Hims & Hers posts $92 million quarterly loss as it leaves compounded GLP-1s

Hims & Hers reported a net loss of $92 million for the first quarter of 2026, compared with a $49.5 million profit in the same quarter a year earlier, as it moved its weight loss business away from compounded semaglutide toward branded GLP-1 medications ^[1]. Revenue rose 4% to $608 million, missing analyst expectations by 1.9%, and the company's stock fell about 15% in mid-day trading on May 12 ^[1]. The loss amounted to 40 cents per share; analysts had expected a profit of 4 cents per share ^[1].

The pivot and what it cost

In March, the company announced a strategic pivot away from cheaper compounded GLP-1 drugs, tied to an arrangement with Novo Nordisk covering multiple dosages of Ozempic injections plus Wegovy injectables and oral medications ^[1]. As part of the deal, Novo Nordisk said it would dismiss its lawsuit against Hims & Hers ^[1]. Earlier this year, the company had announced plans to launch a copy of Novo's oral pill and backed down under pressure from the drugmaker and federal regulators ^[1]. In April, Hims & Hers said eligible users could access the full range of FDA-approved GLP-1 medications on its platform, with prescriptions for Zepbound and Mounjaro (tirzepatide) and oral Foundayo (orforglipron) sent to the LillyDirect pharmacy under self-pay pricing ^[1].

The change pushed up costs. Hims & Hers recorded $33 million in restructuring costs in the quarter, which chief financial officer Yemi Okupe said were primarily write-downs related to its compounded GLP-1 supply chain, which "now faces risk of obsolescence" ^[1]. Okupe said results were also affected by transaction costs from mergers and acquisitions and by legal costs ^[1].

Gross margin fell to 65% in the first quarter of 2026 from 73% a year earlier, and adjusted EBITDA fell to $44.3 million from $91.1 million ^[1]. Monthly online revenue per average subscriber slipped to $80 from $85 ^[1]. Subscribers grew 9% year over year to nearly 2.6 million ^[1]. U.S. revenue dropped 8% to $530 million, while international revenue rose nearly tenfold to $78 million ^[1].

What the company says

"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," Okupe told investors on the earnings call ^[1]. He said the company had made meaningful investments in product and technology for its GLP-1 compounding supply chain before the pivot ^[1].

CEO Andrew Dudum said that within six weeks of adding direct access to Novo Nordisk's GLP-1 products, the company had fulfilled more than 125,000 shipments for Wegovy products ^[1]. Okupe said Hims & Hers is on track to add more than 100,000 new subscribers per month in its weight loss specialty within weeks of launching branded products such as the Wegovy pill and Wegovy pen ^[1].

Why it matters for patients

Compounded semaglutide has been a lower-cost option for people who pay cash, and one of the larger sellers of it is now winding that part of its business down and writing off the supply chain behind it ^[1]. Hims & Hers now routes branded prescriptions through Novo Nordisk products and LillyDirect self-pay pricing, which changes where customers fill prescriptions and what they pay ^[1].

The quarterly figures show the cost side of that shift inside the company: a lower gross margin and less revenue per average subscriber than a year ago ^[1]. What the change means for any individual patient's bill has not been disclosed, and the company has not reported specific prices charged to its customers for the branded drugs ^[1]. It is also not yet known what happens to compounded prescriptions already in progress with the company, or whether other telehealth sellers are making similar changes ^[1].

What happens next

Hims & Hers guided second-quarter revenue to $680 million to $700 million, an increase of 25% to 28% year over year, and raised full-year 2026 revenue guidance to $2.8 billion to $3 billion ^[1]. Adjusted EBITDA guidance for the year is $275 million to $350 million ^[1].

Okupe said the company expects to return to net profitability in 2027 and is targeting at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030 ^[1]. Separately, the FDA's Pharmacy Compounding Advisory Committee is slated to discuss whether certain peptides from compounding pharmacies should be cleared for use, which the company described as a potential reversal of a 2023 agency decision ^[1].