Hims and Hers Health’s latest results disappointed investors. Shares dropped 14.6% in premarket trading on Tuesday. The company posted a first-quarter loss, catching analysts off guard. They had expected a profit. Here’s a look at what happened, what the company’s guidance means for the future, and whether the stock’s sharp drop is justified.
The subscriber count rose to 2.6 million at the end of the first quarter of 2026, up 4% from 2.5 million at the end of the first quarter of the previous year.
The main issue is clear. Hims grew by offering compounded versions of GLP-1 weight loss drugs. Big pharmaceutical companies couldn’t meet demand. Now, that shortage has ended. In March, Novo Nordisk settled a patent lawsuit with Hims. The settlement requires Hims to sell only branded Ozempic and Wegovy on its platform. This change has created a revenue gap that Hims is now trying to close.
The company’s outlook was more positive than expected. Hims forecasted second-quarter revenue between $680 million and $700 million. This is higher than the $643 million analysts predicted. It also raised its full-year revenue guidance to $2.8 billion to $3.0 billion. This is up from the previous range of $2.7 billion to $2.9 billion. Wall Street had estimated $2.75 billion for the year. These forecasts do not include any potential revenue from the planned acquisition of Australian telehealth provider Eucalyptus. That deal is expected to close in mid-2026.
Peptides could be the company’s next growth area. The government recently eased rules on about a dozen peptides. They had been banned from compounding pharmacies since 2023. Hims has said it plans to enter the peptide market. This market includes products for weight loss, muscle recovery, skin care, and disease treatment. In late April, Morgan Stanley noted that the stock is caught between weak short-term results and optimism about new business areas. Monday’s earnings report highlighted this tension.
The first-quarter results expose a gap between market enthusiasm and Hims’ performance, casting doubt on the sustainability of the stock’s rally.
