As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at healthcare technology stocks, starting with Hims & Hers Health (NYSE: HIMS).
Healthcare Technology
The 8 healthcare technology stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Hims & Hers Health (NYSE: HIMS)
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.
Hims & Hers Health reported revenues of $544.8 million, up 72.6% year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but EBITDA guidance for next quarter missing analysts’ expectations significantly.
“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.
Hims & Hers Health achieved the fastest revenue growth of the whole group. The company added 73,000 customers to reach a total of 2.44 million. Still, the market seems discontent with the results. The stock is down 7.7% since reporting and currently trades at $43.97.
Is now the time to buy Hims & Hers Health? Access our full analysis of the earnings results here, it’s free.
Best Q2: Privia Health (NASDAQ: PRVA)
Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ: PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models.
Privia Health reported revenues of $521.2 million, up 23.4% year on year, outperforming analysts’ expectations by 10.9%. The business had a very strong quarter with a solid beat of analysts’ sales volume estimates and a beat of analysts’ EPS estimates.
Privia Health delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 7.7% since reporting. It currently trades at $21.33.
Is now the time to buy Privia Health? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: GoodRx (NASDAQ: GDRX)
Started in 2011 to tackle the problem of high prescription drug costs in America, GoodRx (NASDAQ: GDRX) operates a digital platform that helps consumers find lower prices on prescription medications through price comparison tools and discount codes.
GoodRx reported revenues of $203.1 million, up 1.2% year on year, falling short of analysts’ expectations by 1.3%. It was a disappointing quarter as it posted EPS in line with analysts’ estimates and a significant miss of analysts’ customer base estimates.
Interestingly, the stock is up 2% since the results and currently trades at $4.43.
Read our full analysis of GoodRx’s results here.
Astrana Health (NASDAQ: ASTH)
Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ: ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models.
Astrana Health reported revenues of $654.8 million, up 34.7% year on year. This print topped analysts’ expectations by 2.7%. It was a strong quarter as it also put up a beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations.
The stock is up 38.9% since reporting and currently trades at $29.80.
Read our full, actionable report on Astrana Health here, it’s free.
Tandem Diabetes (NASDAQ: TNDM)
With technology that automatically adjusts insulin delivery based on continuous glucose monitoring data, Tandem Diabetes Care (NASDAQ: TNDM) develops and manufactures automated insulin delivery systems that help people with diabetes manage their blood glucose levels.
Tandem Diabetes reported revenues of $240.7 million, up 8.5% year on year. This number surpassed analysts’ expectations by 1.5%. Taking a step back, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates and a significant miss of analysts’ sales volume estimates.
The stock is down 23.9% since reporting and currently trades at $11.
Read our full, actionable report on Tandem Diabetes here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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