ingredients in branded formulations.

However, regulatory backlash has already caused financial turbulence. In June 2025, the company's stock plummeted over 30% after pharmaceutical giant Novo Nordisk severed ties. The drugmaker alleged that Hims & Hers violated federal laws by selling compounded drugs “under the false guise” of individual personalization.

A Rapidly Expanding Business in a Challenging Environment

Despite these headwinds, the company’s financial growth remains undeniable:

• Revenue increased 73% YoY to $544.8 million
• Net income more than tripled to $42.5 million
• Adjusted EBITDA doubled to $82 million

The company is scheduled to hold its Q2 earnings call with investors at 5 p.m. ET, where more insights into its future strategy and response to regulatory concerns are expected.

Investors Cautious Despite Profit Surge

While Hims & Hers is clearly growing at a rapid pace, the combination of a revenue miss, softer-than-expected guidance, and ongoing legal scrutiny surrounding its compounded drug offerings has created a volatile environment for shareholders.

Whether the company can continue scaling while navigating these legal and ethical challenges will be critical to watch in the coming quarters.