WATCH LIVE: Kennedy, Rollins make announcement about Trump's 'Make America Healthy Again' effort
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Yahoo
11 minutes ago
- Yahoo
Hims & Hers Health (NYSE:HIMS) Misses Q2 Revenue Estimates, Stock Drops 12%
Telehealth company Hims & Hers Health (NYSE:HIMS) fell short of the market's revenue expectations in Q2 CY2025, but sales rose 72.6% year on year to $544.8 million. On the other hand, the company expects next quarter's revenue to be around $580 million, close to analysts' estimates. Its GAAP profit of $0.17 per share was 13% above analysts' consensus estimates. Is now the time to buy Hims & Hers Health? Find out in our full research report. Hims & Hers Health (HIMS) Q2 CY2025 Highlights: Revenue: $544.8 million vs analyst estimates of $550.8 million (72.6% year-on-year growth, 1.1% miss) EPS (GAAP): $0.17 vs analyst estimates of $0.15 (13% beat) Adjusted EBITDA: $82.24 million vs analyst estimates of $72.2 million (15.1% margin, 13.9% beat) The company reconfirmed its revenue guidance for the full year of $2.35 billion at the midpoint EBITDA guidance for the full year is $315 million at the midpoint, below analyst estimates of $319.4 million Operating Margin: 4.9%, up from 3.5% in the same quarter last year Free Cash Flow was -$69.43 million, down from $47.57 million in the same quarter last year Customers: 2.44 million, up from 2.37 million in the previous quarter Market Capitalization: $14 billion 'It's never been more clear that we are delivering exactly what millions of people have been waiting for: access to personalized, high-quality care that meets people where they are. From the momentum of our business to the results our customers are achieving, we are more confident than ever that our model is helping people optimize their health and realize the benefits of precision medicine,' said Andrew Dudum, co-founder and CEO. Company Overview Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE:HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Hims & Hers Health grew its sales at an incredible 78.1% compounded annual growth rate. Its growth surpassed the average healthcare company and shows its offerings resonate with customers, a great starting point for our analysis. Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Hims & Hers Health's annualized revenue growth of 68.3% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. We can better understand the company's revenue dynamics by analyzing its number of customers, which reached 2.44 million in the latest quarter. Over the last two years, Hims & Hers Health's customer base averaged 43.3% year-on-year growth. Because this number is lower than its revenue growth, we can see the average customer spent more money each year on the company's products and services. This quarter, Hims & Hers Health achieved a magnificent 72.6% year-on-year revenue growth rate, but its $544.8 million of revenue fell short of Wall Street's lofty estimates. Company management is currently guiding for a 44.4% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 28.5% over the next 12 months, a deceleration versus the last two years. Still, this projection is healthy and indicates the market sees success for its products and services. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating Margin Although Hims & Hers Health was profitable this quarter from an operational perspective, it's generally struggled over a longer time period. Its expensive cost structure has contributed to an average operating margin of negative 1.7% over the last five years. Unprofitable healthcare companies require extra attention because they could get caught swimming naked when the tide goes out. On the plus side, Hims & Hers Health's operating margin rose by 43.9 percentage points over the last five years, as its sales growth gave it operating leverage. Zooming in on its more recent performance, we can see the company's trajectory is intact as its margin has also increased by 13.6 percentage points on a two-year basis. These data points are very encouraging and show momentum is on its side. In Q2, Hims & Hers Health generated an operating margin profit margin of 4.9%, up 1.4 percentage points year on year. This increase was a welcome development and shows it was more efficient. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Hims & Hers Health's full-year EPS flipped from negative to positive over the last five years. This is a good sign and shows it's at an inflection point. In Q2, Hims & Hers Health reported EPS at $0.17, up from $0.06 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Hims & Hers Health's full-year EPS of $0.80 to grow 4.4%. Key Takeaways from Hims & Hers Health's Q2 Results We enjoyed seeing Hims & Hers Health beat analysts' EPS expectations this quarter. We were also happy its customer base narrowly outperformed Wall Street's estimates. On the other hand, its EBITDA guidance for next quarter missed and its revenue fell slightly short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 12% to $55.84 immediately after reporting. Should you buy the stock or not? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
11 minutes ago
- Yahoo
NYC air quality worsens again amid Canadian wildfire haze
NEW YORK — Hazy skies and low air quality returned to the five boroughs on Monday, as smoke from Canadian wildfires again created a gray scene in the New York skies. All of New York state and almost all of New England was under an air quality alert from the National Weather Service on Monday afternoon. The warning for New York City extended until midnight. 'Air quality is unhealthy for sensitive groups, including older adults, children, and people with heart or lung conditions,' NYC's emergency department wrote on social media. 'You may notice a faint smell of smoke, and low visibility conditions.' It has become a depressingly familiar story for New Yorkers in recent years. Smoke from uncontrolled wildfires in Canada, most of them in the province of Manitoba, has been carried south and east by common wind patterns. The worst air quality in recent years occurred in June 2023, when the smoke became so thick it created an orange haze over the city. However, the subpar air quality has returned to the city in each of the past two summers as well, including multiple times earlier this year. 'Limit outdoor activity, close windows, use air purifiers if available, and consider wearing a high-quality mask if you must go outside and are in a sensitive group,' NYC Emergency Management warned. New York was hardly alone in dealing with poor air quality on Monday. All of Maine, New Hampshire, Massachusetts, Rhode Island, Connecticut and Delaware, along with the majority of Vermont were also under air quality alerts. _____
The Hill
13 minutes ago
- The Hill
RFK Jr. ‘reviewing' ouster of preventive task force members
Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. said Monday he is 'reviewing' whether to remove all members of an influential advisory committee that offers guidance about preventive health services. The U.S. Preventive Services Task Force is composed of medical experts who serve four-year terms on a volunteer basis. They are appointed by the HHS secretary and are supposed to be shielded from political influence. The task force reviews reams of scientific evidence to make recommendations on services such as cancer screenings, HIV prevention medications and more. It makes its recommendations using a grading scale, and ObamaCare requires insurers to cover services the task force recommends with a 'grade' of A or B at no cost to patients. The Wall Street Journal first reported late last month that Kennedy was considering firing the panelists because they were too 'woke.' During a press conference about the Supplemental Nutrition Assistance Program (SNAP), Kennedy did not deny that removing the members of the task force was under consideration. 'The task force has done very little over the past five years, and we want to make sure it is performing, and it is approving interventions that are actually going to prevent the health decline of the American public. And it hasn't,' he said. 'We're looking at the personnel and we're making the decision now, but no decision has been made.' Kennedy's office abruptly postponed the July meeting of the task force, alarming some Democrats and public health leaders. The discussion on removing the entire task force comes on the heels of a Supreme Court decision in June originally focused on a recommendation to cover certain HIV-prevention drugs. The ruling asserted Kennedy has the power to hire and dismiss panelists at will, as well as to potentially delay or veto the recommendations they issue — something no prior administration has done.
