Hims & Hers Health (HIMS) Fell Due to Increased Regulatory Challenges

Core Insights - Maple Tree Capital's Q3 2025 performance was mixed, with the Jonagold portfolio experiencing a 13.12% loss due to a decline in Upstart, while the Heartwood portfolio gained 40.2%, significantly outperforming the S&P 500's 82% return since its inception in 2023 [1] Group 1: Company Performance - Hims & Hers Health, Inc. (NYSE:HIMS) reported a 49% year-over-year revenue increase, reaching nearly $600 million, with adjusted EBITDA margins exceeding 13% [4] - The stock of Hims & Hers Health, Inc. closed at $34.10 per share on December 29, 2025, with a market capitalization of $7.763 billion [2] Group 2: Investment Decisions - Maple Tree Capital sold its position in Hims & Hers Health, Inc. due to increased regulatory risks and concerns about the stability of its core telehealth business, reallocating funds into Upstart [3] - The decision to sell Hims & Hers was made after the stock was sold near $52, with the firm believing that this trade would enhance long-term performance despite an unfavorable initial impact [3] Group 3: Market Sentiment - Hims & Hers Health, Inc. is not among the 30 most popular stocks among hedge funds, although it saw an increase in hedge fund portfolios holding its stock from 34 to 35 in the third quarter [4] - The firm believes that certain AI stocks present greater upside potential and carry less downside risk compared to Hims & Hers Health, Inc. [4]