Hims & Hers Health (NASDAQ: HIMS) has had among the worst runs of any public company over the last year. And, there is little reason to think it will recover. The stock is down 47% in the previous year, and 29% so far this year. Buyers need to beware that they are not catching a falling knife. Matters are worse for people who bought the stock in the middle of last year when its performance was “hot.”
The company describes itself: “Hims & Hers is the leading health and wellness platform on a mission to help the world feel great through the power of better health.” It sells popular drugs at a discount as its primary business. This includes drugs for weight loss, hair loss (regrowth), and menopause. Prescriptions are provided online through what it calls “a team of medical specialists.” Each drug it provides is FDA approved, and each is provided by a licensed provider. Customers can also get complete blood tests.
The formula would seem ideal in an age when people live online. Hims & Hers claims 2.5 million subscribers. The formula worked until it didn’t. In the third quarter of last year, revenue rose 49% year over year. Net income crashed 79% to $16 million.
One blow to Hims & Hers shares was a major miss on its Q3 numbers. Analysts gave several reasons. One was that the prices of the company’s products were rising. The company also provided no solid argument that things would get better.
The situation was grim enough that a month ago, Bank of America reduced its rating on the stock to “underperform” and lowered its target price to $29 from $32. The stock was clobbered by another Wall St. call. According to Reuters, “Citi reported on January 5, 2026, that the corporation was once more left off of Novo Nordisk’s partner list for the Wegovy weight loss pill’s U.S. launch. It also includes CVS Health, Costco, LifeMD, and GoodRx.” Among the reasons for the cut was that Hims & Hers GLP-1 business would be hurt. Citi kept its $30 price target and its “sell” rating.
Matters have worsened for the company recently. Hims & Hers ended the launch of its $49 compounded version of Novo Nordisk’s (NYSE: NVO) Wegovy weight-loss pill. The FDA threatened to take legal action against the company. The New York Times reported, “Hims & Hers, a major online provider of obesity medications, said on Saturday that it would stop selling a cheap knockoff version of Novo Nordisk’s new pill version of its popular weight loss drug Wegovy, bowing to pressure from federal regulators who suggested the product might be illegal.” Novo Nordisk also threatened a lawsuit.
Hims & Hers is a perfect example of a company that got out over its skis. It believed that its business model was so good that it could push a legal envelope. It is hard to make the case that management was completely ignorant of the risk when it decided to sell a “knock-off” drug. Either its decision would be ignored, or it would fight to support it. It has tangled with the FDA before because of its business practices.
Hims & Hers stock has dropped below $20. Based on its current challenges, it is hard to say it will recover soon.
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