Hims & Hers investors run for the hills despite earnings beat and cheery outlook

Hims & Hers Health, the tele-pharmacy known for selling copycat versions of popular weight-loss drugs, tanked in aftermarket trading despite largely meeting Wall Street expectations and giving upbeat guidance.

The company reported earnings per share of $0.12, edging above the $0.11 analysts polled by FactSet were expecting. It also reported $481.1 million in revenue, compared to the $470.3 million analysts expected.

Hims & Hers said it expected revenue for the first quarter of 2025 to be between $520 million and $540 million, compared to the $497 million analysts had penciled in. This was the fifth straight quarter that Hims & Hers turned a profit, and 2024 marked its full profitable year.

Still, investors sent the company’s stock down more than 15% in after-hours trading.

Investors are likely still spooked by the news that the Food and Drug Administration declared that semaglutide, the active ingredient in Novo Nordisk’s Ozempic and Wegovy, is no longer in a shortage, limiting Hims & Hers’ ability to make copycat versions.

Removing it from the shortage list means Hims & Hers can no longer sell exact copies of the drug; it’s only allowed to if it adjusts the drug. Hims & Hers CEO Andrew Dudum said in a Friday statement that the company plans to continue selling compounded semaglutide in the form of “personalized treatments.”

Hims & Hers said in its letter to shareholders that it can sell “personalized titration schedules and dosage levels that are not essentially copies of commercially available medications” even with a shortage in place.

But in a footnote repeated three times in the letter, the company said the FDA move “could constrain our ability to continue providing access to compounded semaglutide on our platform once our current inventory has been sold.”

The company did not explicitly report how much it made selling weight-loss drugs, which it started doing in May 2024. It did say that revenue from non-GLP-1 drugs was $1.2 billion of the $1.4 billion it brought in 2024, suggesting it sold roughly $200 million in copycat weight-loss drugs last year.