Key Takeaways
- Q1 revenue reached $608.1M, falling short of Wall Street’s $616.8M projection
- 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 guidance increased to $2.8B–$3B from the previous $2.7B–$2.9B range
- Shares declined over 8% in after-hours trading following a 3.1% gain to $29.15 during regular hours
The telehealth platform Hims & Hers Health delivered first-quarter earnings Monday evening that shocked investors — missing revenue targets, swinging to an unexpected loss, and triggering a sharp selloff in extended trading.
Shares tumbled more than 8% after regular trading closed at $29.15. The decline intensified earlier in the after-hours session, with the stock briefly dropping over 12% to approximately $25.55.
Hims & Hers Health, Inc., HIMS
The 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 estimate. More striking was the earnings disappointment — a $0.40 per share loss compared to Wall Street’s forecast of a $0.03 per share gain.
Management attributed the loss to inventory impairments on compounded semaglutide components — the active compound in Novo Nordisk’s weight-loss medication Wegovy — alongside non-recurring expenses from litigation settlements and merger activity.
Subscriber count reached 2.6 million at quarter-end, up modestly from 2.5 million subscribers reported at the close of 2025.
Chief Financial Officer Yemi Okupe indicated the company anticipates returning to positive earnings by 2027, emphasizing that operating cash flow continues to be the primary financial metric guiding strategic decisions.
Transitioning Away from Compounded Weight-Loss Drugs
The underlying challenge involves a major business pivot. The company has been shifting from compounded GLP-1 weight-loss treatments 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 marketing of its budget-friendly compounded versions.
Average monthly revenue per subscriber decreased to $80 from $85 in the year-ago period. Management clarified that this reduction reflects transition-related expenses from the product shift rather than weakening customer engagement — Okupe noted that platform traffic and user activity reached all-time highs following the introduction of branded medications.
Morningstar equity analyst Keonhee Kim observed that the Novo partnership may require more time to materially impact financial results, noting that the improved forecast depends partly on acquisitions rather than purely internal growth.
Forward Guidance and Emerging Business Opportunities
Despite the quarterly miss, management offered encouraging projections. Second-quarter revenue is expected between $680M and $700M, substantially above the analyst consensus of $643M. The full-year outlook was upgraded to $2.8B–$3B.
These projections don’t incorporate any revenue from the pending Eucalyptus acquisition, an Australia-based telehealth company expected to complete the transaction by mid-2026.
Chief Executive Andrew Dudum revealed the company is also targeting the peptide therapeutics market. Health and Human Services Secretary Robert F. Kennedy Jr. announced last month that regulatory constraints on approximately a dozen peptides would be relaxed. Dudum stated Hims intends to enter this segment “at scale” once restrictions are lifted.
These peptides were prohibited from compounding pharmacy use in 2023. A policy reversal would create substantial new revenue opportunities for the platform.
The stock has experienced significant volatility recently. After hitting a low of $14.52 in late February, shares more than doubled through early May, including a 31% single-day surge in April driven by peptide-related regulatory developments.
HIMS shares are down roughly 8% for the year entering Tuesday’s trading session.
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