Hims earnings missed Wall Street expectations on Monday as Hims & Hers Health posted first-quarter revenue of $608.1 million and a surprise loss tied to its shift toward branded GLP-1 weight-loss drugs.
The company’s shares fell more than 12% in extended trading to $25.55 after revenue came in below analysts’ estimate of $616.85 million. Hims also reported a loss of 40 cents per share, compared with analyst expectations for a 4-cent profit.
Hims raised its annual revenue forecast to between $2.8 billion and $3 billion, up from its previous range of $2.7 billion to $2.9 billion, citing expected support from international growth and its partnership with Novo Nordisk.
Chief Financial Officer Yemi Okupe said the transition from compounded GLP-1 products to branded drugs had introduced restructuring costs but that the company expected to return to profitability in 2027.
Hims partnered with Novo Nordisk in March to offer Wegovy on its platform, ending a legal dispute that followed Hims’ launch of a lower-cost compounded alternative, which it has since stopped advertising.
Morningstar analyst Keonhee Kim said it may be too early for the Novo Nordisk partnership to drive growth and said the company’s forecast was largely based on acquisitions.
The U.S. Food and Drug Administration moved earlier this year to restrict compounding of copycat GLP-1 drugs and referred Hims to the Department of Justice over potential violations, sending the company’s shares down more than 10% this year.
Hims said monthly revenue per average subscriber fell to $80 from $85 a year earlier. The company forecast second-quarter revenue of $680 million to $700 million, above the $642.95 million average analyst estimate compiled by LSEG.