Hims & Hers Health shares tumbled 10.2% to $30.32 in morning trading on Thursday, extending losses after Visa placed the company under enhanced monitoring due to elevated credit card chargebacks.
The telehealth provider’s shares hit a session low of $30.30, well below its 52-week high of $65.30. The decline followed a Bloomberg report detailing Visa’s decision to enroll Hims & Hers in its Acquirer Monitoring Program, a move triggered by chargeback rates exceeding acceptable thresholds in July. The company is expected to incur a $75,000 fine in September as a result.
Barclays downgraded its price target on Hims & Hers to $35 from $39 on Thursday, citing ongoing regulatory and operational pressures. The investment bank’s adjustment came as the broader market slipped, with the Nasdaq down 1.0% and the S&P 500 declining 0.4%.
Regulatory scrutiny deepened after the U.S. Federal Trade Commission filed a lawsuit against Hims & Hers on July 29, alleging improper sharing of users’ sensitive health data with third-party advertising platforms and deceptive subscription billing practices. The lawsuit adds to investor concerns over the company’s compliance framework.
Hims & Hers reported Q2 2026 revenue of $753 million, a 38% year-over-year increase, but gross margins compressed sharply from 76% to 64%. Adjusted EBITDA projections for Q3 fell short of Wall Street expectations, while free cash flow remained deeply negative. Analysts noted the challenges in the company’s weight-loss subscription segment, particularly GLP-1 treatments, amid intensifying competition from Amazon’s One Medical platform.
The stock’s decline reflects mounting headwinds, including regulatory fines, legal risks, and margin pressure, despite revenue growth.
