Hims & Hers Health Inc. shares slumped 10.2% to $30.32 in early trading on Thursday, extending losses after a Bloomberg report highlighted a payment dispute with Visa Inc.
The telehealth provider was enrolled in Visa’s Acquirer Monitoring Program following a surge in credit card disputes tied to its weight-loss subscription business in July, according to the report published on August 21. The company now faces a penalty of approximately $75,000 scheduled for September.
Barclays reduced its price target on Hims & Hers to $35 from $39 on the same day, citing concerns over billing and cancellation practices. The downgrade follows the firm’s Q2 2026 earnings report, which showed gross margins compressing to 64%, down from 76% a year earlier, alongside deeply negative free cash flow.
Revenue for the quarter rose 38% year-over-year to $753 million, though Q3 adjusted EBITDA guidance fell short of Wall Street expectations. The company also disclosed a July 29 lawsuit from the Federal Trade Commission alleging improper sharing of sensitive user health data with third-party advertising platforms and problematic subscription billing practices.
Market context showed broader declines, with the Nasdaq falling 1.0% and the S&P 500 down 0.4% on the day of the report. The pressure on Hims & Hers coincides with Amazon’s expansion into weight management through its One Medical platform, intensifying competition in the sector.
