Hims & Hers' Strategic Moves to Secure Long-Term Growth in the Weight-Loss Market

The weight-loss market has become a battleground for innovation, and Hims & Hers Health, Inc. (HIMS) is positioning itself as a formidable contender. With 2024 revenue surging to $1.5 billion-a 69% year-over-year increase-and a subscriber base of 2.2 million, the company has demonstrated its ability to capitalize on the growing demand for accessible healthcare solutions according to the financial report. However, as competition intensifies and regulatory scrutiny tightens, the question remains: Can Hims & Hers sustain its momentum? Let's dissect its strategic moves to determine whether they're a recipe for long-term success.

Financial Performance: A Foundation of Growth

Hims & Hers' 2024 results were nothing short of impressive. The company's weight-loss division alone generated $225 million in revenue, driven by the introduction of compounded GLP-1 medications like semaglutide in May 2024 according to CNBC reporting. This growth was further amplified in Q2 2025, where revenue hit $544.8 million, a 73% year-over-year jump, with subscribers expanding to 2.4 million. The company's 2025 guidance-$2.3 billion to $2.4 billion in revenue-reflects confidence in its ability to maintain this trajectory, even as it phases out compounded semaglutide by Q1 2025 due to FDA restrictions according to earnings data.

Strategic Diversification: Beyond GLP-1

Hims & Hers' pivot from compounded semaglutide to oral medications and generic liraglutide is a calculated move to mitigate regulatory risks while maintaining affordability. According to Bloomberg analysis, the company expects its weight-loss offerings (excluding compounded semaglutide) to generate at least $725 million in 2025. This shift is critical as Novo Nordisk and Eli Lilly, the dominant players in GLP-1 drugs, have slashed prices, threatening Hims & Hers' pricing edge.

But the company isn't relying solely on GLP-1. It's expanding into adjacent markets, such as menopause and perimenopause treatment plans, which address unmet needs in women's health. This diversification not only broadens its customer base but also insulates it from sector-specific volatility. Additionally, Hims & Hers is investing in lab testing and pharmacy infrastructure to enhance personalized care, a move that could deepen customer loyalty.

Global Expansion: A New Frontier

Hims & Hers' 2026 entry into Canada represents a bold step. Timing the launch with the first global availability of generic semaglutide, the company aims to tackle Canada's obesity crisis, where 63% of adults are overweight or obese. This expansion follows the acquisition of ZAVA, a European digital health platform, and underscores Hims & Hers' ambition to become a global healthcare leader. By leveraging its existing infrastructure and brand equity, the company is well-positioned to replicate its U.S. success abroad.

Navigating Challenges: Regulation and Competition

Despite its strengths, Hims & Hers faces headwinds. The FDA's crackdown on compounded GLP-1 medications and the FTC's investigations into marketing practices could disrupt operations. Meanwhile, Novo Nordisk and Eli Lilly's price cuts have eroded margins, forcing Hims & Hers to innovate rapidly. However, its first-mover advantage in the direct-to-consumer (DTC) healthcare space and strong brand recognition provide a buffer. As CEO Andrew Dudum stated, the company is shifting from addressing "single issues" to proactive health management-a strategy that could differentiate it in a crowded market.

Sustainability: Can It Last?

The key to Hims & Hers' long-term success lies in its ability to balance innovation with cost efficiency. While its 2025 revenue guidance remains intact despite challenges, the company must continue to adapt. For instance, its focus on international markets and new specialties like dermatology and sexual health could offset slowing growth in core segments. Moreover, its emphasis on personalized care aligns with broader healthcare trends, suggesting a durable competitive edge.

Conclusion: A High-Stakes Bet

Hims & Hers has built a compelling narrative around democratizing healthcare, but the weight-loss market is no longer a blue ocean. Its strategic moves-diversifying product offerings, expanding globally, and investing in infrastructure-are well-timed and data-driven. However, investors must weigh the risks of regulatory overreach and pricing pressures from big pharma. For now, the company's guidance and subscriber growth suggest it's on the right track. But as the market evolves, so too must Hims & Hers' playbook.