Hims & Hers shares plunge after branded weight-loss shift sparks loss

Hims & Hers Health is finding that a growth strategy can punish margins before it improves them. The telehealth company’s shares fell 11% to $25.95 in morning trading after it reported a surprise first-quarter loss and missed revenue estimates, a setback that wiped about $730 million from its market value.

The strain came as Hims & Hers shifted away from cheaper compounded GLP-1 versions and toward branded weight-loss drugs, a move that raised product costs and restructuring expenses just as investors were hoping for cleaner growth. The company also changed shipping schedules for some weight-loss products, which pushed the timing of revenue recognition and hit the U.S. top line. In a business built on fast consumer demand, those accounting and fulfillment changes can make a still-growing operation look weaker from one quarter to the next.

Hims & Hers said March 9 that it would no longer advertise compounded GLP-1 offerings on its platform or in its marketing, and would offer them only in limited cases for patients whose clinical needs cannot be met by FDA-approved treatments. The company has since aligned its U.S. and global weight-loss plans around a broader menu of FDA-approved GLP-1s, including access to Novo Nordisk’s Ozempic and Wegovy. That repositioning followed a regulatory backdrop that has narrowed the room for copycat drugs: the U.S. Food and Drug Administration said February 21, 2025, that the semaglutide shortage was resolved, then said April 1, 2026, that national GLP-1 supply was stabilizing and reminded compounders about the conditions required for legal exemptions.

The numbers show why the company is still betting on the category despite the near-term hit. First-quarter revenue rose 4% from a year earlier to about $608 million, and subscribers climbed 9% to nearly 2.6 million. Hims & Hers raised its full-year 2026 revenue outlook to $2.8 billion to $3.0 billion and adjusted EBITDA guidance to $275 million to $350 million. It also said it will switch from a quarterly shareholder letter to an annual one, while keeping quarterly earnings calls, releases and supplemental materials. Full-year 2025 revenue reached about $2.35 billion, up 59%, and net income was $128 million, with more than 2.5 million subscribers.

Even so, Wall Street is split on how quickly the new model can absorb the cost of branded drugs. Jefferies framed the story as an execution test, while J.P. Morgan said the quarter was no worse than feared and pointed to a more stable weight-loss business, peptide legalization and a second-half revenue rebound as possible support. Hims & Hers expects profit to return in 2027, but the larger question is whether digital health can build a durable obesity franchise once hype, reimbursement and supply constraints collide.