HIMS
New trouble, same ticker tape
Hims & Hers woke up to a very un-fun headline: Reuters says the FTC is preparing a lawsuit accusing the telehealth company of sharing sensitive health data with advertisers and using deceptive billing practices. That’s the kind of allegation that makes investors clutch their coffee a little harder.
Why this one stings
According to the report, the FTC says patient information may have been funneled to digital ad firms — with Meta and Snap named as examples — through website tracking tools and user interactions. If that sticks, the issue isn’t just a fine; it’s a trust problem for a company that sells convenience and privacy as part of the brand.
The billing part is messy too
The agency also reportedly plans to argue that Hims charged people before they even talked to a medical professional and made cancellations annoyingly difficult. In other words: not exactly the kind of customer journey you’d put on a billboard.
The stock-market backdrop
There was already plenty for investors to chew on. Hims reported a first-quarter loss of 40 cents a share and revenue of $608.1 million, both below expectations, even as it guided second-quarter revenue above Wall Street estimates. So now you’ve got a business trying to pitch growth while simultaneously fielding a lawsuit about how it treats users.
Big picture: if the FTC’s case gains traction, this could become a slower-burn overhang on Hims — the kind that doesn’t just ding sentiment today, but hangs around like a bad sequel.