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Hims $HIMS Earnings Awaited: Post-Partnership Turmoil, Short Interest Surges

Key Takeaways

  • Hims & Hers’ Q2 earnings report is highly anticipated, with investor focus on the fallout and recovery from its terminated partnership with Novo Nordisk.
  • The stock has shown extreme volatility, plunging 35% after the partnership ended in June 2025 before staging a significant recovery, highlighting the speculative nature of its current valuation.
  • Persistently high short interest, reportedly over 30% of the float, creates a volatile situation where the earnings result could trigger either a sharp rally or a steep decline.
  • Key metrics under scrutiny will include subscriber growth in the weight-loss segment, updates on compounded drug supply chains, and any guidance on potential litigation from Novo Nordisk.
  • Analyst sentiment is sharply divided, with Morgan Stanley maintaining an overweight rating while Citi holds a sell rating, underscoring the uncertainty surrounding the company’s long-term strategy.

The anticipation surrounding Hims & Hers Health’s second-quarter earnings report, due after the market close on 4 August 2025, hinges on a narrative of sharp volatility driven by its ill-fated partnership with Novo Nordisk. Investors are keenly focused on whether the company can demonstrate resilience in its weight-loss offerings, following a sequence of dramatic price swings that underscore the risks and opportunities in compounding GLP-1 drugs amid regulatory and competitive pressures.

The Partnership Surge and Sudden Reversal

The initial euphoria from Hims & Hers’ collaboration with Novo Nordisk, announced in late April 2025, propelled the stock to rapid gains, as markets interpreted the deal as a validation of Hims’ strategy to offer affordable alternatives to branded weight-loss treatments like Wegovy. This partnership promised expanded access to semaglutide-based therapies, potentially capturing a slice of the burgeoning demand for GLP-1 agonists. Yet, the alliance unravelled abruptly in June 2025, with Novo Nordisk citing concerns over deceptive marketing and illegal compounding practices. The termination triggered a brutal 35% plunge in Hims shares over a single session, wiping out billions in market value and reigniting debates about the sustainability of Hims’ business model in a landscape dominated by pharmaceutical giants.

Historical price data illustrates the severity: from a pre-termination peak near $72.98 in the 52-week range, the stock cratered, reflecting investor fears of litigation and supply chain disruptions. This episode not only amplified short sellers’ convictions but also highlighted the fragility of partnerships in the competitive GLP-1 market, where Novo Nordisk has faced its own challenges, including a recent 30% drop from its 50-day average price of $69.12 as of 3 August 2025.

Recovery Amid Lingering Doubts

Defying the doomsayers, Hims shares have staged a remarkable rebound, climbing back toward those prior highs with a 17% gain over the past 50 days, closing at $62.55 on 3 August 2025 after a 5.5% intraday decline. This recovery has been fuelled by the company’s defiant stance, including public assertions from leadership that it will continue providing lower-cost compounded options despite the fallout. Trading volumes have surged, averaging over 46 million shares in the past three months, signalling intense investor interest and speculative positioning ahead of the earnings release.

Analysts point to trailing financials as a potential buffer. The stock’s valuation suggests markets are pricing in significant growth potential, though this comes against a backdrop of Novo Nordisk’s own troubles.

Metric Hims & Hers Health (HIMS) Novo Nordisk (NVO)
Share Price (3 Aug 2025) $62.55 N/A (50-day avg: $69.12)
Market Cap $14 billion N/A
EPS (TTM) $0.68 N/A
Forward P/E Ratio N/A (Forward EPS: $0.46) 11.84
Price-to-Book Ratio 25.46 N/A

Short Interest as a Powder Keg

Complicating the outlook is persistently elevated short interest, reportedly exceeding 30% of the float based on recent sentiment from financial platforms like TradingView. This high level of bearish bets indicates scepticism about Hims’ ability to navigate legal overhangs, including potential lawsuits from Novo Nordisk over alleged patent infringements and marketing tactics. Short sellers, emboldened by the June collapse, appear to be wagering on earnings disappointments that could expose vulnerabilities in customer retention or revenue from weight-loss segments.

Sentiment from verified sources remains mixed: Morgan Stanley maintains an overweight rating, citing Hims’ plans for international expansion into markets like Canada by 2026, where generic semaglutide could gain traction post-Novo’s patent expiry. Conversely, Citi has reiterated a sell rating, expressing doubts on growth sustainability amid competitive threats, as noted in their July 2025 analysis. These views amplify the stakes, with model-based forecasts suggesting that a beat on the consensus EPS of $1.04 for the current year could trigger a short squeeze, potentially driving shares beyond the 52-week high of $72.98.

Earnings as the Decisive Catalyst

The upcoming report will likely scrutinise metrics tied directly to the partnership saga, such as subscriber growth in weight-loss categories and any updates on compounded drug supply chains. Investors are particularly attuned to guidance on litigation risks, which could either validate the recovery or reignite downward pressure. Historical patterns show Hims stock reacting negatively to 53% of earnings announcements since 2021, per Trefis analysis, often due to volatility in emerging segments like telehealth-driven pharmaceuticals.

Comparisons with prior quarters reveal a trajectory of improvement: the first quarter of 2025 delivered EPS of $0.20, surpassing estimates by 67%, driven by robust demand for personalised treatments. Should the second quarter echo this strength, with revenue potentially aligning to analyst expectations around expansion in non-branded GLP-1s, it might affirm the “next leg” upward. However, any hint of regulatory scrutiny or softened demand could embolden shorts, especially given Novo Nordisk’s recent earnings miss on 29 July 2025, which dragged its shares down 21% pre-market and indirectly pressured Hims.

In this context, the market’s wait-and-see posture reflects a broader tension in the sector, where innovative disruptors like Hims challenge incumbents but face outsized risks from partnerships that promise much yet deliver instability. As of the latest session close on 3 August 2025, with Hims’ market cap at $14 billion and shares trading at a 63% premium to their 200-day average of $38.39, the earnings outcome stands as a pivotal test of whether the recovery is built on solid foundations or mere speculation.

Data as of 3 August 2025, 13:40 UTC. Sources include TipRanks, Benzinga, TradingView, and Investing.com for earnings previews and sentiment.


References

  • Amit, C. (2025, August 2). Hims & Hers Health (HIMS) Is About To Report Q2 Earnings: Here’s What To Expect. TipRanks. Retrieved August 3, 2025, from https://www.tipranks.com/news/hims-hers-health-hims-is-about-to-report-q2-earnings-heres-what-to-expect
  • Benzinga Insights. (2025, August 3). Hims & Hers Health Earnings Preview. Benzinga. Retrieved August 3, 2025, from https://benzinga.com/insights/earnings/25/08/46798028/hims-hers-health-earnings-preview
  • BFA Law. (2025, July 29). HIMS INVESTOR REMINDER: Hims & Hers Health, Inc. Stock Drop…. Morningstar. Retrieved August 3, 2025, from https://www.morningstar.com/news/globe-newswire/9504392/hims-investor-reminder-hims-hers-health-inc-stock-drop-leads-to-class-action-investors-with-losses-urged-to-contact-bfa-law-by-august-25-nysehims
  • Dividend Dude (@DividendDude_X). (2025, July 31). Novo Nordisk $NVO reported earnings before the bell… [Post]. X. https://x.com/DividendDude_X/status/1938036546021495124
  • Hims & Hers (@himshouse). (2025, July 29). Access to high-quality, effective treatments for weight loss… [Post]. X. https://x.com/himshouse/status/1937243712763113822
  • Investing.com. (2025, August 2). Soleil Boughton, Hims & Hers Health CLO, Sells $150K in Stock. Retrieved August 3, 2025, from https://investing.com/news/insider-trading-news/soleil-boughton-hims–hers-health-clo-sells-150k-in-stock-93CH-4158558
  • Investing.com. (2025, August 1). Hims & Hers reports 10.3% weight loss in customers using GLP-1 treatments. Retrieved August 3, 2025, from https://investing.com/news/company-news/hims–hers-reports-103-weight-loss-in-customers-using-glp1-treatments-93CH-4157855
  • MarketBeat. (2025, July 29). Will Hims & Hers Fall Along With Novo Nordisk?. TradingView. Retrieved August 3, 2025, from https://www.tradingview.com/news/marketbeat:7e9a46f2e094b:0-will-hims-hers-fall-along-with-novo-nordisk/
  • MVC Investing (@mvcinvesting). (2025, July 1). Hims & Hers Health Inc $HIMS stock is down -34.8%… [Post]. X. https://x.com/mvcinvesting/status/1917221924406694234
  • Trefis Team. (2025, August 1). How Will Hims & Hers Health Stock React To Its Upcoming Earnings?. Trefis. Retrieved August 3, 2025, from https://trefis.com/stock/hims/articles/571408/how-will-hims-hers-health-stock-react-to-its-upcoming-earnings/2025-08-01
  • TrendSpider (@TrendSpider). (2025, July 1). $HIMS: -34.84% in a single day… [Post]. X. https://x.com/TrendSpider/status/1917190409232765404
  • TrendSpider (@TrendSpider). (2025, July 29). $NVO: -21.49% Pre-Market… [Post]. X. https://x.com/TrendSpider/status/1937118740308770877
  • Unusual Whales (@unusual_whales). (2025, July 29). Hims & Hers Health, $HIMS, has seen a lot of recent activity… [Post]. X. https://x.com/unusual_whales/status/1937262135782126066
  • Wall St Engine (@wallstengine). (2025, July 30). Short interest on $HIMS is reportedly over 30%… [Post]. X. https://x.com/wallstengine/status/1937633311951847730
  • Zacks Equity Research. (2025, August 1). Hims & Hers Stock to Report Q2 Earnings: What’s in the Cards?. TradingView. Retrieved August 3, 2025, from https://tradingview.com/news/zacks:74d7628ab094b:0-hims-hers-stock-to-report-q2-earnings-what-s-in-the-cards
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