Regulatory Scrutiny Overshadows Hims & Hers Quarterly Results

Hims & Hers Q4 earnings beat estimates, but shares tumble after SEC inquiry into compounded semaglutide statements and disappointing revenue guidance for 2026.

Strong quarterly earnings were not enough to satisfy investors this time. While the telemedicine provider Hims & Hers Health reported fourth-quarter figures that beat expectations, a disappointing annual forecast and a new regulatory investigation sent its shares tumbling in after-hours trading.

SEC Inquiry Casts a Shadow

The financial results were nearly upstaged by a significant disclosure in the company's regulatory filing. Hims & Hers confirmed that the Enforcement Division of the U.S. Securities and Exchange Commission (SEC) initiated an inquiry in February. The probe focuses on public statements related to compounded semaglutide medications. The company has been instructed to preserve relevant documents.

Although Hims & Hers states it is cooperating with the agency, the potential financial impact and duration of the proceedings remain uncertain. This regulatory scrutiny arrives at a sensitive juncture for the company. The market for weight-loss medications is under increasing observation, a factor that had already prompted a strategic shift toward more personalized drug combinations.

Forward Guidance Disappoints the Street

From an operational standpoint, the fourth quarter of 2025 showed robust performance. Revenue climbed 28% year-over-year to $617.8 million. Earnings per share came in at 8 cents, surpassing analyst estimates of 5 cents. The subscriber base also expanded by 13%, reaching 2.5 million members.

However, the company's outlook for the coming periods dampened the positive report. Management's revenue guidance for the first quarter of 2026 is set between $600 million and $625 million. This range falls notably short of the consensus estimate of $653.9 million. The combination of soft guidance and the regulatory news prompted a negative reaction; the stock lost over 8% of its value in extended trading, exacerbating an existing downtrend that has seen shares hover near a 52-week low.

For the full fiscal year 2026, the company projects revenue in the range of $2.7 billion to $2.9 billion. This forecast excludes the anticipated acquisition of Eucalyptus, expected to close in mid-2026. It is predicated on the assumption that access to crucial semaglutide active pharmaceutical ingredients will continue despite the current regulatory uncertainty.