Hims & Hers Drops 16% on Quarterly Loss and Soft Outlook

CNBC reported Tuesday that Hims & Hers stock cratered roughly 16% in early trading after the telehealth company delivered a deeper-than-expected net loss and underwhelming forward guidance.

First-Quarter Results Disappoint on Multiple Fronts

The company posted a first-quarter net loss of $92 million. That figure nearly doubled the approximately $50 million loss recorded during the same period a year earlier. Adjusted EBITDA also contracted sharply, falling to $44 million from $91 million in the prior-year quarter. Revenue climbed 4% to $608 million, offering only partial relief for investors. Average monthly revenue per subscriber dipped to $80, down from $85 a year ago.

Guidance Falls Short of Expectations

Hims & Hers guided second-quarter revenue to a range of $680 million to $700 million. It also projected second-quarter adjusted EBITDA of up to $55 million. For the full year, the company forecast revenue of up to $3 billion and adjusted EBITDA of up to $350 million. Analysts at Citi described the outlook as “mixed,” noting the second-quarter revenue projection came in below their own estimates. Citi also flagged the quarter as a transitional period for the business.

Also Read: What Is Adjusted EBITDA and Why Do Investors Track It?

Background: The GLP-1 Pivot Reshaping the Business

Hims & Hers built a notably profitable revenue stream around compounded GLP-1 weight loss medications. Those are cheaper, pharmacy-mixed alternatives to branded drugs like Novo Nordisk’s Wegovy. That business model drew regulatory scrutiny as the FDA worked to restrict compounded versions of semaglutide. In March, Hims reached an agreement with Novo Nordisk to sell Wegovy directly through its platform. As part of that arrangement, the company committed to winding down its promotion of compounded alternatives. The transition is now squeezing margins and resetting its earnings trajectory.

Also Read: FDA Semaglutide Compounding Rules Explained

What Comes Next for Hims & Hers

Investor sentiment around Hims & Hers has become tightly coupled to any news touching its weight loss drug access. The Wegovy partnership offers a longer-term credibility boost. But the near-term cost of abandoning compounding revenue is landing squarely on its earnings statements. Whether the branded-drug pivot can rebuild margins at speed is the central question traders are now pricing in.

Read Next: Novo Nordisk and the Race to Dominate the GLP-1 Market