What Happened?
Shares of telehealth company Hims & Hers Health (NYSE: HIMS) jumped 6.9% in the morning session after the company reported third-quarter 2025 results that showed strong revenue growth, even as its profit and future guidance fell short of expectations.
The telehealth company's sales increased by 49.2% from the previous year to $599 million, beating analysts' forecasts. This growth was driven by high demand for its personalized care, new specialty service launches, and an expanding international reach. However, the report also contained weaker points. The company's profit of $0.06 per share was below what analysts had predicted. Furthermore, its revenue guidance for the next quarter of $615 million was also slightly below market estimates. Despite these mixed signals, investors seemed to focus on the strong top-line sales performance.
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What Is The Market Telling Us
Hims & Hers Health’s shares are extremely volatile and have had 98 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 3.4% on the news that JPMorgan Chase & Co. disclosed in a regulatory filing that it had taken a significant passive stake in the company. The major financial institution reported owning 17.8 million Class A shares, representing an 8.1% stake in the telehealth provider. According to the filing, the shares were acquired in the ordinary course of business and not with the purpose of changing or influencing the control of the company. Such a large investment by a major institution often signals confidence to the market. The news also arrived as investors awaited the company's third-quarter earnings report. Adding to the positive sentiment, Hims & Hers recently announced plans to expand into the booming weight-loss drug market with its own GLP-1 treatments.
Hims & Hers Health is up 80.8% since the beginning of the year, but at $45.56 per share, it is still trading 33.7% below its 52-week high of $68.74 from February 2025. Investors who bought $1,000 worth of Hims & Hers Health’s shares 5 years ago would now be looking at an investment worth $4,489.
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