Hims and Hers slides after revenue misses estimates amid GLP-1 scrutiny

Published 04/08/2025, 21:38
Updated 05/08/2025, 09:20
© Reuters

Investing.com - Shares of Hims and Hers Health fell 14% in premarket trading after the telehealth company reported second-quarter revenue that missed Wall Street estimates amid legal and regulatory scrutiny over its compounded weight-loss drug offerings.

Revenue for the quarter rose to $544.8 million but came in below the consensus estimate of $549.9 million.

The stock has declined recently as investor focus has sharpened around its GLP-1 business. Hims sells compounded versions of semaglutide, the active ingredient in blockbuster drugs Wegovy and Ozempic, both made by Novo Nordisk (NYSE:NVO).

Last week, Novo cut its annual sales forecast and blamed weaker U.S. demand for its GLP-1 drugs in part on the widespread availability of compounded alternatives. It also stepped up legal pressure on platforms that sells compounded versions calling it unlawful and unsafe.

Novo recently terminated a short-lived partnership with Hims and has filed lawsuits targeting compounded semaglutide sales.

Hims offers a one-year prepaid program costing $199 per month for a "personalized" dose of compounded semaglutide, the active ingredient in pharmaceutical giant Novo Nordisk’s blockbuster Wegovy obesity treatment.

Hims was initially boosted by a Food and Drug Administration decision to allow compounding pharmacies to sell copies of semaglutide in order to meet a shortage of Wegovy and Eli Lilly (NYSE:LLY)’s Zepbound following a surge in sales of the drugs since 2022. But the FDA said earlier this year that the shortage had come to an end, adding that those firms selling copies should stop mass sales.

Sequential growth has since taken a hit, with Hims noting that its GLP-1 business contributed $190 million in online revenue during its latest quarter, down from $230 million in the prior three-month period.

More expensive shipments and subscriber losses also dented profits, although adjusted earnings per share of $0.17 still beat expectations by 2 cents.

For the third quarter, the company said in now expects revenue to be between $570 million and $590 million, bracketing the $584.2 million analyst consensus.

Full-year revenue is anticipated to range between $2.3 billion and $2.4 billion, broadly in line with the $2.36 billion analysts were looking for.

"Hims appears to be heading into the second half in a state of transition as they work through a wind-down in the [...] GLP-1 revenue stream" and undergo a shift in focus toward a sexual health business, which includes the sale of erectile dysfunction generic drugs, analysts at Needham said in a note.

(Scott Kanowsky contributed reporting.)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.