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Hims & Hers shares cut losses after second-quarter results
The telehealth company reported a $0.37 per share loss, compared with a $0.17 profit a year earlier, alongside a one-time $81 million cost.
Hims & Hers Health shares pared earlier losses after the telehealth company posted second-quarter results, with the stock down about 3% before trimming losses on Tuesday. Yahoo Finance attributed the volatility to swings in profitability and margin performance.
In the quarter, Hims & Hers swung to a loss of $0.37 per share from a profit of $0.17 in the prior year period. Gross margins were 64%, down from 76% a year earlier, and results were pressured by a one-time $81 million cost tied to acquisition-related expenses for the Australian digital health company Eucalyptus.
The company also cited restructuring costs linked to its shift in weight-loss strategy earlier this year, plus legal reserves connected to litigation with the Federal Trade Commission. Yahoo Finance said the FTC has alleged the company shared private health data with advertisers Meta and Snap and made subscription cancellations difficult.
Hims & Hers rejected the FTC allegations and said it plans to fight the case. During the earnings call, CFO Yemi Okupe said the company is confident in its position and intends to defend it vigorously.