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 (NYSE:HIMS) is dominating headlines this week because the GLP-1 darling just delivered one of the ugliest quarters in the telehealth sector’s short history, and bargain hunters are circling the wreckage. But here’s what you should actually be watching.

The Q1 2026 release on May 11, 2026 was a fracture. 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.

The valuation remains stretched even after the drop. 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.

The Redirect: A Profitable Physician Network

The smarter rotation is Doximity (NYSE:DOCS | DOCS Price Prediction), the LinkedIn for U.S. physicians, now trading at $26.45 with a $3.54 billion market cap. Three reasons it deserves the attention HIMS is hogging.

One: real profits. 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.

Two: platform engagement is compounding. 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. That is durable, sticky physician utility, well removed from consumer GLP-1 churn at $80 a month with declining revenue per subscriber.

Three: capital discipline. The board authorized a $500 million share repurchase program. CEO Jeff Tangney summed it up plainly: “We’re proud to deliver another quarter of strong profits and record engagement.” Hims is issuing convertibles to fund acquisitions and stock-based comp. Doximity is buying its own shares back with cash from operations.

The peer set sharpens the point. Teladoc Health (NYSE:TDOC) still bleeds cash, with a $200 million FY2025 net loss and a stock down 94.9% over five years. Veeva Systems (NYSE:VEEV) is the blue-chip benchmark, profitable at a 28.4% profit margin, but already a $26 billion market cap. Doximity sits in the sweet spot: small enough to compound, profitable enough to defend.

For a retirement-focused portfolio, the lesson is the one this writer has watched play out a dozen times. Hype-cycle stocks lose 50% and still aren’t cheap. Cash-generative platforms with engagement moats are what survive the next downcycle. The wreckage at Hims warrants caution; Doximity belongs on the research list.