Hims & Hers Health shares fell sharply in extended trading after the company reported a surprise first-quarter loss and a revenue miss, despite raising its full-year guidance. The stock closed regular hours at $29.15, up 3.1%, but dropped more than 8% after the bell, at one point touching $25.55.
Revenue came in at $608.1 million, a 3.7% increase year-over-year but below the $616.8 million analyst consensus. The bottom line swung to a net loss of $92.1 million, or $0.40 per share, from a $49.5 million profit a year earlier. Wall Street had expected a small profit of $0.03 per share.
The loss was driven by write-downs on compounded semaglutide ingredients and one-time legal and merger costs. Hims has been transitioning from compounded GLP-1 medications to FDA-approved branded drugs like Wegovy, following a legal settlement with Novo Nordisk. That strategic pivot weighed on margins: gross margin fell to 65% from 73%.
Subscriber growth remained a bright spot, with nearly 2.6 million subscribers, up 9% year-over-year. However, monthly revenue per average subscriber declined to $80 from $85. The company expects to return to profitability in 2027 and raised its full-year revenue forecast to $2.8–$3.0 billion, excluding the planned Eucalyptus acquisition.
The stock has been volatile, more than doubling from February lows to early May highs before this pullback. Investors now await the integration of branded obesity drugs and potential entry into the peptide market.
