The telehealth company posted a net loss of $92 million in the first quarter as its shift away from compounded weight loss drugs drove up costs
Hims & Hers swung to a net loss of $92.1 million in the first quarter of 2026, compared with net income of $49.5 million in the same period a year earlier, as the company pivoted away from cheaper compounded weight loss drugs toward branded GLP-1 medications.
Revenue rose 4% year over year to $608.1 million, the company said. Gross margin fell to 65% from 73% in the prior-year period, and adjusted EBITDA dropped to $44.3 million from $91.1 million.
The company recorded $33.5 million in restructuring and other related charges tied to the strategic shift in its U.S. weight loss offering, including inventory write-downs. Monthly revenue per average subscriber fell to $80 from $85 a year earlier, while the subscriber base grew 9% to almost 2.6 million.
U.S. revenue declined 8% year over year to $529.9 million, while rest-of-world revenue surged to $78.2 million from $7.3 million, driven by international expansion.
Shares of Hims & Hers were down about 15.7% in premarket trading Tuesday. Citi analysts called the guidance outlook "mixed," flagging that the company's second-quarter projections fell short of the bank's own forecasts, according to CNBC.
For the second quarter, Hims & Hers forecast revenue of $680 million to $700 million and adjusted EBITDA of $35 million to $55 million, the company said. Full-year 2026 revenue guidance was raised to a range of $2.8 billion to $3.0 billion, with adjusted EBITDA expected between $275 million and $350 million.
Looking ahead, the company flagged that heavier spending on overseas growth and technology could weigh on profitability.
Central to the transition is an arrangement announced in March under which Hims & Hers agreed to carry Wegovy, Novo Nordisk's branded GLP-1 medication, through its platform in exchange for pulling its promotion of lower-cost compounded alternatives. The shift has weighed on a business that had relied on compounded GLP-1s as a significant revenue driver.
"In the first quarter, we made a strategic pivot that expanded our assortment of branded GLP-1 products, and early demand signals show our consumer reach broadening," CFO Yemi Okupe said in a statement. The company said it expects growth to accelerate and maintained long-term targets of at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030.
