“Difficult Quarter”: HIMS Plunges On Weak GLP-1 Sales

Hims & Hers Health (HIMS), the telehealth platform known for selling compounded GLP-1 weight-loss drugs, tumbled in premarket trading in New York after missing Wall Street’s revenue estimates in its Monday after-hours earnings release, despite posting a profit beat. 

Despite strong year-over-year growth in revenue (+73%) and beating EPS and EBITDA estimates, HIMS fell short of revenue and subscriber projections in the second quarter, raising concerns about sustaining momentum, especially with GLP-1s accounting for about 35% of revenue and regulatory scrutiny around GLP-1 compounds mounting. 

HIMS Q2 Earnings Summary:

Revenue: $544.8M (+73% YoY) — missed estimate of $552.1M

• GLP-1 revenue: ~$190M

EPS: $0.17 — beat estimate of $0.15 (vs. $0.06 YoY)

Adj. EBITDA: $82.2M — beat estimate of $72M (vs. $39.3M YoY)

Gross Margin: 76% — beat estimate of 75.6% (but down from 81% YoY)

Subscribers: 2.44M (+31% YoY) — missed estimate of 2.49M

Operating Expenses: $389.5M — up 59% YoY

HIMS has come under fire for continuing to sell compounded GLP-1 drugs, priced much lower than Novo Nordisk’s blockbuster weight-loss treatment, Wegovy (semaglutide). While compounding is permitted during drug shortages, the FDA declared in February that supply woes have been resolved, raising many questions about HIMS’ ongoing sales.

Just weeks ago, Novo shares crashed the most on record after the Danish pharma giant slashed its full-year sales and profit guidance, citing slumping Wegovy sales. It noted compounded GLP-1 knockoffs that continue to flood the market. 

This is key: Novo stated it’s “pursuing multiple strategies, including litigation, to protect patients from knockoff ‘semaglutide’ drugs.” And this is alarming news for HIMS. 

HIMS 3Q and full-year outlooks were mainly in line with Wall Street estimates: 

3Q Outlook Summary (vs. Estimates):

• 3Q Outlook Summary (vs. Estimates): Revenue Guidance: $570M–$590M (Street: $584.2M) In line

• Adj. EBITDA Guidance: $60M–$70M (Street: $76.7M) Light

Full-Year Guidance Summary (vs. Estimates):

• Revenue: $2.3B–$2.4B (Street: $2.36B) In line

• Adj. EBITDA: $295M–$335M (Street: $322.1M) In line Weight-Loss Revenue: At least $725M 

Commentary from Wall Street analysts includes weak sales trends for its weight-loss drugs (courtesy of Bloomberg): 

Citi (sell, PT $30)

• Hims had a “difficult quarter” with a decline in weight-loss drug sales hitting revenue

• “The GLP-1 decline was well-telegraphed given the end of bulk compounding; however, we were a bit surprised to see no sequential core revenue growth, which was largely driven by switching sexual health members from on-demand to daily solutions”

Jefferies (hold, PT to $51 from $50)

• Negatives include the 2Q revenue miss, 3Q Ebitda guidance below the Street, and declining GLP-1 revenue

• While investors are focused on topline growth and GLP trends, the 2Q Ebitda beat is a positive that management deserve credit for

Needham (hold)

• The company is heading into 2H in “a state of transition” as it works through a wind-down in the GLP-1 revenue stream and shifts focus toward sexual health

• Hims is simultaneously investing to launch hormonal health in 2H and expand into Canada in 2026

Shares of HIMS are down about 13% in premarket trading as of 6:45 a.m. ET, falling from Monday’s close near record highs of $63 to around $55 per share.

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