Hims Stock Falls After Earnings Miss as Doximity Draws Investor Attention
Hims Stock Falls After Earnings Miss as Doximity Draws Investor Attention
Hims & Hers Health is facing fresh investor scrutiny after a weak quarterly report, insider stock sales, and concerns about the company’s growth quality. According to 24/7 Wall St., Hims reported a major earnings miss for Q1 2026, while rival healthcare platform Doximity showed stronger profitability and steadier business fundamentals.
Hims Faces Pressure After Disappointing Q1 Results
Hims & Hers, known for its direct-to-consumer telehealth services, reported earnings per share of -$0.40, compared with analyst expectations of $0.03. That marked a sharp miss and raised concerns about the company’s ability to turn rapid revenue growth into sustainable profits.
The company also posted a net loss of $92.11 million, a major reversal from the profit it reported a year earlier. Its gross margin declined from 73% to 65%, while adjusted EBITDA margin fell to just 7%. These figures suggest that rising costs, pricing pressure, and changes in product demand are weighing on the business.
Insider Selling Adds to Investor Concerns
Another issue attracting attention is insider selling. The report noted that CEO Andrew Dudum sold 436,190 shares before the earnings release. Other senior executives also reportedly sold shares in the weeks before the quarterly results became public.
Insider selling does not always mean a company is in trouble. Executives may sell shares for tax planning, diversification, or personal financial reasons. Still, when large stock sales happen before a disappointing earnings report, investors often view the timing as a warning sign.
Why Doximity Looks More Attractive
While Hims is struggling with profitability, Doximity is being highlighted as a stronger healthcare technology stock. Doximity operates a professional network and workflow platform for U.S. physicians. It serves doctors, medical professionals, and healthcare companies rather than relying mainly on consumer subscription demand.
Doximity reported $185.05 million in revenue, up 9.8% year over year. More importantly, it generated $61.56 million in net income and posted a very strong adjusted EBITDA margin of 60.2%. That level of profitability gives the company more flexibility to invest, buy back stock, and withstand market volatility.
AI Tools Strengthen Doximity’s Platform
Doximity is also gaining attention for its artificial intelligence tools, including products designed to help doctors with documentation and workflow tasks. The company has more than 1 million quarterly active prescribers and over 300,000 AI product users, according to the report.
This matters because healthcare professionals tend to value tools that save time and reduce administrative work. If Doximity can keep doctors engaged, it may build a stronger long-term moat than consumer-focused telehealth companies that depend heavily on marketing and subscription retention.
Balance Sheet and Capital Discipline Matter
Another key difference is capital discipline. Hims has faced concerns about debt, margins, and stock-based compensation. Doximity, meanwhile, has authorized a $500 million share repurchase program, signaling confidence in its cash flow and financial position.
For investors, the comparison is clear: Hims may still offer growth potential, but that growth now comes with higher risk. Doximity appears slower-growing, yet more profitable, more stable, and better positioned for long-term healthcare technology demand.
Investor Takeaway
The latest earnings season has created a sharp contrast between two healthcare technology companies. Hims remains a well-known consumer brand, but its earnings miss, margin pressure, insider selling, and debt concerns have made investors more cautious.
Doximity, on the other hand, is showing consistent profits, strong physician engagement, and growing AI adoption. For investors seeking a healthcare technology stock with stronger fundamentals, Doximity may deserve closer attention.
Important note: This article is for informational purposes only and is not financial advice. Investors should research carefully and consider their own risk tolerance before buying or selling any stock.
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