Hims & Hers Health reported a first-quarter revenue shortfall and a surprise quarterly loss on Monday, as the telehealth company navigates a strategic transition toward branded GLP-1 weight-loss medications. Revenue for the period came in at $608.1 million, below analysts' consensus of $616.85 million, while the company recorded a loss of $0.40 per share, compared with the market's expectation of a $0.04 per-share profit.
Shares of the company fell more than 12% in after-hours trading, down to $25.55, after the results were released. The decline came even as management lifted its full-year revenue guidance, citing an anticipated lift from an agreement with Novo Nordisk and growth in international markets.
Hims now projects full-year revenue between $2.8 billion and $3.0 billion, up from its prior forecast of $2.7 billion to $2.9 billion. The company said that the switch from compounded GLP-1 alternatives to FDA-approved, branded drugs will involve near-term restructuring costs but that management expects the business to return to profitability in 2027.
“We historically had focused on operating cash flow, which remained positive. It’s the North Star for the company,” said Yemi Okupe, Chief Financial Officer. “With that said, we would expect to return to profitability and be well-positioned for profitability in 2027.”
Executives told investors the company has experienced record engagement and higher traffic to its platforms since prioritizing FDA-approved GLP-1 therapies such as Novo Nordisk’s Wegovy. In March, Hims announced a partnership with Novo Nordisk to offer Wegovy through its platform, resolving a prior legal dispute between the firms that followed Hims’ earlier introduction of a low-cost compounded alternative to a Wegovy-like pill. Hims has stopped advertising that compounded product.
Despite the stronger engagement, Hims reported margin pressure linked to the strategic pivot. Management attributed the quarter’s loss in part to write-downs on ingredients used to compound semaglutide, the active ingredient in Wegovy, as well as to one-time legal and merger-related costs. These items reduced net income and contributed to the unexpected EPS shortfall.
Monthly revenue per average subscriber also declined year-over-year, falling to $80 from $85 a year earlier, reflecting changes in product mix and customer behavior as the company adjusts its offerings. Analysts at Truist and Morningstar weighed in on the results and forecasts during post-earnings commentary.
Jailendra Singh of Truist noted that average per-customer spending on a GLP-1 order at Hims may have risen because customers bought bundled items, which could affect the per-order economics despite the decline in monthly revenue per subscriber. Morningstar analyst Keonhee Kim warned that the Novo Nordisk partnership may not immediately translate into material top-line momentum, and observed that Hims’ updated revenue outlook relies substantially on acquisitions.
On the company’s earnings call, CEO Andrew Dudum said Hims plans to add some peptides to its product assortment - categories often associated with longevity, wound healing, skincare and obesity - if the U.S. Food and Drug Administration eases restrictions on 12 specific peptides as it has signaled. Dudum said Hims may not be first to market with those peptides but intends to sell them “at scale” should regulatory conditions allow.
The regulatory environment has already affected Hims’ operations. Earlier this year the FDA moved to restrict compounding of copycat GLP-1 drugs and referred Hims to the Department of Justice over potential violations, a development that drove the company’s shares down more than 10% so far this year.
Looking ahead, Hims provided guidance for the second quarter, forecasting revenue between $680 million and $700 million. That range sits above the analysts’ average estimate of $642.95 million compiled by LSEG, suggesting management expects a sequential pickup in sales as partnership dynamics and international initiatives take hold.
Summary: Hims & Hers missed first-quarter revenue estimates and reported a surprise loss driven by restructuring charges and write-downs tied to its move to branded GLP-1 drugs, even as it raised full-year revenue guidance based on a Novo Nordisk partnership and overseas growth. Management expects a return to profitability in 2027.
Key numbers: Q1 revenue $608.1 million (est. $616.85 million); Q1 EPS -$0.40 (est. +$0.04); monthly revenue per average subscriber $80 (prior $85); full-year revenue guidance $2.8 billion-$3.0 billion (prev. $2.7 billion-$2.9 billion); Q2 revenue guidance $680 million-$700 million (analysts' avg. $642.95 million); after-hours share price ~$25.55.