Hims & Hers Revenue Misses Estimates as Weight Loss Strategy Shift Pressures Sales

Hims & Hers Health missed Wall Street revenue expectations for the first quarter of 2026 and posted a surprise loss, the telehealth company reported on May 11, as its strategic pivot toward branded GLP-1 weight loss drugs introduced significant restructuring costs and weighed on domestic sales.

The company reported first-quarter revenue of $608.1 million, falling short of the $616.85 million analysts had projected. Earnings per share came in at a loss of 40 cents, far below the estimate of a profit of 4 cents per share. The results included a GAAP net loss of $92.1 million, compared with net income of $49.5 million in the same period last year.

Chief Financial Officer Yemi Okupe attributed the loss to write-downs on ingredients used to compound semaglutide, the active ingredient in Novo Nordisk’s Wegovy, as well as one-time legal and merger costs. Specifically, the company incurred approximately $33 million in restructuring charges, with about $28 million of that affecting gross margin, which fell to 65% from 73% a year earlier.

“We historically had focused on operating cash flow, which remained positive. It’s the North Star for the company,” Okupe said on the earnings call. “With that said, we would expect to return to profitability and be well-positioned for profitability in 2027”.

The quarterly results reflect a significant operational pivot announced in March 2026, when Hims & Hers discontinued advertising its compounded weight loss products and prioritized branded GLP-1 medications, including Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound. The company had previously been locked in a legal dispute with Novo Nordisk over its lower-cost compounded alternatives but resolved the conflict by forming a direct partnership.

Chief Executive Officer Andrew Dudum emphasized the strategic rationale behind the shift. “2026 is a landmark year for Hims & Hers. Not only are we growing, but we are far ahead on our journey to becoming the largest consumer health platform globally,” Dudum said in the earnings release. On the post-earnings call, he added, “Hims & Hers is on its way to becoming an everyday health partner, not just for the nearly 2.6 million people we currently serve, but for millions more around the world”.

Despite the earnings miss, the company raised its full-year 2026 revenue forecast to $2.8 billion to $3.0 billion, up from its prior guidance of $2.7 billion to $2.9 billion, citing expectations that the Novo Nordisk partnership and strong international growth will boost sales. For the second quarter, Hims & Hers expects revenue between $680 million and $700 million, surpassing the analyst consensus of approximately $643 million.

Early results from the strategic pivot showed momentum. Within six weeks of introducing direct access to Wegovy products, the company fulfilled more than 125,000 shipments. Dudum said customers have responded particularly well to the Wegovy pill’s price point, efficacy, and safety profile. The company is now on track to add north of 100,000 new weight loss subscribers per month, with nearly 90% of those users downloading the app.

International revenue grew dramatically, reaching $78 million, approximately ten times the $7 million reported in the same quarter last year, driven by acquisitions including ZAVA and Livewell. The company also expanded its subscriber base to nearly 2.6 million, up 9% year over year, while personalized subscribers grew 20% to 1.7 million, now representing 65% of the total.

However, profitability metrics showed strain. Adjusted EBITDA fell to $44 million, representing a 7% margin, down sharply from 16% in the year-ago quarter. Monthly revenue per average subscriber declined to $80 from a peak of $85 in the first quarter of 2025, reflecting pricing pressure and mix shift as the company expands into new markets and specialties.

“We are undergoing what is likely to be a transition period that may create volatility in GAAP results and ratios, as reflected in our first quarter results,” Okupe cautioned during the earnings call.

Shares fell more than 12% in after-hours trading to $25.55 following the announcement, even as the company raised its full-year outlook. The stock remains down approximately 47% over the past 12 months despite a recent rally.