Hims & Hers’ expansion plans — as well as its Super Bowl ad — have investors worried about profits

MarketWatch

by Bill Peters

February 24, 2026

AI-Generated Deep Dive Summary

Hims & Hers shares dropped sharply after hours following its first-quarter earnings report, which missed Wall Street expectations. The decline was attributed to heavy spending on a Super Bowl ad and investments in new technology and products, raising concerns among investors about profitability. HIMS stock fell as much as 8.8% in extended trading, signaling growing investor anxiety over the company’s financial strategy. The wellness platform, known for its telehealth services and direct-to-consumer marketing, has been expanding rapidly. However, its aggressive spending on brand visibility, including a costly Super Bowl ad, has come under scrutiny. Additionally, Hims & Hers is navigating increased legal and regulatory attention regarding its weight-loss drug business, which adds another layer of risk to its operations. Investors are closely watching whether these investments will pay off in the long term or if they could harm the company’s bottom line. The stock price drop reflects broader market skepticism about Hims & Hers’ ability to balance growth with profitability, particularly amid rising costs and regulatory challenges. This situation highlights the delicate balance companies must strike between investing in expansion and maintaining investor confidence. For finance-focused readers, this story underscores the importance of aligning spending strategies with financial expectations, especially in high-growth industries. The potential long-term benefits of Hims & Hers’ investments could offset short-term pains, but investors are demanding clear evidence of a return on investment. This case also serves as a cautionary tale about the risks of overextending in highly competitive markets. Overall, Hims & Hers’ current trajectory raises critical questions about its ability to sustain growth while managing expenses and navigating legal hurdles. The outcome will not only impact the company’s future but also set an example for other startups looking to scale quickly in the wellness and telehealth spaces.

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Originally published on MarketWatch on 2/24/2026