Key Takeaways
Hims & Hers Health Inc. (NYSE: HIMS) reported a first-quarter loss that widely missed analyst estimates, yet its shares rose after the company boosted its full-year revenue forecast on the back of a strategic shift in its high-demand weight-loss business.
"Our shift to branded pharmaceutical solutions in weight loss is expected to drive significant subscriber growth," CEO Andrew Dudum said, referencing new collaborations to offer products from Novo Nordisk and Eli Lilly.
The telehealth company posted a net loss of $92 million, or -$0.40 per share, a stark reversal from a profit in the same period last year and a significant miss on the consensus forecast for a $0.01 profit. Revenue came in at $608 million, slightly below the $616.5 million analysts expected. Despite the misses, shares rose 3.11% in after-hours trading.
The significant Q1 loss was primarily driven by approximately $33 million in restructuring costs as the company pivots its weight-loss strategy. Hims & Hers is moving away from compounded GLP-1 products to offering branded pharmaceuticals, such as the Wegovy pill and pen from partner Novo Nordisk.
The company noted the move is already expanding its addressable market, with the platform on track to add over 100,000 new subscribers per month in the weight loss category. Despite the one-time costs, the company's subscriber base grew 9% year-over-year to nearly 2.6 million.
The market's positive after-hours reaction was largely tied to an upgraded outlook. Hims & Hers raised its full-year 2026 revenue guidance to a range of $2.8 billion to $3.0 billion, representing growth of 19% to 28% year-over-year. It also projects adjusted EBITDA between $275 million and $350 million for the year.
The guidance suggests management is confident that the growth from its new weight-loss strategy and international expansion will more than offset the near-term financial impact of the restructuring. Investors will watch the company's second-quarter results to see how the subscriber growth translates to the top and bottom lines.
This article is for informational purposes only and does not constitute investment advice.
