Hims & Hers executives struck a confident tone about the company's growth prospects Monday as it launches new specialties and rapidly expands into international markets.
But investors are concerned about the company's weaker-than-expected fourth-quarter results, a soft outlook for the first quarter and regulatory risks, as Hims & Hers faces fallout from ongoing scrutiny of its compounded weight loss drugs. BTIG Research downgraded Hims & Hers from "buy" to "neutral" following the company's fourth-quarter earnings results on Monday.
Shares of the online telehealth company fell 8.5% to $14.20 in extended trading on Monday. The stock is down 52% year to date.
Hims & Hers caused a firestorm earlier this month when it revealed that it planned to launch a knockoff version of Novo Nordisk's new oral weight-loss medicine. But the reaction to the move caused the company to quickly retreat. The maker of Wegovy filed a lawsuit against the company over patent infringement.
The Department of Health and Human Services General Counsel Mike Stuart also announced on X that his agency had referred the online health and wellness company to the Department of Justice (DOJ) for investigation.
Hims & Hers is also facing an investigation from the Securities and Exchange Commission (SEC), as revealed in a regulatory filing earlier this week.
The company received a letter from the staff of the SEC's Division of Enforcement notifying the company of an investigation and requesting it preserve certain documents and information concerning its public statements and disclosures regarding compounded semaglutide and related business relationships, the filing said. "The company is cooperating with the SEC investigation but is unable to predict when or how this matter will be concluded. Therefore, the financial impact of the SEC Investigation cannot be predicted at this time," Hims & Hers said in the 10-K filing.
Hims & Hers CEO Andrew Dudum addressed investor concerns during the company's fourth-quarter earnings call, but declined to comment on "ongoing" conversations with the DOJ and FDA.
"As we've talked about within the FDA in the past, we feel very strongly that they play an important role in the safety of consumers and are happy to be working with them to figure out the areas of concern," he said.
Dudum also touted the strength of Hims & Hers' weight loss business. "We believe there's a really durable weight business, even if you think you're in a kind of draconian scenario of compounding GLP-1s not being there. And I think even more so, when you look into the next year or two, there's an expanding assortment of therapies that I think are going to be very important to patients, and we're going to have to keep evolving that offering in the category just like we do in other categories to make sure that we've got great treatments that patients are really looking for," he said.
He added, "I think that's just going to be the evolution of this category where you're going to have more and more options, they're going to be different price points, they're going to have different side effect profiles. They're going to be known by different providers. And ultimately, I think for us, as we've said, across all of our categories, we've seen breadth really matter."
Regarding the launch and then pullback of its semaglutide-containing pill, Dudum said, "I think we believe that the pill was a continuation of the strategy to broaden greater personalized options for patients on the platform and spend many months working on that. I think we pulled it back to prioritize, honestly, just engagement and the relationships with the ecosystem stakeholders. We talked to quite a few of them on launch and understood their dynamics and chose to prioritize them in those conversations and so decided to pull it."
At the same time, Hims & Hers executives downplayed the impact of the compounded GLP-1 business on the company's future growth.
While GLP-1s have accelerated Hims & Hers' trajectory, the majority of revenue and cash flow generation across its portfolio is generated from its non-GLP-1 offerings, Yemi Okupe, Hims & Hers' chief financial officer, told investors Monday.
"Higher margins from our more tenured offerings will be instrumental in providing resources necessary for investment to scale the next wave of specialties, inclusive of weight loss, lab testing, low testosterone and menopausal support," he said.
The company's weight loss offering reached a $100 million revenue run rate in less than seven months after launch, excluding any contributions from compounded GLP-1s, Dudum said.
Towards the end of 2025, the company expanded its treatments and offerings, including a direct-to-consumer lab testing platform and hormone therapies with support for low testosterone, menopause and perimenopause. Last year, the company acquired YourBio Health, a Boston-based pioneer in capillary whole blood sampling technology. Currently, the company is addressing areas such as cardiovascular risk, metabolic dysfunction and hormone levels, and plans to expand into performance, recovery and sleep, Dudum noted.
Hims & Hers' subscribers grew to over 2.5 million in 2025, executives said.
The company plans to invest in scaling new specialties, building out its technology and infrastructure and expanding internationally, Okupe said. The company is maintaining its 2030 targets of at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA, he noted.
In the fourth quarter, Hims & Hers' revenue reached $618 million, up 28% from $481 million in the same period a year ago. But that missed analysts' expectations of $619 million in fourth-quarter revenue.
The company reported fourth-quarter earnings per share of 8 cents, which beat analysts' projections of 4 cents per share. Hims & Hers brought in $20.6 million in profit in the fourth quarter, down from $26 million for the fourth quarter of 2024.
For 2025, Hims & Hers hit $2.35 billion in revenue, up 59% from $1.48 million in 2024. The company reported net income of $128.4 million for the year, compared to $126 million for 2024.
The company's first-quarter guidance also fell short of analysts' estimates. The company expects first-quarter revenue between $600 million and $625 million, below the $653 million consensus estimate.
For the full 2026, the company is guiding toward revenue of $2.7 billion to $2.9 billion, compared to the $2.74 billion analysts are currently expecting.
Hims & Hers is investing heavily to expand its business into international markets. Last year, it acquired Zava to deepen its presence in the U.K. while marking its entry into Germany, France, Ireland and Spain. The deal to acquire Livewell extended the company's presence into Canada, one of the first markets that is expected to have access to generic semaglutide.
Last week, Hims & Hers announced plans to acquire Eucalyptus. The company said the pickup opens the door to millions of additional customers globally via new expansions into Eucalyptus’ markets—Australia and Japan, which will be new entries for Hims & Hers, and the U.K., Germany and Canada, where it already has footholds.
"International expansion will perhaps be one of our most significant areas of investment in 2026 and the coming years," Okupe said. "Strong free cash flow and adjusted EBITDA from tenured specialties in our domestic operations will allow us to continue expanding specialties while also concurrently growing our subscriber base across strategic markets. In the near term, we expect many of these international markets to run at breakeven, but in the medium to long term, to become meaningful growth in profitability vectors as we optimize and realize economies of scale, similar to what we achieved in the U.S."