New York, May 12, 2026, 11:52 (EDT)
- Hims & Hers shares tumbled roughly 14.6% late morning, with the stock at $24.89 after the Q1 loss highlighted immediate costs tied to its weight-loss drug shift.
- It’s not just about demand. Investors are pricing in a move away from high-margin compounded GLP-1s toward branded names like Wegovy and Ozempic, and that comes with tighter timelines, higher costs, and squeezed gross margins.
- Bulls point to the growth pitch: 2026 revenue guidance raised, nearly 2.6 million subscribers, plus solid initial Wegovy delivery numbers. But the bear case is simple—Hims has to show those sales translate into lasting profits.
Hims & Hers Health shares tumbled Tuesday, sliding 14.6% to $24.89 after an intraday dip to $24.29. First-quarter numbers hit, but what really moved the stock was a strategic reset that raised fresh doubts about profits. Growth isn’t the issue, not right now—what’s changed is the appetite to back it unless margins stay intact.
The selloff went deeper than just a weak quarter. Investors started revaluing Hims’ weight-loss business model. The company had been riding the compounded GLP-1 wave—those drugs popular for diabetes and weight loss. But now Hims is pivoting toward branded, FDA-approved options from Novo Nordisk, specifically Wegovy and Ozempic, while sharply scaling back compounded semaglutide. Legal and regulatory exposure drops, but so does the business math.
Damage is clear in the Q1 results. Revenue climbed 4% year-over-year, hitting $608.1 million, but gross margin slipped to 65%, down from 73%. Net loss landed at $92.1 million—last year, the company had turned a $49.5 million profit. Adjusted EBITDA was cut in half to $44.3 million from $91.1 million. Subscribers grew 9% to 2.584 million, though monthly revenue per average subscriber dropped to $80 from $85.
Timing turned into an issue here. Hims said changes to quicker shipping schedules affected how it records revenue from certain weight-loss products, so some sales didn’t hit this quarter as investors had anticipated. The company recorded $33.5 million in restructuring and related charges connected to its U.S. weight-loss realignment—$28.5 million of that went into cost of revenue. Add to that $15 million in legal settlement expenses and $13.4 million for acquisition and transaction costs.
Management painted the quarter as a calculated reset rather than a sign of demand slipping. CEO Andrew Dudum told analysts the company shipped more than 125,000 Wegovy orders just six weeks after rolling out direct access to Novo Nordisk GLP-1 drugs. On the same call, CFO Yemi Okupe flagged coming pressure on gross margins as Hims pushes into weight loss, labs, and international expansion, describing the first-quarter shift as a “deliberate strategic shift.” The Motley Fool The Motley Fool
That’s the bullish argument, laid out. Hims bumped its 2026 revenue target up, now projecting between $2.8 billion and $3.0 billion, and set Q2 guidance at $680 million to $700 million. Wall Street was looking for about $642.95 million in Q2 revenue, according to Reuters. Bulls see the company sacrificing near-term margin to build a stickier platform—think branded GLP-1s, hormone therapy, diagnostic labs, AI-driven care, and a push overseas.
The bear argument picks up from there. Hims is calling for full-year adjusted EBITDA in the $275 million to $350 million range, which translates to a 10% to 12% margin. Management flagged expectations for a “meaningful step-up” in EBITDA during the third and fourth quarters. That’s asking a lot of the back half, especially after a quarter where revenue timing, shifts in product mix, and some one-off charges all worked against the company. Hims Inc. The Motley Fool
Competition is also heating up. Novo Nordisk and Eli Lilly have moved closer to the center of Hims’ weight-loss business since they hold the branded drugs. Hims says providers using its platform can prescribe Zepbound vials, KwikPen, and Foundayo via LillyDirect pharmacy access, though it stresses there’s no official relationship with Lilly. Amazon’s jumped into the mix, too, rolling out GLP-1 treatment, pharmacy, and virtual care through One Medical—with same-day delivery now an option in close to 3,000 cities.
Part of the move traces straight to the FDA. On April 30, the agency signaled plans to drop semaglutide, tirzepatide, and liraglutide from the 503B bulks list. If it sticks, that change tightens the rules for outsourcing facilities, making it tougher to compound these drugs in bulk when the branded versions are already approved. That’s a win for the companies holding the original patents. The shift puts a dent in the workaround that let telehealth firms ramp up cheap GLP-1 offerings at speed.
Analysts are divided, but it mostly comes down to when—not if—demand shows up. “We view HIMS as an execution story now,” Jefferies analyst Brian Tanquilut told Reuters, pointing out that investors are waiting for clear signs earnings have hit their low point. Over at J.P. Morgan, analyst Cory Carpenter pointed to a more supportive backdrop: a weight-loss segment holding steady, the legalization of peptides, and the possibility of revenue picking up again later in the year. Reuters
The market’s reaction is pretty clear-cut. Hims retains its user base, site visits, and its position as a big name in consumer health. What’s shifted: investors are reassessing the value of that next dollar earned. Branded GLP-1 products could deliver volume, but margins there don’t necessarily stack up to what Hims enjoyed previously. Plus, those sales hinge more heavily on the whims of pharma firms, regulatory approvals, and the pharmacy supply chain.
Stability for the stock hinges on Q2—investors need to see that the Wegovy ramp and the rest of the FDA-approved lineup aren’t just about volume. Eyes will be on gross margin, monthly revenue per subscriber, and the scale of the pledged EBITDA jump in the back half. Hims is pitching a platform. But the tape right now? The market’s looking for numbers.
