e.l.f. Beauty stock plummets 20% as revenue and guidance fall short of expectations
Investing.com - Truist Securities has reiterated its Hold rating and $37.00 price target on Hims & Hers (NYSE:HIMS) following the company’s third-quarter 2025 earnings report that showed mixed results.
The healthcare company reported third-quarter results that slightly exceeded Truist’s expectations, with a $19 million revenue beat compared to the analyst’s anticipated $10 million beat. Despite this positive performance, Hims & Hers narrowed its 2025 revenue guidance, lowering it by $5 million at the midpoint.
The company’s fourth-quarter outlook for both revenue and adjusted EBITDA fell below consensus estimates. Management attributed a $20-$25 million revenue headwind in Q4 to the migration of sterile weight-loss fulfillment to 503A facilities and shorter shipping cadences, which reduce revenue recognized per shipment.
Hims & Hers reported that deferred revenues increased by $20 million sequentially to $118.5 million at the end of Q3, with Truist estimating most of this deferred revenue is related to the GLP-1 business and the majority will be recognized in Q4. The company is no longer disclosing specific figures or metrics around its GLP-1 business.
In its earnings release, Hims & Hers disclosed it is in active discussions with Novo Nordisk (NYSE:NVO) to make Wegovy injections and Novo Nordisk’s oral Wegovy (pending FDA approval) available through the Hims & Hers platform, news that Truist believes drove the positive after-market share price reaction.
In other recent news, Hims and Hers reported third-quarter results that surpassed analyst expectations, with revenue, EBITDA, and EPS beating estimates by 3%, 15%, and 30%, respectively. Despite this positive performance, the company’s fourth-quarter guidance did not meet consensus estimates, leading to mixed reactions from investors. Jefferies responded by lowering its price target for Hims and Hers to $48 while maintaining a Hold rating, citing changes in GLP pricing. Meanwhile, Leerink Partners raised its price target to $46, highlighting a solid quarter for the company despite challenges related to dosing and shipping locations.
BofA Securities also adjusted its price target upward to $32, although it maintained an Underperform rating, noting that while revenue and EBITDA exceeded expectations, subscriber numbers fell short. The Sexual Health business was identified as a weak point, with BofA expecting this trend to continue into early 2026. KeyBanc Capital Markets reiterated its Sector Weight rating, describing Hims and Hers as a "2H26 story" amid ongoing transitions affecting subscriber growth. Needham maintained its Hold rating, expressing concerns about the impact of near-term investments despite the company’s expansion plans. These developments reflect a range of perspectives on the company’s current and future performance.
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