Hims & Hers: Upcoming Earnings to Test Business Model’s Strength

The market's initial enthusiasm for Hims & Hers Health's latest strategic move proved fleeting. On Wednesday, the company announced the integration of the Galleri multi-cancer early detection test into its platform, a significant expansion of its product portfolio capable of screening for over 50 cancers. While the news prompted a positive opening, with shares beginning the session at $27.20 after a prior close of $25.54, the rally quickly lost momentum. Trading volume surged as the stock reversed course, declining through the day to settle around the $25 mark.

This investor skepticism underscores the central question facing the telehealth provider: can its growth initiatives translate into sustainable profitability? The upcoming quarterly report, scheduled for release after the market closes on Monday, February 23, 2026, is widely seen as a critical test.

Introducing new product lines such as the Galleri test or controversial GLP-1 weight-loss medications requires substantial investment. The partnership with GRAIL, while broadening the company's offerings, does not guarantee these ventures will be financially accretive. Analysts have expressed caution; TD Cowen, for instance, reduced its price target from $48 to $37 in early January, citing valuation risks.

Further clouding the outlook is regulatory scrutiny. In late 2025, the U.S. Food and Drug Administration (FDA) issued a warning concerning the marketing of GLP-1 drugs for weight loss—a key growth segment for Hims & Hers. The agency criticized promotional practices it said blurred the lines between approved and unapproved uses of the medications.

Should investors sell immediately? Or is it worth buying Hims & Hers?

Investor sentiment was also likely influenced by a notable insider transaction. The company's Chief Financial Officer, Oluyemi Okupe, executed a sale of shares on January 21, a move that was filed as a routine disclosure.

Key Metrics for the February 23 Earnings Report

When Hims & Hers discloses its Q4 and full-year 2025 results, market participants will focus on three primary areas to assess the health of the business model:

• Customer Economics: Is user growth being achieved sustainably? Scrutiny will fall on customer acquisition costs and their trajectory.
• Financial Health: What impact are new, capital-intensive products having on overall margins and profitability?
• Forward Guidance: What revenue forecast does management provide for 2026, and does it reflect confidence in the expanded portfolio?

The earnings release will ultimately reveal whether the company's broader product suite is beginning to deliver the anticipated returns or if profitability remains under pressure. Until then, the stock appears to be consolidating near the psychologically significant $25 level.