Key Highlights
- First-quarter revenue reached $608.1M, falling short of Wall Street’s $616.8M estimate
- Unexpected loss of $0.40 per share reported versus anticipated profit of $0.03
- Losses attributed to compounded semaglutide ingredient write-downs plus legal and M&A expenses
- Full-year revenue outlook increased to $2.8B–$3B from previous $2.7B–$2.9B guidance
- Shares dropped over 8% after market close following a 3.1% gain to $29.15 during regular trading
Hims & Hers Health delivered first-quarter financial results Monday evening that blindsided investors — featuring an unexpected loss, below-target revenue, and immediate after-hours selling pressure.
Shares plummeted more than 8% in extended-hours trading after finishing the regular session at $29.15. The stock briefly touched levels exceeding 12% down, trading near $25.55.
Hims & Hers Health, Inc., HIMS
Quarterly revenue totaled $608.1 million, representing a 3.7% year-over-year increase yet missing the $616.8 million analyst projection. The earnings shortfall proved more dramatic — posting a $0.40 per share loss compared to the $0.03 earnings per share Wall Street anticipated.
The deficit stemmed from inventory write-downs related to semaglutide compounding ingredients, the active component in Novo Nordisk’s Wegovy, combined with non-recurring legal settlements and merger expenses.
Subscriber count reached 2.6 million at quarter-end, climbing from 2.5 million subscribers recorded at the close of 2025.
Chief Financial Officer Yemi Okupe indicated profitability should resume in 2027, emphasizing that operating cash flow continues as the company’s primary performance metric.
Strategic Shift in GLP-1 Offerings
The fundamental challenge involves a major business transition. Hims has been pivoting from compounded GLP-1 treatments toward FDA-sanctioned branded pharmaceuticals like Wegovy, responding to regulatory challenges and a legal agreement with Novo Nordisk.
Novo Nordisk withdrew its patent litigation against Hims in March. As part of the settlement, Hims committed to distributing branded Ozempic and Wegovy via its platform while discontinuing promotion of its budget-friendly compounded versions.
Average monthly revenue per subscriber declined to $80 from the prior year’s $85. This reduction mirrors transition-related expenses rather than diminished customer activity — Okupe noted that platform traffic and user engagement reached all-time highs following the branded drug transition.
Morningstar analyst Keonhee Kim observed that the Novo collaboration may need additional time to substantially impact revenue figures, noting that the enhanced forecast depends partly on acquisitions versus purely organic expansion.
Forward Guidance and Emerging Opportunities
Notwithstanding the quarterly shortfall, future projections appeared robust. Hims projected second-quarter revenue between $680M and $700M, significantly exceeding the $643M consensus estimate. Annual guidance was elevated to $2.8B–$3B.
These projections don’t incorporate anticipated contributions from the Eucalyptus acquisition, an Australian telehealth company expected to finalize mid-2026.
CEO Andrew Dudum revealed the company’s interest in expanding into the peptide sector. Health and Human Services Secretary Robert F. Kennedy Jr. announced last month that restrictions governing approximately a dozen peptides would be relaxed. Dudum stated Hims intends to pursue this opportunity “at scale” following regulatory easing.
These peptides faced compounding pharmacy prohibitions beginning in 2023. A policy reversal would create fresh revenue channels for Hims.
The stock has experienced significant volatility recently. It hit a low of $14.52 in late February before rallying over 100% through early May, including a substantial 31% April surge driven by peptide-related developments.
HIMS currently trades approximately 8% lower year-to-date entering Tuesday’s trading session.
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