Hims & Hers shares tumble 18% as margin miss adds to concerns about GLP-1 business

Core Insights - Hims & Hers Health shares fell 18% in after-hours trading despite reporting better-than-expected revenue and earnings, primarily due to disappointing gross margins [1][2] - The company's revenue increased by 95% year-over-year in Q4, reaching $246.6 million [1] - Gross margin was reported at 77$1.2 billion, surpassing the previous 2025 revenue target a year early [5] - Net income increased to $26.01 million, or 11 cents per share, compared to$1.25 million, or 1 cent per share, a year earlier [6] - Adjusted earnings were reported at 54.1 million, meeting analyst estimates [6] Future Outlook - For Q1, Hims & Hers anticipates revenue between 520 million to $540 million, exceeding analyst expectations of$497 million [6] - Adjusted earnings for the same period are projected to be between $55 million to$65 million [6] Market Context - The company experienced a significant stock drop of 26% following the FDA's announcement regarding the resolution of semaglutide injection product shortages [2] - Hims & Hers has been a standout in the digital health sector, particularly due to its weight loss offerings, with stock climbing approximately 200% for the year [3]