Hims & Hers Health Stock Is Sliding Thursday: What's Going On?

Hims & Hers Health Inc HIMS shares are falling Thursday morning after the company announced a proposed convertible senior notes offering.

What Happened: Hims & Hers Health announced plans on Thursday to offer $450 million worth of convertible senior notes due 2030 in a private offering to institutional investors. The company also expects to grant the initial purchasers a 13-day window to purchase up to an additional $67.5 million of the notes.

Hims & Hers Health intends to use the proceeds to help accelerate global expansion through organic growth and strategic acquisitions, as well as for general corporate purposes. The proceeds will also help support the company’s technology team to expand its data pipeline, develop AI tools and advance personalized treatments, improving the consumer healthcare experience.

Hims & Hers Health announced that it appointed Mo Elshenawy to lead technology at the company. As the new chief technology officer, Elshenawy will help accelerate the company’s vision to build a next-generation healthcare platform powered by AI.

“The future of care connects diagnosis, treatment, and delivery seamlessly, and in a way that feels tailored to the individual. We believe AI is an important way to standardize high-quality care globally to millions of people, regardless of their income or where they live,” said Andrew Dudum, CEO and co-founder of Hims & Hers.

“Our ambition to build a platform that offers access to safe, high-quality personalized care requires an accelerated investment in technology, and Mo is just the leader to drive that work.”

Hims & Hers Health shares have been trending higher this week after the company reported better-than-expected financial results for the first quarter after the market close on Monday.

Total revenue jumped 111% on a year-over-year basis as subscribers grew to 2.4 million in the quarter, up 38% year-over-year. 

Hims & Hers Health guided for second-quarter revenue of $530 million to $550 million versus estimates of $564.56 million. The company said it continues to expect full-year 2025 revenue in the range of $2.3 billion to $2.4 billion versus estimates of $2.32 billion, according to Benzinga Pro.

"We're starting 2025 with incredible momentum. Millions of people are turning to us for access to care that is personal, affordable, and has the potential to drive better outcomes," Dudum said earlier this week.

HIMS Price Action: Hims & Hers Health shares were down 1.41% at $51.53 at the time of publication Thursday, according to Benzinga Pro.

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Photo: Lori Butcher/Shutterstock.