Hims & Hers Faces Investor Scrutiny Ahead of Quarterly Earnings

Hims & Hers faces legal investigations and revenue pressure ahead of Q1 earnings. Stock down sharply as it navigates fallout from Novo Nordisk partnership termination.

As Hims & Hers Health, Inc. prepares to release its first-quarter financial results on May 11, the company is navigating a confluence of legal and operational challenges. This difficult transitional period has placed its ambitious annual targets under a microscope, with investors keenly awaiting the upcoming report for signs of stability.

Legal Investigations Compound Existing Pressure

The legal landscape for the telehealth platform has intensified. Law firm Kahn Swick & Foti (KSF) has initiated a probe into whether the company's officers and directors breached their fiduciary duties or violated securities laws. This inquiry adds to existing legal headwinds.

The focal point of these concerns traces back to June 2025, when pharmaceutical giant Novo Nordisk terminated its partnership with Hims & Hers. Novo Nordisk cited violations related to the mass distribution of compounded medications as the reason. Following this development, a securities fraud class action lawsuit was filed. Concurrently, the Schall Law Firm is conducting its own investigation. Investor confidence has been further tested by share sales made by Chief Financial Officer Oluyemi Okupe.

The company's stock currently trades around $19, a significant retreat from its 52-week high of $70.43. While shares briefly rallied to approximately $27 in March following the initial announcement of the Novo Nordisk deal, those gains have largely evaporated. Short interest remains substantial, standing at roughly 83.3 million shares.

Quarterly and Long-Term Targets in Focus

The backdrop for the Q1 earnings release is demanding. Management's revenue guidance for the first quarter of 2026 sits between $600 million and $625 million, which falls below the average analyst expectation of $638 million. Company leadership attributed this forecast primarily to a $65 million headwind caused by changes in the fulfillment process for personalized weight loss medications. The current consensus estimate projects revenue of $621.4 million and earnings per share of just $0.02.

For the full 2026 fiscal year, the company maintains its ambitious outlook, targeting revenue in the range of $2.7 billion to $2.9 billion and adjusted EBITDA of $300 million to $375 million. Its long-term vision aims for $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030. This growth strategy is predicated on investments in artificial intelligence, diagnostic tools, and international expansion—including the planned acquisition of Australian telehealth firm Eucalyptus for up to $1.15 billion.

Divergent Views from Wall Street

Analyst perspectives on the stock are mixed. On March 27, Canaccord Genuity reaffirmed its "Buy" rating with a $30 price target. The firm views the dissolved Novo Nordisk partnership as a long-term growth catalyst, while acknowledging that the transition from compounded drugs to branded products will pressure revenue in the near term. The average rating among 14 covering analysts is a "Hold," with a consensus 12-month price target of $29.33. This implies a potential upside of over 53% from current trading levels.

The May 11 report is expected to quantify the financial impact of the company's ongoing business model transition. Compounding these challenges, Novo Nordisk's late-March launch of discounted direct-to-consumer Wegovy subscriptions has introduced additional pricing pressure across the entire weight-loss telehealth sector.