NEW YORK, July 29, 2026, 2:59 p.m. EDT
- Hims traded at $25.83, down 11.9%. Its preliminary market-value loss approached $800 million.
- First-quarter customer-acquisition costs consumed 31.7% of revenue.
- Second-quarter results are due August 10, after the closing bell.
Hims & Hers Health fell 11.9% to $25.83 in the latest available trade. The decline followed a government lawsuit covering privacy, billing and subscription practices. U.S. markets remained open, leaving the final close unsettled.
The move erased roughly $800 million of market value, based on a preliminary estimate. The scale suggests concern beyond a one-time legal expense.
Hims spent $192.8 million on customer acquisition during the first quarter. That equaled 31.7% of revenue. Total marketing expense reached $222.0 million, or 36.5%.
The company linked 9% subscriber growth to increased traffic generated by marketing. Subscribers reached 2.584 million. Monthly revenue per average subscriber fell 6% to $80.
Chief Executive Andrew Dudum described the platform in May as offering “personal, data-driven care.” The lawsuit places the handling of that data under direct scrutiny. SEC
The FTC alleged Hims shared customer lists and website-event data with Meta Platforms NASDAQ:META, Snap NYSE:SNAP and other advertising platforms. It said consumers had been promised privacy.
Hims called the claims baseless and promised to defend itself. It said the case was “not enforcement grounded in consumer protection.” Christopher Mufarrige, the FTC’s consumer-protection director, said the agency would act for consumers denied meaningful choice. Reuters
The complaint also alleges charges shortly after customers submitted intake forms. The FTC said most consumers received no provider consultation before enrollment. It also alleged hard-to-find cancellation controls.
| Intraday comparison | Price | Session move |
|---|---|---|
| Hims & Hers Health NYSE:HIMS | $25.83 | -11.9% |
| Teladoc Health NYSE:TDOC | $9.36 | -0.1% |
| LifeMD NASDAQ:LFMD | $3.74 | -2.6% |
| American Well (NYSE:AMWL) | $11.07 | -0.2% |
Prices are preliminary intraday readings.
The peer gap indicates company-specific repricing rather than a broad telehealth retreat. That conclusion is an inference from intraday prices, which may change.
Hims had already warned that tighter data rules could weaken targeted advertising. Its filing said tracking-related claims might force operational changes or discontinued marketing strategies.
The next operating test comes August 10. Hims has guided for second-quarter revenue between $680 million and $700 million. Adjusted EBITDA guidance stands at $35 million to $55 million.
Risks run both ways. The court could reject the allegations, and the case remains pending. An injunction, penalties or reputational damage could still raise acquisition costs and weaken retention.
Investors will now watch acquisition costs, cancellations and revenue per subscriber. Those measures could reveal an economic impact before any court judgment.
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