Hims & Hers Q2 GLP-1 Revenue Falls Short of Expectations.

Hims & Hers Health reported Q2 results showing a larger-than-expected hiccup in GLP-1 revenue, causing a -13% drop in the telehealth platform's stock. The company's GLP-1 strategy is on dubious grounds, as the revenue miss was unexpected and the stock market reacted negatively. This may indicate challenges in the company's strategy or execution.

Hims & Hers Health, Inc. (HIMS) reported its second-quarter 2025 earnings on August 4, 2025, revealing a larger-than-expected dip in GLP-1 revenue. This news led to a significant drop in the company's stock, with shares falling by approximately 13% in after-hours trading [1].

Despite the revenue miss, the company reported strong growth in core areas. Revenue jumped 73% year-over-year to $544.8 million, but it fell short of Wall Street's expectations of $552 million. The company also delivered adjusted earnings per share (EPS) of 17 cents, beating the 15 cents estimate, and adjusted EBITDA of $82 million, more than doubling from the previous year's $39.3 million [2].

The stock market's negative reaction to the GLP-1 revenue miss suggests growing concerns about the company's strategy and execution in this area. Hims & Hers has faced scrutiny for distributing cheaper, unapproved versions of popular diabetes and weight-loss drugs, including GLP-1 therapies. While the FDA had previously resolved supply issues, some telehealth players, including Hims, continue to offer personalized doses [2].

The company's guidance for the third quarter also fell short of expectations, with EBITDA guidance ($60M-$70M) falling short of StreetAccount's $77.1 million forecast. Hims & Hers will need to convince investors that its fast growth won't be overshadowed by regulatory headwinds [2].

Analysts remain divided on the future of HIMS stock. The average target price for Hims & Hers Health Inc. is $48.49, with a high estimate of $85.00 and a low estimate of $28.00. GuruFocus estimates the company's fair value at $36.01 [2].

Hims & Hers Health faces ongoing challenges in its GLP-1 strategy and execution. The company must address these concerns and provide clear evidence of its long-term growth prospects to regain investor confidence.

References:
[1] https://stockanalysis.com/stocks/hims/
[2] https://www.tradingview.com/news/gurufocus:259e0cac6094b:0-hims-hers-stock-nosedives-after-q2-revenue-miss-despite-73-growth/