Key Takeaways
- First-quarter revenue reached $608.1M, falling short of Wall Street’s $616.8M estimate
- Hims & Hers reported an unexpected loss of $0.40 per share against analyst expectations of a $0.03 profit
- The shortfall stemmed from inventory write-downs related to compounded semaglutide and non-recurring legal and acquisition expenses
- Full-year revenue outlook increased to $2.8B–$3B, exceeding previous guidance of $2.7B–$2.9B
- Shares tumbled over 8% during extended trading hours following a 3.1% gain to $29.15 in the regular session
Hims & Hers Health delivered first-quarter financial results on Monday evening that surprised analysts and investors alike — featuring an unanticipated loss, below-target revenue, and a swift after-hours selloff.
Shares declined more than 8% during extended-hours trading after finishing the regular session at $29.15. The stock briefly fell over 12%, touching approximately $25.55 at its session low.
Hims & Hers Health, Inc., HIMS
The telehealth company posted quarterly revenue of $608.1 million, representing a 3.7% increase from the prior year but missing the Street’s $616.8 million projection. The earnings disappointment proved more pronounced — delivering a $0.40 per share loss compared to analyst forecasts calling for a $0.03 profit.
Management attributed the red ink to inventory impairments on components used in compounding semaglutide, the key active compound in Novo Nordisk’s Wegovy, alongside extraordinary legal and merger-related expenses.
Subscriber count stood at 2.6 million at quarter-end, climbing from 2.5 million at the conclusion of 2025.
Chief Financial Officer Yemi Okupe indicated the organization anticipates returning to profitability by 2027, emphasizing that operating cash flow remains the company’s primary financial metric.
Strategic Shift in GLP-1 Business
The underlying challenge involves a major business transformation. Hims has been transitioning from compounded GLP-1 therapies toward FDA-sanctioned branded pharmaceuticals like Wegovy, responding to regulatory scrutiny and a legal agreement with Novo Nordisk.
This past March, Novo Nordisk withdrew its patent violation lawsuit against Hims. As part of the settlement, Hims committed to distributing branded Ozempic and Wegovy via its platform while discontinuing promotional activities for its budget-friendly compounded versions.
Average monthly revenue per subscriber decreased to $80 from $85 in the year-ago period. This reduction mirrors the transitional expenses associated with the strategic realignment, rather than declining customer activity — Okupe noted that platform traffic and user interaction reached all-time highs following the switch to branded medications.
Morningstar’s Keonhee Kim observed that the Novo collaboration may still be premature to significantly impact revenue figures, noting that the elevated forecast depends partly on acquisitions instead of purely organic expansion.
Future Projections and Emerging Business Lines
Notwithstanding the quarterly miss, forward guidance appeared robust. Management projected Q2 revenue of $680M to $700M, substantially exceeding the $643M consensus estimate. Annual guidance received an upward revision to $2.8B–$3B.
These projections don’t incorporate any revenue from the pending Eucalyptus acquisition, an Australian telehealth company anticipated to finalize by mid-2026.
CEO Andrew Dudum revealed the company is also targeting the peptide sector. Health and Human Services Secretary Robert F. Kennedy Jr. announced last month that regulatory restrictions on approximately twelve peptides would be relaxed. Dudum stated Hims intends to penetrate this market “at scale” once regulatory barriers diminish.
These particular peptides faced prohibition from compounding pharmacy use in 2023. A policy reversal would create additional revenue opportunities for Hims.
The stock has experienced considerable volatility recently. After bottoming at $14.52 in late February, shares surged over 100% through early May, including a remarkable 31% spike in April driven by peptide-related developments.
HIMS trades approximately 8% lower year-to-date entering Tuesday’s trading session.
