Online health and wellness company Hims & Hers posted a $92 million loss in the first quarter as it shifts its business from selling compounded weight loss drugs to branded GLP-1 medications.
During the same period a year ago, Hims & Hers posted a profit of $49.5 million.
The company brought in revenue of $608 million in Q1, up 4% year-over-year. The company's stock was down about 15% in mid-day trading on Tuesday following the unexpected Q1 loss. Revenue also missed Wall Street analysts' expectations. Hims & Hers reported a loss of 40 cents per share in Q1 2026 compared to the Zacks Consensus Estimate of EPS of a profit of 4 cents. Revenue also missed the Zacks Consensus Estimate by 1.9%.
In March, the company announced a strategic pivot to move away from cheaper compounded GLP-1 drugs to expand its assortment of branded drugs. That shift was part of an arrangement with Novo Nordisk to offer multiple dosages of Ozempic injections as well as Wegovy injectables and oral medications.
As part of the deal, Novo said it will dismiss its lawsuit against the company. Earlier this year, Hims & Hers took heat from the pharmaceutical manufacturer and federal regulators after announcing plans to launch a knockoff of Novo's oral pill. It backed down from those plans under pressure.
In April, the company said that eligible users can now access the full range of U.S. Food and Drug Administration (FDA)-approved GLP-1 medications on its platform. Providers on the Hims & Hers platform can now send prescriptions of Eli Lily’s Zepbound, Mounjaro and oral Foundayo to the LillyDirect pharmacy, allowing users to access self-pay pricing for Hims & Hers customers.
But this transition to branded weight loss meds drove up costs in Q1.
"We made a deliberate strategic pivot within our weight loss specialty, one that we knew would create near-term financial noise to unlock immense potential for the platform to accelerate at scale," Yemi Okupe, chief financial officer at Hims & Hers, told investors during the company's Q1 earnings call on Monday.
"Prior to our strategic pivot, we made meaningful investment[s] in product, technology and other capabilities to support our GLP-1 compounding supply chain," he said.
The company incurred $33 million of restructuring costs in Q1, primarily consisting of the write-downs related to its compounded GLP-1 supply chain "that now faces risk of obsolescence," Okupe said during the call.
"Q1 results were impacted by nonrecurring restructuring costs related to the strategic pivot in our weight loss specialty, transaction costs related to M&A activity and legal costs," he said.
But the company expects growth to accelerate as a result of this strategic pivot in its weight loss business and executives expect Hims & Hers to hit its target of at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030.
Hims & Hers expects to return to net profitability in 2027, Okupe said.
"We believe the pivot that we made to prioritize branded products within our weight loss specialty will be transformational for the Hims & Hers platform, and early success signals are already emerging," he said.
"With the introduction of branded products such as the Wegovy pill and Wegovy pen, we are already seeing our addressable market expand significantly. Within weeks of this launch, we are on track to add north of 100,000 new subscribers per month within our weight loss specialty," Okupe told investors.
Hims & Hers CEO Andrew Dudum told investors and analysts on the call that, within six weeks of introducing direct access to Novo Nordisk's GLP-1 products on its platform, the company has fulfilled more than 125,000 shipments for Wegovy products.
Hims & Hers subscribers on the platform grew to nearly 2.6 million by the end of Q1, up 9% year-over-year. Monthly online revenue per average subscriber dropped to $80 compared to $85 in Q1 2025.
Gross margin was 65% for the first quarter of 2026 compared to 73% for the first quarter of 2025. Adjusted EBITDA was $44.3 million for Q1 compared to $91.1 million for the first quarter of 2025.
The company's U.S. revenue dipped 8% to $530 million in Q1, while international revenue jumped nearly tenfold to $78 million in the quarter. The company 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.
In February, Hims & Hers announced plans to acquire Eucalyptus, Australia’s largest digital health provider, for $1.15 billion.
Dudum told investors that the company's U.S. business is positioned to accelerate as it introduces new specialties and shifts its weight loss strategy toward a "globally unified approach."
"2026 is a defining year for Hims & Hers. We’re not just growing, we’re pulling away from the field on our path to becoming the world’s largest consumer health platform," he said. "As we exit the first quarter, our domestic business is accelerating, we’re expanding into new categories and countries, and more people than ever are relying on us for access to personal, data-driven care."
Hims & Hers has ambitions to become the "default health and wellness provider in the U.S.," Okupe said. "Our confidence is high that we can replicate the success and similarly established category leadership in key international markets such as Canada, the U.K., Australia and other European countries. The early signs are promising, giving us greater conviction in the long-term trajectory of the business," he noted.
The company is seeing growth outside its weight loss business in specialties such as testosterone, menopause and labs. Hims & Hers launched its direct-to-consumer lab testing program for health biomarker testing back in November. Last week, it launched an artificial intelligence agent, called Labs AI, embedded in its platform to help interpret biomarker lab results and provide users personalized insights about their health.
The company also plans to roll out an AI weight loss companion that will "proactively reach out at the right moment to help customers hit their desired outcomes and prompt clinician engagement when their expertise is needed," Mo Elshenawy, chief technology officer at Hims & Hers, told investors and analysts on the earnings call.
The company is also investing in comprehensive data, diagnostics and technology infrastructure to enable more personalized services. In Q1, it completed the acquisition of YourBio Health, Boston-based pioneer in capillary whole blood sampling technology.
"We expect to continue investing in technology in the near-term as the benefits cascade across multiple areas of the platform. More robust infrastructure accelerates the pace at which we are able to bring new features and offerings to our consumers," Okupe said.
"With tens of millions of customer touch points annually in the closed-loop provider network, we are amassing a powerful data set that is becoming harder to replicate. These investments are enabling faster, more efficient geographic and product expansion, more valuable customer interactions and deeper platform engagement," Dudum told investors.
The company also has an eye on emerging categories like peptides, banking on a regulatory push to expand peptide access.
The company acquired a California-based peptide manufacturing facility in February 2025, which gives it a fully verticalized U.S. supply chain, executives said.
"By bringing the API manufacturing domestic, we can control far more of the process end to end, giving us advantages in quality and purity and reliability and ultimately, in brand trust that I think will be incredibly difficult for others to match and I think increasingly important as these treatments and therapeutics become more mass market," Dudum said during the call.
The FDA's Pharmacy Compounding Advisory Committee has been slated for an upcoming discussion on whether certain peptides from compounding pharmacies should be cleared for use, signaling a potential reversal of a 2023 decision by the agency, as Fierce Pharma reports.
"Our medical team sees meaningful potential in several peptide therapies, and we are pleased to see the FDA moving to more clearly define what is safe and allowable here," Dudum said.
The company projects revenue for the second quarter in the range of $680 million to $700 million, reflecting an uptick of 25% to 28% year over year.
Hims & Hers raised its full-year 2026 revenue guidance to a range of $2.8 billion to $3 billion, representing growth of 19% to 28% from 2025 levels, and updated adjusted EBITDA guidance to a range of $275 million to $350 million.