Forget Hims. Its CEO Dumped 436,000 Shares Before a 1,266% Earnings Miss. Here Is the Profitable Healthcare Stock to Own Instead

Hims & Hers reported a weak Q1 2026 with EPS of -$0.40 versus a $0.03 consensus and a net loss of $92.11 million, down from net income a year earlier. GAAP gross margin fell to 65% from 73%, and adjusted EBITDA dropped to a 7% margin. The U.S. business declined 8% year over year, and shares fell 14.1% on the day, ending a 54.66% one-year decline. Valuation remains high with trailing P/E of 57 and forward P/E of 67, while operating margin is -12.9%. Total liabilities rose 431% year over year to $1.82 billion, including about $1 billion of convertible debt. Doximity is presented as a rotation opportunity due to real profits, with fiscal Q3 2026 revenue of $185.05 million and adjusted EBITDA margin of 60.2%, plus expanding platform engagement across prescribers, workflow users, and AI product users.

"EPS came in at -$0.40 against a $0.03 consensus, a 1,266% miss, with a net loss of $92.11 million versus net income of $49.48 million a year earlier. GAAP gross margin compressed to 65% from 73%, and adjusted EBITDA collapsed to a 7% margin. The U.S. business, the actual core, shrank 8% year over year. Shares fell 14.1% on the day to $25.03, capping a 54.66% one-year decline."

"Even after the fall, Hims trades at a trailing P/E of 57 and a forward P/E of 67, with an operating margin of -12.9%. Total liabilities ballooned 431% year over year to $1.82 billion, freighted with roughly $1 billion of convertible debt. The C-suite has voted with its feet: CEO Andrew Dudum disposed of 436,190 shares at $24.77 on April 13, and the CFO, COO, and Chief Legal Officer all dumped stock in the weeks before the earnings release."

"Fiscal Q3 2026, reported February 5, 2026, delivered revenue of $185.05 million, up 9.8% year over year, with adjusted EBITDA of $111.40 million at a 60.2% margin and net income of $61.56 million. Compare that 60% margin to the 7% Hims just posted while burning $33 million on GLP-1 restructuring."

"Doximity now serves over 1 million quarterly active prescribers, 720,000 workflow users, and 300,000-plus AI product users, with AI Scribe and DoxGPT growing 50% quarter over quarter"

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