HIMS Stock Tumbles As Branded GLP-1 Pivot Triggers Margin Hit And One-Time Charges

• Management attributed part of the weakness to one-time items tied to a strategic pivot away from compounded weight-loss drugs, including approximately $33.5 million in restructuring charges.
• The company reiterated long-term 2030 targets of at least $6.5 billion in revenue and $1.3 billion in adjusted core profit. 
• CFO Yemi Okupe highlighted early positive signals from the pivot into branded GLP-1 drugs and the company’s scale.

Hims & Hers Health Inc. (HIMS) shares fell 13% in after-hours trading Monday after the telehealth and consumer health platform reported first-quarter results that missed Wall Street revenue expectations, swung to a sizable net loss, and showed margin pressure—even as the company raised its full-year 2026 guidance.

For the quarter ended March 31, 2026, Hims & Hers posted revenue of $608.1 million, a 4% increase from $586.0 million a year earlier, and below an analyst estimate of $616.85 million. Subscriber growth remained solid, reaching nearly 2.6 million (up 9% year-over-year), but monthly revenue per average subscriber slipped 6% to $80. Gross margin contracted to 65% from 73% in the prior-year period.

Diluted loss per share came in at $0.40 per share in the quarter, compared to an estimated $0.03 earnings per share. Management attributed part of the weakness to one-time items tied to a strategic pivot away from compounded weight-loss drugs, including approximately $33.5 million in restructuring charges and a $15 million legal settlement related to expanding its assortment of branded GLP-1 weight-loss products. U.S. revenue fell 8% to $529.9 million, while rest-of-world revenue surged 969% to $78.2 million amid international expansion.

Fresh Guidance

Despite the soft quarter, Hims & Hers raised its full-year 2026 outlook. It now expects revenue between $2.8 billion and $3.0 billion, up from a prior implied range around $2.7 billion–$2.9 billion, and adjusted core profit of $275 million to $350 million.

For the second quarter, it guided revenue to $680 million–$700 million and adjusted core profit to $35 million–$55 million. The updated guidance excludes any contribution from the pending acquisition of Eucalyptus, expected to close mid-2026.

Pivot And Aftermath

CFO Yemi Okupe highlighted early positive signals from the pivot into branded GLP-1 drugs and the company’s scale. “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 meaningfully,” he said. “With nearly 2.6 million subscribers across a diverse breadth of specialties, we have the scale to invest in technology and operations to leverage our closed-loop ecosystem.” The company reiterated long-term 2030 targets of at least $6.5 billion in revenue and $1.3 billion in adjusted core profit.

Hims & Hers Health Inc. executed a strategic pivot in the first quarter of 2026, reorienting its U.S. weight-loss offering to prioritize branded GLP-1 medications while sharply curtailing compounded versions. The company, which had previously emphasized compounded GLP-1 drugs domestically, expanded its assortment of branded products to align the U.S. business with the approach it already uses in international markets, limiting compounded GLP-1 access on its platform to a much smaller scale.

How Did HIMS Retail Traders React?

On Stocktwits, retail sentiment around HIMS jumped from 'bearish' to 'extremely bullish' territory over the past 24 hours, while message volume increased from 'low' to 'high' levels.

A Stocktwits user termed the stock a falling knife.

Another user expressed disappointment over the earnings report.

HIMS stock has fallen 47% over the past 12 months. 

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