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Hims & Hers’ Weight-Loss Pivot Is Costly Up Front
The telehealth firm widened its Q2 loss as branded GLP-1 drugs and international expansion pressured margins, even as it raised its full-year revenue outlook
<img src="https://finimize.com/_next/image?url=https%3A%2F%2Ffinimize-img.imgix.net%2Fhttps%253A%252F%252Fchivas-assets.s3-eu-west-1.amazonaws.com%252Fstatic%252Fimages%252Ftag_reuters_com_2026_newsml_L4N4471EW_1166604558.jpeg%3Fixlib%3Dpython-3.1.2%26s%3Df247a335c1bcda675d1bef746fd898ba&w=3840&q=75" alt="Hims & Hers Bets On Branded Weight-Loss Drugs“>
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What’s going on here?
Hims & Hers widened its Q2 loss as it leaned harder into branded GLP-1 weight-loss drugs and expanded internationally, even while lifting its full-year revenue outlook
What does this mean?
The telehealth firm is still growing: it ended Q2 with nearly 2.9 million subscribers, up 19% year-on-year, and average monthly online revenue per subscriber rose 21% to $92. But it’s paying for that growth in the near term, posting a 37-cent-per-share loss versus analysts’ 1-cent loss estimate (per LSEG) and taking $4.6 million in restructuring costs tied to the shift toward branded GLP-1s. Management said gross margin should stay below historical levels as it scales thes
e offerings and builds “personalized care” infrastructure, including diagnostics, labs, and a peptide facility it bought earlier this year. It also raised full-year revenue guidance to $3.1 billion-$3.3 billion from $2.8 billion-$3.0 billion, partly reflecting its planned acquisition of Australia-based Eucalyptus, which Reuters noted many analysts haven’t folded into their models. That mix of upfront costs, acquisition optics, and regulatory uncertainty around compounded peptide treatments is why the long-term targets (profitability in 2027 and $6.5 billion of revenue by 2030) are being weighed against today’s margin pressure, especially outside the US.
Why should I care?
For markets:Hims’ $3.1 billion-$3.3 billion guide isn’t the same scoreboard many analysts are using
When a company raises guidance but the number includes revenue that many analyst models exclude, comparisons get messy. If Eucalyptus isn’t in consensus forecasts yet, reported results can look like a “beat” against stale estimates even if the underlying story hasn’t improved much. That shifts the post-earnings debate from pure execution to model cleanup: analysts have to separate organic growth from acquired growth and then revisit margin assumptions for branded GLP-1s and international expansion. The upshot is a higher chance of choppy price action as revenue expectations reset first, and profitability expectations catch up later.
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