Hims & Hers Shows It’s More Than Just GLP-1 Drugs

Hims & Hers Health (NYSE:HIMS) reported first-quarter earnings on Monday after the market closed and rocketed 18% after revenue more than doubled, and it raised full-year guidance.

Revenue hit $586 million, up 111% year-over-year, while net income soared 345% to $49 million. Of longer term importance, though, could be the 38% increase in new members, which reached 2.4 million. Monthly online revenue per average subscriber also jumped 53% to $84, indicating higher per-user monetization. Because these are subscribers, not one-time users, this is potentially a lucrative source of recurring revenue for the telehealth platform. Q1 gross margins were 73%.

Hims & Hers realizes this, as it offered revenue and adjusted EBITDA guidance — for 2030 — indicating at least $6.5 billion in revenue and $1.3 billion in adjusted profits.

However, guidance for the full-year of 2025 was more muted with revenue estimates of $2.3 billion to $2.4 billion, unchanged from its fourth-quarter forecast. While that is still a 56% increase from a year ago, considering the strong growth Q1 produced one would expects HIMS to increase its outlook.

The skinny on GLP-1s

The telehealth platform was hit earlier this year by the Food & Drug Administration declaring there was no longer a shortage of Ozempic or Wegovy, the GLP-1 drugs sold by Novo Nordisk (NYSE:NVO) for the treatment of diabetes and obesity, respectively. 

Because Hims was able to sell compounded versions of the treatments, the FDA announcement crushed HIMS stock, cutting the stock nearly in half. It subsequently loss some 68% of its value, despite promising to sell personalized dosages of semaglutide. That’s a bit of an end-run around the regulations, as the generic versions of the branded drug can continue to be sold so long as they are personalized beyond the standard dosages commercially available.

More than just weight-loss

Yet GLP-1 drugs represented less than 20% of Hims & Hers revenue in 2024 while hair-loss products for both men and women enjoyed phenomenal growth. In Q4, Hims Derm saw 55% year-over-year subscriber growth while Hers Derm more than doubled. Hims provides generic Rogaine and Propecia.

Other major contributors to HIMS 69% revenue growth in 2024 include sexual health treatments, such as drugs for erectile dysfunction, such as generic Viagra, and mental health services and treatments, including generic Zoloft.

And just last week, Hims & Hers and Novo Nordisk announced an agreement for the telehealth platform to sell branded Wegovy on its site for $599 per month.

This is a significant opportunity because it derisks the potential for litigation from the Dutch pharmaceutical while bringing in a well-known brand. It also means Hims will likely stop selling its cheaper compounded versions as it transitions subscribers to the branded drug.

Hurdles still to get over

However, Wegovy has lost significant market share to rival Eli Lilly‘s (NYSE:LLY) Zepbound, because it is seen as a better, more efficacious GLP-1 drug. 

Zepbound’s active ingredient, tirzepetide, is known as a dual-agonist as it targets the GLP-1 receptors as well as the receptors. Semaglutide only targets the GLP-1 receptor. Lilly also recently reported positive late-stage clinical trial results for its oral weight-loss treatment orforglipron. It expects to gain FDA approval to market it later this year and is already stockpiling the drug so there are no shortages.

Key takeaway

Short-sellers may have contributed to the big bounce in HIMS stock. Some 30% of outstanding shares are sold short and traders may have been covering their positions following the heady numbers posted by the telehelath platform.

It’s possible management is just being conservative by not raising revenue guidance for 2025, but it could be it also sees demand somewhat more muted for the rest of the year. Regardless, Hims & Hers showed its business is more than just about weight-loss drugs and its products and services are proving popular among consumers looking for lower cost healthcare solutions.

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