Hims and Hers misses revenue estimates as GLP-1 weight-loss customers leave; shares fall

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By Amina Niasse and Christy Santhosh

NEW YORK (Reuters) -Online telehealth company Hims and Hers Health missed Wall Street estimates for second-quarter revenue on Monday, as it lost subscribers for compounded versions of weight-loss drugs, sending its shares down 14% in extended trading.

The San Francisco-based company said its sexual health business, which sells erectile dysfunction generic drugs, also fell.

Hims is shifting to creating copies of Novo Nordisk’s Wegovy weight-loss drug in smaller doses, or personalized ones, after the U.S. Food and Drug Administration sunset the mass compounding it had allowed. The company said that business is growing as well as for oral weight loss pills.

The company said revenue rose to $544.8 million in the June quarter. Analysts, on average, estimated second-quarter revenue at $551.6 million.

The company’s sequential growth has stalled. Hims said its GLP-1 business generated $190 million in online revenue during the second quarter, down from $230 million in the first quarter.

The company reported a quarterly profit of 17 cents per share, higher than the average analyst estimate of 15 cents, according to LSEG data.

Hims said the subscriber losses and more frequent and costly shipments have cut into profits.

Its shares fell to $56.64 in extended trading.

SUBSCRIBERS FALL

Hims’ subscriber figures were flat sequentially in the second quarter at about 2.4 million. On a quarterly basis, its revenue per subscriber fell to $74 from $84.

Chief Financial Officer Yemi Okupe said Hims expects revenue growth to accelerate during the fourth quarter, when it expects sales on its personalized dose copies to pick up.

“Given the regulatory dynamics, there was a pivot,” he said.

The company also said its sexual health business will recover in 2026, benefiting from the retention of existing consumers.

Hims and rival telehealth companies have launched programs that offer “personalized” versions of semaglutide, the active ingredient in Wegovy, at doses not accessible through the branded manufacturers.

Wegovy-maker Novo Nordisk has characterized mass personalization as illegal, and analysts have questioned whether Hims will be able to sustain its growth following the crackdown.

Hims maintained it expects its weight-loss business to make up $725 million of its projected $2.5 billion revenue this year.

The company’s wholesale unit, which represents non-prescription product sales to retailers through wholesale purchasing agreements, posted quarterly sales of nearly $8 million, down 10% from a year ago.

(Reporting by Amina Niasse in New York and Christy Santhosh in Bengaluru; Editing by Sriraj Kalluvila, Leroy Leo and Leslie Adler)