Hims & Hers posts wider loss as branded weight-loss drugs lift costs

Hims & Hers Health reported a wider-than-expected second-quarter loss on Monday, as its strategic pivot toward branded weight-loss drugs drove up costs. The company's shares fell 6% in extended trading following the announcement.

The telehealth provider posted a net loss of 37 cents per share for the quarter, significantly wider than the 1-cent loss analysts had projected, according to LSEG data. The company attributed the shortfall partly to $4.6 million in restructuring costs tied to the transition to branded GLP-1 treatments.

Despite the loss, Hims raised its full-year revenue outlook to between $3.1 billion and $3.3 billion, up from its earlier forecast of $2.8 billion to $3 billion. The revised guidance includes a contribution from Eucalyptus, an Australian digital health firm Hims agreed to acquire in February.

Chief Financial Officer Yemi Okupe said the new figures were ahead of most analyst targets, even excluding Eucalyptus. "Even if you pull out Eucalyptus (from the guidance), the domestic business and the existing international business were already ahead of our guidance range," Okupe said.

The company acknowledged that gross margins will likely remain below historical levels as it accelerates its weight-loss and international offerings. Executives expressed confidence in the long-term strategy, with Okupe saying the firm has the ability to "set the foundation for strong cash flows in the future."

Investors offered a measured response. Paul Cerro, chief investment officer at Cedar Grove Capital Management, which holds Hims shares, noted that international markets are often less profitable than the U.S. but could still drive revenue growth over time. "It's not that it's a bad business. It's just not as lucrative," Cerro said.

Hims reiterated its goal of reaching $6.5 billion in revenue by 2030. Raul Shah, chief investment officer at DocShah Financial, predicted the company would return to historical profit margins within five years.

The company's subscriber base grew 19% year-over-year to nearly 2.9 million in the second quarter. Monthly online revenue per average subscriber rose 21% to $92.

Hims has been investing in diagnostics and lab infrastructure to support its personalized care push, and earlier this year acquired a California-based peptide facility. The company is also testing ingredients used to compound peptide treatments, positioning itself to scale these products if U.S. regulations allow. An FDA advisory panel recently recommended reversing restrictions on the manufacturing of six peptides, despite staff warnings about limited evidence of their safety and effectiveness.