Markets

Hims & Hers Stock Plunges 8%, Wiping Out $539 Million, On Class Action Deadline Day

Shares fell 8.35% to $25.37 in Monday trading as the lead-plaintiff deadline hit in a securities suit over health-data sharing.

Hims & Hers Health, which runs a telehealth platform, saw its shares fall 8.35% to $25.37 in Monday trading, as of 3:51 p.m. ET, erasing $539 million in market value. The drop came on the deadline for investors to seek lead-plaintiff status in a securities class action tied to the Federal Trade Commission's July lawsuit over health-data sharing.

A deadline day, with no company news

With no company announcement behind the move, the slide landed on the day law firms were pressing investors to step forward. Notices went out Sunday and again Monday. The stock was on pace for its biggest one-day drop since August 28.

The suit covers investors who bought Hims securities between August 4, 2025 and July 29, 2026. It alleges the company shared consumers' health information with third-party advertising platforms.

The complaint cites the FTC's July 29 lawsuit against Hims. The stock fell 14.73% to close at $25.00 that day, according to a law firm notice.

Growth with a net loss

Hims connects customers with licensed providers who can prescribe treatments for conditions such as sexual health, hair loss and weight loss, and fills most prescriptions through its own pharmacies. Its second-quarter revenue rose 38% to $753.2 million, but it posted a net loss of $86.3 million, against net income of $42.5 million a year earlier. Gross margin was 64%, down from 76%.

The company raised its 2026 revenue guidance to a range of $3.1 billion to $3.3 billion. Subscribers reached nearly 2.9 million, up 19%.

Shares were down about 15% year to date as of Friday's close, while the S&P 500 was up about 11%. The stock stood 39% below its highest close of the past year, set October 31, 2025.

Hims is scheduled to report third-quarter results on Monday, November 9.