Hims & Hers Shares Fall as GLP-1 Costs Widen Q2 Loss

Hims & Hers Health shares dropped more than 6% in after-hours trading after the telehealth company reported a wider-than-expected second-quarter loss, as rising costs tied to branded GLP-1 weight-loss drugs pressured profitability.

The company posted a net loss of $0.37 per share, significantly worse than analysts’ expectation of a $0.01 loss per share, according to LSEG data. Hims said its transition toward branded GLP-1 weight-loss treatments resulted in $4.6 million in restructuring costs during the quarter.

Despite the earnings miss, Hims & Hers raised its full-year revenue forecast to between $3.1 billion and $3.3 billion, up from its previous guidance of $2.8 billion to $3 billion. The updated outlook includes revenue from Eucalyptus, the Australian digital health company Hims agreed to acquire in February.

Chief Financial Officer Yemi Okupe said the company’s domestic and existing international operations were already performing above its previous guidance range even without the expected Eucalyptus contribution.

Growth in Hims’ GLP-1 weight-loss business and international operations has helped strengthen revenue and subscriptions, but the expansion is also weighing on gross margins. The company expects margins to remain below historical levels as it continues investing in these businesses.

Hims & Hers reported nearly 2.9 million subscribers during the second quarter, representing 19% year-over-year growth. Monthly online revenue per average subscriber increased 21% to $92.

Management expects Hims to return to profitability in 2027 and remains confident in its target of reaching $6.5 billion in annual revenue by 2030.

The telehealth provider is also expanding its personalized healthcare capabilities through investments in diagnostics, laboratory infrastructure and peptide treatments. Earlier this year, Hims acquired a California peptide facility.

The company is testing ingredients used in compounded peptide treatments and believes it could eventually provide such products at scale if U.S. regulations allow. The strategy comes as regulatory scrutiny surrounding compounded medicines and peptide therapies remains elevated.