Hims & Hers Q2 revenue drop shakes stock—Hims crashes 11% after first-ever revenue decline, is the weight-loss drug hype finally fading?

Hims & Hers Health (NYSE: HIMS), the fast-growing telehealth company known for its personalized care plans and buzzy entry into the weight-loss market, saw its stock drop by over 11% after reporting second-quarter 2025 earnings. While revenue jumped 73% year-over-year, the company missed Wall Street expectations and posted its first-ever sequential revenue decline, raising questions about the future of its GLP-1 obesity drug business.

Why did Hims & Hers stock fall after earnings?

Despite its rapid annual growth, Hims & Hers posted Q2 revenue of $544.8 million, missing the analyst estimate of $552 million. The real concern? Revenue dropped from $586 million in Q1, marking the first quarter-over-quarter decline since the company went public.

The stock currently trades at $63.35, regaining some ground after hitting an intraday low of $54.82. Despite opening at $64.00, it remains volatile, with an intraday high of $65.54.


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The market reacted sharply to the company's revenue miss—$544.8 million vs. $552 million expected—even though earnings per share beat expectations and subscriber numbers remained strong. Most of the company’s revenue stemmed from its GLP-1-based obesity and diabetes treatments, a booming but increasingly scrutinized business segment.

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With regulatory pressures, lawsuits from Novo Nordisk, and tighter FDA rules on compounded semaglutide, Hims faces headwinds in its fastest-growing segment. However, with a market cap of over $6.5 billion, a P/E ratio of 39.93, and forward-looking confidence via its Zava acquisition, the company is still betting big on growth in both the U.S. and Europe.

• Current Price: $63.35
  
  
• Day Range: $54.82 – $65.54
  
  
• Open: $64.00
  
  
• Market Cap: $6.56 Billion

• P/E Ratio: 39.93
  
  
• Volume: 35.5M

Investors were caught off guard, as the slowdown came amid soaring demand for weight-loss drugs like semaglutide, a compound similar to the active ingredient in Wegovy and Ozempic.

Earnings beat estimates, but Wall Street stays cautious

On the profit front, Hims reported an adjusted EPS of $0.19, beating the Street’s expectation of $0.15. However, the revenue miss overshadowed this earnings win.

Investors appeared more concerned about the underlying business momentum, particularly in the obesity treatment space, which has been a major driver of Hims' recent growth.

Is the GLP‑1 weight-loss business at risk?

Hims’ biggest growth story in recent quarters has been its expansion into GLP-1 weight-loss treatments, which brought in around $190 million in Q2 alone. However, a few red flags have emerged:

• Regulatory uncertainty: With the FDA rolling back flexibility on compounded versions of semaglutide, questions are mounting about how long Hims can rely on this segment for revenue.
  
  
• Legal challenges: The company recently ended its supply relationship with Novo Nordisk, the maker of Wegovy, and is now facing lawsuits over how it marketed compounded alternatives.
  
  
• Competitive pressure: Big players like Eli Lilly and Novo Nordisk are dominating the branded drug market, making it harder for telehealth companies offering generics to compete on pricing and trust.
  
  

Hims keeps full-year guidance intact—thanks to international expansion

Despite the Q2 shortfall, Hims & Hers stuck to its full-year outlook. The company reaffirmed its 2025 guidance of $2.3 billion to $2.4 billion in revenue and $295 million to $335 million in adjusted EBITDA.

A big reason? The Zava acquisition, a European telehealth platform, which is expected to contribute around $50 million in new revenue this year. This suggests Hims is betting heavily on international growth to offset some of its domestic uncertainty.

Subscriber growth remains strong despite volatility

One bright spot in the report was Hims' growing subscriber base. The company now serves over 2.4 million active subscribers, with nearly 70% enrolled in personalized treatment plans that span weight loss, hair care, sexual health, and mental wellness.

CEO Andrew Dudum emphasized that the company is leaning deeper into its long-term strategy of personalized digital healthcare, aiming to build loyalty and customer lifetime value across multiple product categories.

What investors should watch going forward

If you’re following Hims & Hers stock or investing in telehealth companies focused on the obesity drug boom, here are four key things to monitor:

1. Future of compounded GLP-1s: Regulatory and legal outcomes could limit Hims' ability to sell compounded semaglutide at scale.
   
   
2. Profitability trends: Will margins hold up as more competition floods the market and Hims scales its personalized offerings?
   
   
3. Subscriber growth and retention: Continued engagement in non-weight loss categories will be key to long-term stability.
   
   
4. Zava integration: The success or failure of this acquisition could make or break Hims’ international ambitions.
   
   

Hims still growing, but cracks are showing

Hims & Hers Health has come a long way as a digital-first wellness brand with a bold strategy around weight-loss drugs and personalized healthcare. But the 11% stock drop shows investor sentiment is shifting, especially as its flagship obesity business faces regulatory hurdles and supply uncertainty.

For now, the company’s strong year-over-year growth and firm 2025 guidance offer some reassurance. But with rising competition, tighter FDA rules, and legal pressure, Hims will need to prove that its success isn’t just tied to a single product wave—but a durable, trusted digital care ecosystem.

FAQs:

What caused Hims & Hers stock to fall 11% after Q2 earnings?
The company missed revenue estimates and saw its first-ever sequential drop in sales.

Is the Hims weight-loss drug business facing trouble in 2025?
Yes, due to FDA scrutiny and legal issues around compounded semaglutide.