Hims & Hers (HIMS) Shares Plunge 8% Following Unexpected Quarterly Loss

Key Takeaways

• First-quarter revenue reached $608.1M, falling short of Wall Street’s $616.8M projection
• Unexpected loss of $0.40 per share contrasts sharply with analyst expectations of a $0.03 profit
• Losses attributed to inventory write-downs for compounded semaglutide materials plus one-time legal and acquisition expenses
• Full-year revenue projection increased to $2.8B–$3B range, up from previous $2.7B–$2.9B guidance
• Shares declined over 8% during after-hours trading following a 3.1% gain to close at $29.15

Hims & Hers Health delivered first-quarter financial results Monday evening that left analysts and investors reeling — an unanticipated loss, weaker-than-expected revenue, and immediate downward pressure on shares.

Shares tumbled more than 8% in extended-hours trading after finishing the regular session at $29.15. During the steepest decline, the stock touched approximately $25.55, representing a drop exceeding 12%.

Hims & Hers Health, Inc., HIMS

First-quarter revenue totaled $608.1 million, representing a 3.7% increase year-over-year but missing the $616.8 million analyst consensus estimate. The earnings shortfall proved more dramatic — the company reported a $0.40 per share loss compared to the anticipated $0.03 profit.

Management attributed the deficit to inventory impairments related to semaglutide compounding ingredients, the active compound found in Novo Nordisk’s weight-loss medication Wegovy, combined with non-recurring legal settlements and merger expenses.

Subscriber counts reached 2.6 million by quarter-end, up modestly from 2.5 million subscribers recorded at the conclusion of 2025.

CFO Yemi Okupe indicated the organization anticipates returning to profitable operations by 2027, maintaining that operating cash flow continues to serve as the company’s primary performance metric.

The Weight-Loss Drug Strategy Shift

The fundamental challenge stems from a major business transformation. Hims has been transitioning from compounded GLP-1 treatments toward FDA-sanctioned brand-name medications such as Wegovy, responding to regulatory scrutiny and a legal resolution with Novo Nordisk.

This past March, Novo Nordisk withdrew its patent violation litigation against Hims. Under the settlement terms, Hims committed to distributing branded Ozempic and Wegovy via its platform while discontinuing promotional activities for its lower-priced compounded versions.

Average monthly revenue per subscriber decreased to $80 from $85 recorded one year earlier. This reduction mirrors the transitional expenses associated with the strategic realignment rather than declining user activity — Okupe noted that platform traffic and user engagement reached all-time highs following the switch to branded pharmaceutical products.

Morningstar analyst Keonhee Kim suggested the Novo collaboration may require additional time before substantially impacting revenues, noting the elevated forecast depends significantly on acquisitions versus internal growth.

Future Projections and Emerging Revenue Opportunities

Despite the quarterly shortfall, forward guidance proved encouraging. Hims projected second-quarter revenue between $680M and $700M, substantially exceeding the $643M consensus estimate. Annual guidance received an upward revision to $2.8B–$3B.

These projections exclude potential contributions from the pending Eucalyptus acquisition, an Australian telehealth company anticipated to finalize by mid-2026.

CEO Andrew Dudum indicated the company is positioning itself to enter the peptide marketplace. Health and Human Services Secretary Robert F. Kennedy Jr. announced last month that regulatory restrictions covering approximately twelve peptides would be relaxed. Dudum stated Hims intends to enter this sector “at scale” following the easing of regulatory barriers.

The peptides referenced were prohibited from compounding pharmacy usage in 2023. A policy reversal would create additional revenue opportunities for Hims.

The stock has experienced significant volatility recently. After reaching a low of $14.52 in late February, shares surged over 100% through early May, including a 31% single-day jump in April driven by peptide-related developments.

HIMS currently trades down approximately 8% year-to-date entering Tuesday’s trading session.

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