Hims & Hers posts $92M loss in shift from compounded weight loss drugs
In the first quarter of 2025, Hims & Hers Health experienced a net loss of $92 million, marking a significant decline from previous profitability as the telehealth firm shifts away from compounded weight loss medications. This transition has led to increased expenses, particularly in marketing and infrastructure to accommodate a wider range of products. Previously, the company thrived on heightened demand for affordable compounded versions of well-known GLP-1 drugs, such as semaglutide. However, regulatory challenges and supply chain issues have necessitated a strategic pivot. CEO Andrew Dudum highlighted a commitment to establishing a sustainable business model beyond the weight loss drug surge. Following the earnings announcement, Hims & Hers shares dropped in after-hours trading, reflecting the volatility in the rapidly evolving telehealth industry.
Key facts
- Hims & Hers posted a net loss of $92 million in Q1 2025.
- The loss is attributed to a strategic pivot away from compounded weight loss drugs.
- The company previously saw strong demand for cheaper GLP-1 alternatives.
- Regulatory and supply chain issues prompted the shift.
- CEO Andrew Dudum highlighted long-term sustainability goals.
- Shares dropped in after-hours trading after the announcement.
- The telehealth sector faces volatility from regulatory changes.
- Costs increased due to marketing and infrastructure investments.
Entities
Institutions
- Hims & Hers Health
Sources
- Quartz —