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Hims & Hers Reports Q2 Revenue Miss, Issues Cautious Guidance Amid GLP-1 Scrutiny
ByAinvest
Monday, Aug 4, 2025 5:08 pm ET1min read
Hims & Hers Health shares fell 10% after Q2 revenue missed estimates at $544.8 million, and the company issued cautious guidance due to legal and regulatory scrutiny over its GLP-1 compounded weight-loss drug offerings. The stock has declined recently as investor focus has sharpened around its GLP-1 business. Novo Nordisk cut its annual sales forecast, blaming weaker US demand for GLP-1 drugs partly on compounded alternatives.
Hims & Hers Health Inc. (Hims & Hers) reported a 10% decline in its stock price after hours on Monday, following the announcement of its second-quarter revenue. The telehealth company's revenue for the quarter came in at $544.8 million, falling short of the consensus estimate of $549.9 million [1].The company's shares have been under pressure due to increased investor focus on its GLP-1 business, which involves the sale of compounded versions of semaglutide, the active ingredient in Novo Nordisk's (NVO) blockbuster drugs Wegovy and Ozempic. Novo Nordisk recently terminated a short-lived partnership with Hims & Hers and has filed lawsuits targeting the sale of compounded semaglutide, citing safety and legal concerns [1].
Hims & Hers' adjusted earnings per share (EPS) of $0.17 beat expectations by 2 cents. The company forecasted third-quarter revenue between $570 million and $590 million, bracketing the $584.2 million analyst consensus. Full-year revenue is expected to range between $2.3 billion and $2.4 billion, broadly in line with the $2.36 billion analysts were looking for [1].
Novo Nordisk, which makes the original GLP-1 drugs, has also been negatively impacted by the availability of compounded alternatives. The company recently cut its annual sales forecast, citing weaker U.S. demand for its GLP-1 drugs, partly due to the widespread availability of compounded alternatives [2].
The ongoing legal and regulatory scrutiny over Hims & Hers' compounded weight-loss drug offerings is likely to continue to weigh on the company's stock price. Investors will be closely watching the company's future performance and guidance to gauge the impact of these issues on its business.
References:
[1] https://finance.yahoo.com/news/hims-hers-slides-q2-revenue-205009022.html
[2] https://finance.yahoo.com/news/novo-nordisk-q2-earnings-investors-154900689.html
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