On August 21, 2026, Bloomberg reported that Hims & Hers Health, Inc. (NYSE:HIMS) was enrolled in Visa Inc. (NYSE:V)’s Acquirer Monitoring Program after customer credit card disputes in its weight-loss subscription business exceeded acceptable levels in July.
Each dispute carries an $8 surcharge, resulting in a bill of nearly $75,000 due in September, and Hims must get its dispute rate below Visa Inc. (NYSE:V)’s 1.5% threshold for three consecutive months to exit the program.
A Hims spokesperson said the company has seen “a relatively small number of disputed charges” and has taken steps to address the issue. The news follows an FTC action from late July alleging deceptive billing and cancellation practices, which Hims has said it will “vigorously defend” against. Shares fell as much as 9.5% on the news.
Bull Case
Hims & Hers Health, Inc. (NYSE:HIMS) itself characterizes the scale of the problem as small relative to its overall business. The company told Bloomberg the disputed charges represent a relatively small number of transactions, and the roughly $75,000 September surcharge bill is immaterial next to Hims’ overall revenue. It is a financial cost investors can weigh directly rather than an open-ended liability.
Weight-loss demand continues to drive strong growth. Despite profitability issues in its weight-loss segment, Hims keeps gaining customers at a rapid pace. In the second quarter, subscriber numbers grew 19% to 2.89 million, while average monthly spending per subscriber jumped 21% to $92, pushing total revenue up 38% to $753.2 million. This proves a key point for investors: billing disputes have not killed actual customer demand.
Hims has a recent, credible track record of resolving exactly this kind of billing and regulatory friction. Six months earlier, Hims resolved a legal dispute with Novo Nordisk over compounded GLP-1 drugs by striking a partnership that let it sell FDA-approved Ozempic and Wegovy directly, a deal that sent shares up 41.7% at the time, evidence management can convert regulatory pressure into a resolved, even positive, outcome.
Bear Case
Visa Inc. (NYSE:V) placed Hims & Hers Health, Inc. (NYSE:HIMS) in its monitoring program after customer dispute rates for its weight-loss subscriptions rose too high. Hims must keep its dispute rate below 1.5% for three straight months to escape the program. This penalty hits right as the FTC and state regulators sue Hims over tricky billing and hard-to-cancel subscriptions, charges Hims denies. If forced to make subscriptions easier to cancel, Hims will lose customers, lower retention, and shrink its subscriber revenue.
Revenue growth is wiping out company profits. Hims swung from a $43.5 million profit to a $127.9 million second-quarter loss, even though revenue grew 38%. Operating expenses jumped 48%. Reuters also reported that gross profit margins fell for the fourth straight quarter as Hims pours money into branded GLP-1 drugs and international expansion.
Regulatory and legal risks keep piling up since the Visa Inc. (NYSE:V) dispute is not happening in a vacuum. Hims faces growing regulatory pressure over compounded GLP-1 drugs, its switch to branded medications, and a new FTC lawsuit alleging privacy, billing, and cancellation violations. Barron’s also underlined the FTC lawsuit, litigation reserves, and shrinking profits as growing investor concerns. These legal troubles drive up compliance costs and create real uncertainty around Hims’ primary growth engine.
Conclusion
Hims & Hers Health, Inc. (NYSE:HIMS) still powers a strong growth story with rapidly growing subscriber numbers, higher spending per customer, and a massive opportunity in weight-loss treatments. The Visa Inc. (NYSE:V) penalty itself costs very little money, and management has previously proven its ability to handle regulatory hurdles through its Novo Nordisk partnership.
However, the credit card disputes add to growing concerns about Hims’ billing practices, right as the company struggles to turn rapid sales growth into actual profits. A sharp quarterly loss, shrinking gross profit margins, and rising legal and regulatory risks put the focus squarely on whether Hims can sustain high-quality growth.
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Disclosure: None. This article is originally published at Insider Monkey.
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