Hims & Hers: High Growth Meets High Scrutiny

Hims & Hers Health Inc. (NYSE: HIMS) delivered second-quarter revenue of $544.8 million, a 73% increase compared to the prior year. While this growth was substantial, it fell short of FactSet’s consensus forecast of $552 million.

Earnings, however, told a different story. Adjusted earnings per share reached $0.19, well ahead of the $0.15 expected, while adjusted EBITDA came in at $82.2 million. Both figures exceeded analyst estimates, signalling that operational efficiency and strong cost discipline are helping offset revenue volatility. Net income rose to $42.5 million, tripling year-over-year.

Management reiterated full-year 2025 guidance for revenue of $2.3 billion to $2.4 billion and adjusted EBITDA of $295 million to $335 million. The forward guidance reassured investors that despite a revenue shortfall in the second quarter, the long-term trajectory remains intact. 1

Market Reaction: Sharp Pullback After a Strong Rally

On earnings day on the 5th of August, Hims shares fell 12.4% to close at $55.52. Losses extended for several weeks as investors absorbed the earnings results, finding support at $40.78 in early September.

After a significant rally earlier in the year, the pullback appears to reflect profit-taking and rebalancing rather than a fundamental reassessment of the business. The price rebounded throughout September, and the stock is up more than 137% year-to-date.

GLP-1 Transition and the Role of Personalization

The most closely watched business line remains the company’s GLP-1 weight-loss and diabetes treatments. Revenue from this segment reached approximately $190 million in Q2, down from $230 million in the prior quarter. This drop could be attributed to the transition from 503B commercial volumes toward personalized 503A compounded formulations, which has temporarily slowed top-line momentum.

Despite this, underlying subscriber trends remain robust. The company reported a 31% year-over-year increase in subscribers to 2.4 million. Average revenue per subscriber rose 30%, reflecting cross-selling and higher-value treatment plans. Multi-condition personalized treatment plans grew nearly 170% to 500K, underlining the success of Hims’ strategy to keep customers engaged across multiple healthcare needs. 2

Regulatory Reality Check for Hims’ GLP-1 Ambitions

Regulatory developments are central to the investment case because a meaningful portion of Hims’ near-term revenue has been derived from compounded GLP-1 formulations, an area that has drawn active interest from the U.S. Food and Drug Administration (FDA).

The regulatory backdrop is the single most important swing factor for Hims & Hers Health. The company’s near-term growth has been heavily influenced by compounded GLP-1 formulations, a category that sits at the intersection of innovation and regulation. The FDA’s tightening stance on GLP-1 compounding has created both friction and opportunity. On one hand, the move toward personalized 503A formulations demonstrates Hims’ agility and willingness to play within changing rules. On the other, it introduces near-term revenue noise and a heavier compliance burden that shouldn’t be underestimated.

What’s interesting here is how much of this debate isn’t about demand but it’s about access. The appetite for GLP-1 therapies is undeniable, but how these treatments are sourced, compounded, and marketed will define which players endure. The recent dismissal of Eli Lilly’s lawsuit against Willow Health temporarily eased fears of an industry-wide clampdown, yet the FDA’s warning letters to Hims regarding compounded semaglutide serve as a reminder that regulatory comfort remains fragile. For investors, clarity on where the FDA ultimately lands will likely dictate how sustainable the company’s GLP-1 driven revenue can be.

Taken together, regulatory clarity (or the lack of it) will likely be the single most important determinant of whether GLP-1 revenue can be maintained at historical rates or remains volatile as Hims repositions product mix.

Strategic Catalysts: Building a Data-Driven Healthcare Ecosystem

Beyond weight-loss treatments, Hims is investing in structural growth drivers designed to extend its business model. Key catalysts include:

1. Expansion into diagnostics and laboratory testing, which allows the company to vertically integrate and capture more health data from each user.

2. Application of artificial intelligence to create a continuously learning care platform, aimed at improving retention, boosting margins, and lowering long-term acquisition costs.

3. The Zava acquisition in Europe, which provides a scalable template for international expansion in highly regulated healthcare markets.

4. Development of a subscription-based preventative health membership model that integrates diagnostics, personalized treatments, and wellness support into a comprehensive offering.

If these pillars scale as envisioned, the company could generate sustainably higher average revenue per user (ARPU), better retention and broader revenue diversity, which is a pathway to justify premium multiples. That said, execution complexity rises with verticalization and cross-border expansion, creating integration risk.