Sharing my Read from Gd Financial Cents and why the price dipped.
In mid 2025, Hims traded like a runaway winner.
Market cap around $12.8B.
Six months later, it sat around $6.94B.
That is about $6.5B erased.
And the reason has almost nothing to do with hair loss or ED.
Hims built a clean business for years:
Simple diagnoses.
Fast shipping.
Subscription revenue across hair, sexual health, dermatology, and mental health.
Then they caught the biggest consumer health wave of the decade.
Weight loss injections.
Not the brand name versions.
The cheaper compounded versions that exploded during shortages.
That product line turned Hims into a rocket ship.
It helped drive a massive jump in revenue and delivered the company’s first annual profit, according to the Financial Times.
But the decision that powered the run also created the risk that crushed the stock.
Because compounding lives and dies by policy.
On February 21, 2025, the FDA said the shortage of semaglutide injection products was resolved.
When shortage status ends, the lane for mass compounding tightens fast.
Then the scrutiny escalated.
On September 9, 2025, the FDA published a warning letter to Hims & Hers regarding promotional claims for compounded semaglutide on its website.
A week later, Reuters reported the FDA sent drug advertising warning letters that included Hims.
The FDA also published broader safety and quality concerns tied to unapproved compounded versions being used for weight loss.
That is when Wall Street repriced the story.
Investors stopped paying for maximum upside.
Investors started discounting a revenue stream that can get squeezed by regulators, headlines, or enforcement.
The twist is that the underlying business kept growing.
Even after the volatility, Hims was still putting up big sales numbers and reaffirming aggressive revenue targets, with reporting that highlighted the weight loss segment as a major growth driver.
So the chart makes sense.
A subscription telehealth platform looks stable.
A subscription platform with a fast growing product line sitting in a tightening regulatory box trades like a risk asset.
Hims & Hers Health Inc : TD Cowen Cuts Target Price to $30 From $37
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