Hims & Hers Health Inc. (HIMS) experienced a pre-market plunge of 5.87% on Monday, extending a multi-session selloff.
The sustained downside pressure follows the company's disappointing first-quarter results, which revealed an unexpected net loss of $92 million compared to $50 million a year ago, translating to a per-share loss of $0.40 versus analyst expectations for a profit. Revenue of $608 million also missed Wall Street estimates, with Americas revenue declining 8% year-over-year.
Additionally, the company's strategic pivot away from higher-margin compounded GLP-1 medications toward branded products at lower margins continues to weigh on sentiment. Concurrently, Hims & Hers announced a proposed $300 million convertible senior notes offering with a $45 million upsize option, with proceeds intended to support international expansion, the Eucalyptus acquisition, and technology and AI investments, which may have contributed to the downward pressure.