Shares fall 8% after hours
Personalized weight-loss products generate $65 million headwind in Q1
Overseas expansion to boost growth in non-weight-loss business
Online telehealth company Hims & Hers Health Inc., which sells weight-loss drugs, hormone replacement therapies and health services, on Monday forecast first-quarter revenue below estimates, pushing its shares down 8% in after-hours trading.
The company said that the first quarter would be facing a $65 million burden from changes in the shipping of weight-loss products, which must be personalized for each prescription based on U.S. law.
Hims and Hers has grown rapidly as customers flocked to its cheap weight-loss drugs, which include compounded injectable versions of Novo Nordisk's highly popular Wegovy. Since those drugs are no longer in shortage, Hims is only allowed to make the medicines for customers if the dosage or ingredients are personalized.
Hims' efforts to launch compounded copies of Novo's new Wegovy pill at an introductory price of $49 per month were cut down earlier this month by the U.S. Food and Drug Administration, which said it would take action against it and other companies and referred Hims to the Department of Justice. Hims said in a regulatory filing that it is unclear what actions the regulators and DOJ may pursue. Novo also filed a patent suit against the company.
The stock is down 52% so far this year. Still, the company gave a 2026 outlook with the midpoint above analysts' estimates and vowed to stay on course.
"We plan to continue to operate like we always have," said CEO Andrew Dudum, who added the company is systematically broadening and diversifying its offerings. "It's important to remember that the majority of our revenue and profitability is driven by offerings outside of weight loss."
Hims and Hers forecast revenue of $600 million to $625 million for the first quarter, missing estimates of $653.11 million, according to data compiled by LSEG.
Hims also expects 2026 revenue to be in the range of $2.7 billion to $2.9 billion, compared to estimates of $2.74 billion.
REGULATORY RISK FUELS UNCERTAINTY
International expansion may help it grow but does not address the continuity of the company's weight-loss business, which remains uncertain due to regulatory risks, said Michael Cherny, an analyst at Leerink Partners.
"It would widen the long-term opportunity, but the more important component for the stock is how Hims progresses with its weight-loss business," Cherny said.
The company said its outlook gives "flexibility to lean into future investments" and said it will keep Hims on track for its 2030 target of more than $6.5 billion in revenue.
Hims last week said it will acquire Australian digital health company Eucalyptus in a deal valued at up to $1.15 billion. Analysts said the deal could accelerate growth for the company's non-weight-loss offerings.
Subscribers rose to 2.5 million, up 13% from the prior year.
It reported quarterly revenue of $617.8 million, an increase of 28% year-over-year, but below the analysts' average estimate of $619.22 million.
The company's product costs increased over 30%, a regulatory filing showed.
Hims' investment in its Super Bowl ad will also raise first-quarter operating costs, CFO Yemi Okupe said.
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