HIMS Stock Today, February 24: EPS Beat, Weak 2026 Guide Weighs on Shares
HIMS stock is under pressure today after Hims & Hers posted Q4 results with revenue in line, but a GAAP EPS and adjusted EBITDA beat. The company set Q1 2026 revenue and full‑year EBITDA guidance below consensus, citing softer margins and weaker free cash flow. Customer growth improved modestly, yet investors want more proof on profitability and cash generation into 2026. Shares of HIMS now trade well below key moving averages, making guidance execution the next major driver.
Q4 results: EPS and EBITDA beat, revenue in line
Hims earnings landed as revenue matched expectations while GAAP EPS and adjusted EBITDA beat. Management highlighted continued demand across wellness, sexual health, skincare, and hair. The company confirmed trends in recurring prescriptions and direct‑to‑consumer traffic. Full details are available in the company’s press release source. Despite the beat, guidance commentary overshadowed the quarter and weighed on HIMS stock.
Trailing metrics show a 75.0% gross margin and a 5.2% operating margin, with a 6.1% net margin. Price-to-sales sits near 1.53 and EV/EBITDA around 26.5, signaling investors still price in growth. Stock‑based compensation to revenue is 5.7%, and R&D intensity is 6.0%. These figures frame why execution on margins now matters more than top‑line beats.
2026 guidance underwhelms and resets expectations
Management guided Q1 2026 revenue and full‑year EBITDA below Street estimates, turning focus from growth to profitability. Barron’s noted the cautious tone as a key reason for the selloff source. For HIMS stock, the near‑term debate shifts to margin durability, marketing efficiency, and contribution profit by cohort.
Free cash flow per share is 0.58, with a price‑to‑FCF ratio near 25.7 and a trailing FCF yield about 3.9%. Capex-to-revenue is roughly 8.8%, implying ongoing platform and logistics spend. Cash per share is 2.78, and the quick ratio is 1.64. The guide suggests FCF may soften near term, making working capital efficiency a key lever.
Market reaction and technical picture
HIMS stock faces selling as guidance misses temper growth hopes. Volume recently ran above average, a sign of conviction among short‑term traders. The analyst mix shows 4 Buys, 12 Holds, and 10 Sells, with a Hold‑leaning consensus. Valuation screens mid‑pack for growth healthcare at a 26.1x P/E and 1.53x sales, leaving limited room for execution slippage.
Momentum is weak with RSI near 15.9 and Money Flow Index near 8.5, both oversold. ADX around 58.9 points to a strong downtrend. Price sits well below the 50‑day near 29.39 and 200‑day near 45.04. Bollinger lower band is near 10.52, and ATR of 1.80 signals elevated volatility into upcoming updates.
What we are watching into 2026
Management cited incremental customer growth, but the market now wants stronger retention data and higher recurring revenue quality. We will watch mix shift across wellness, sexual health, skincare, and hair. Cross‑sell and subscription stickiness matter, along with churn and order frequency. Clear commentary on unit economics by cohort could help rebuild confidence in HIMS stock.
Return on equity is 24.7%, but debt‑to‑equity is about 1.92 and net debt to EBITDA near 4.9, so deleveraging via FCF matters. Operating cash flow per share is 1.44, yet FCF conversion sits near 40%. Risks include competition, marketing efficiency, and pricing. Consistent margin gains would be a key re‑rating catalyst for HIMS stock.
Final Thoughts
Hims & Hers delivered a clean Q4 on revenue, with GAAP EPS and adjusted EBITDA ahead of expectations. The issue is the 2026 guidance. Lower Q1 revenue and full‑year EBITDA targets, plus softer margins and free cash flow, shift attention to execution. For HIMS stock, the setup is a tug of war between strong brand momentum and a demanding profit path. Short‑term traders face oversold conditions with a strong downtrend, so risk control is vital. Long‑term investors should focus on unit economics, marketing payback, and FCF expansion. If management lifts margins and restores cash generation, valuation at roughly 1.5x sales and 26x earnings could find support. Until then, updates on guidance and retention trends will drive HIMS stock into 2026.
FAQs
Why did HIMS stock fall after earnings?
Despite a GAAP EPS and adjusted EBITDA beat, management guided Q1 2026 revenue and full‑year EBITDA below consensus. The market shifted focus to margins and free cash flow, which management expects to be weaker near term. That reset in expectations outweighed the quarterly beats and pressured HIMS stock.
Is HIMS stock a buy after the drop?
It depends on time horizon and risk tolerance. Valuation near 1.5x sales and 26x earnings is not stretched for growth, but execution risk rose with the softer 2026 guidance. Oversold signals suggest potential trading bounces, yet the strong downtrend argues for patience and staged entries.
What in the 2026 guidance concerned investors most?
Management outlined Q1 2026 revenue and full‑year EBITDA below Street estimates, paired with softer margins and weaker free cash flow. Investors now want clearer evidence of improving unit economics, efficient marketing spend, and sustained contribution margins that can support healthy cash generation through 2026.
Which metrics should investors track next for Hims & Hers?
Watch revenue growth quality, customer adds, retention, and subscription mix. Track gross margin, operating margin, and adjusted EBITDA. Monitor operating cash flow, free cash flow, and working capital efficiency. Technicals like RSI, price vs moving averages, and volume trends can also help gauge near‑term sentiment for HIMS stock.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.