Hims & Hers Health reported fourth-quarter results that beat analysts’ expectations, but the company’s stock sank in extended trading. The company’s revenue increased 95% from a year earlier to $481 million, beating estimates.
However, investors were focused on the disappointing gross margin of 77%, which fell short of the expected 78.4%. This led to an 18% drop in Hims & Hers shares in extended trading.
The company had started prescribing compounded semaglutide, a key component of Novo Nordisk’s blockbuster GLP-1 medications Ozempic and Wegovy, in May. But it now plans to stop offering the compound version due to potential regulatory issues.
Hims & Hers expects its weight loss offerings to generate at least $725 million in revenue in 2025, excluding contributions from compounded semaglutide. The company also reported strong growth in non-GLP-1 products, with revenue increasing by 43% to $1.2 billion for the full year.
The FDA has announced plans to take action against compounders, including Hims & Hers, for violating regulations within the next 60 to 90 days. As a result, compounded semaglutide will likely no longer be offered on the platform after the first quarter.
Despite this, the company remains confident in its ability to democratize access to high-quality care across various specialties. Net income climbed to $26.01 million, or 11 cents per share, from $1.25 million, or 1 cent per share, a year prior.
Source: https://www.cnbc.com/2025/02/24/hims-hers-health-hims-q4-earnings-2024.html