Can Hims & Hers Stock Fall 30%?

For questions about this article or underlying research, email help@trefis.com.

Shares of Hims & Hers Health (HIMS) lost 42.8% over the past year, while the S&P 500 returned 15.0%. Another 30% fall would fit a historical pattern. During all five market shocks the stock has traded through, it dropped more than 30% from a high to a later low. Shareholders hoping the worst is over need the stock to hold up better during a shock, and the company to start generating cash again. So how did those falls compare with the market’s, and how long did the shares stay down?

Did Hims & Hers Stock Hold Up In Shocks?

No. Hims & Hers shares have fallen further than the S&P 500 in every one of those shocks. The deepest decline occurred during the 2025 US tariff shock, when the stock lost 63.0% while the S&P 500 lost 19.0%. Measured from the first day of each shock to the lowest close, the shares dropped 37.0% on average, compared with 13.4% for the index.

The stock returned to its pre-fall high following four of these shocks. Recovery took a median of 2.6 months after reaching the low, with the slowest rebound requiring 8.1 months following the 2023 regional banking crisis. The shares have yet to recover from the tariff shock. On October 27, 2026, the stock closed 59.4% below its February 19, 2025 high.

Is Hims & Hers Still Turning Sales Into Cash?

Not in the latest quarter. Hims & Hers spent more cash running its business than it collected during the June quarter of fiscal 2026, after taking in more than it spent in the March quarter. Management said on the August 10, 2026 call that operating cash flow paused because the rapidly expanding branded weight loss offering required more working capital.

Sales continued to grow in the June quarter, rising 38.2% from a year earlier, but margins moved the opposite direction. Gross margin fell to 63.8%, down from 76.4% the previous year. The company recorded an operating loss equal to 12.9% of sales in each of the last two quarters, after Hims & Hers reported an operating profit margin of 4.9% in the June quarter of fiscal 2025.

Hims & Hers ended June with more debt than cash and short-term investments, whereas cash exceeded debt a year earlier. The company’s debt equals 23.9% of its market value, compared with 19.4% for the S&P 500.

Hims & Hers Faces Profit And Regulatory Pressure

Management currently expects less adjusted profit for fiscal 2026 than it projected in May, despite anticipating higher sales. On August 10, 2026, executives raised the midpoint of their annual sales forecast by about 10%, but lowered the adjusted EBITDA projection by about 4%. Management also said gross margins will remain below past levels as branded weight loss products and international sales make up a larger portion of the business.

Regulatory and legal scrutiny is also pressuring the business. The FTC filed a complaint against Hims & Hers on July 29, 2026. Management said the company will defend the case vigorously; the June-quarter loss included legal accruals tied to the litigation. The company and some of its executives also face a securities class action that stems from the FTC complaint. A news report on September 1, 2026, said Hims & Hers shares fell 3.2% after the FDA warned telehealth companies and compounding pharmacies about unapproved weight loss drugs.

Hims & Hers is expected to report its third quarter in November 2026. Free cash flow, which management expects the company to start generating again in the second half of the year, is the number to watch.

Does This Mean You Should Act On HIMS?

Our purpose is to inform you with unique data so you make the right investment decisions. That said, betting on a single stock is always risky, no matter which direction you choose.

There is a smarter approach. Since its inception, the Trefis High Quality (HQ) Portfolio has returned 105%, beating the benchmark that combines the three major indices – the S&P 500, S&P Mid-cap, and Russell 2000. And it did so without taking the concentrated risk that comes with do-it-yourself stock picking. If that is how you want to invest, the HQ Portfolio is the place to start.

Spot an error or want more like this? Tell us in 10 seconds.