Hims & Hers Projects Strong Growth Despite GLP-1 Market Shift

Online health and wellness company Hims & Hers reported impressive fourth-quarter earnings and provided an optimistic outlook for 2025, despite recent changes in the GLP-1 weight loss drug market. The company's robust performance and strategic investments in personalized healthcare solutions signal a significant shift in the telehealth landscape.

Record-Breaking Financial Performance

Hims & Hers delivered exceptional financial results for 2024, with revenue soaring to $1.48 billion, a 69% year-over-year increase from $872 million in 2023. The company reported a profit of $126 million, a dramatic turnaround from the $25 million net loss in the previous year. Fourth-quarter revenue reached $481 million, representing a 95% increase from the same period in 2023.

The company's subscriber base grew to 2.2 million, a 45% increase from the previous year. Adjusted EBITDA for 2024 was $177 million, more than tripling the $50 million reported in 2023. Despite these strong results, shares of Hims & Hers dropped 19% in after-hours trading, reflecting investor concerns about shifts in the GLP-1 market.

Navigating the Changing GLP-1 Landscape

The Food and Drug Administration's recent announcement that semaglutide, the active ingredient in popular weight loss drugs Ozempic and Wegovy, is no longer in short supply has significant implications for Hims & Hers' weight loss business. This development means that compounding of semaglutide will no longer be permitted under current regulations.

In response, Hims & Hers is adapting its weight loss offerings. CFO Yemi Okupe stated that the company's "steady state weight loss offering" will primarily consist of evolving oral-based solutions and liraglutide, a generic version of Novo Nordisk's diabetes drug. The company also plans to offer personalized doses of semaglutide "for the subset of consumers for whom it is a clinical necessity."

Despite these changes, Hims & Hers projects its weight loss business to generate $725 million in revenue in 2025. This figure excludes commercially available dosages of semaglutide, which the company will discontinue after the first quarter.

Strategic Investments in Personalized Healthcare

Hims & Hers is making significant investments to drive its personalized healthcare strategy. The company recently acquired at-home lab testing company Trybe Labs, which will enable it to offer blood draws and lab testing services. This acquisition is expected to broaden the company's ability to provide personalized treatments, supplements, and medications across various clinical categories.

Additionally, Hims & Hers purchased a U.S.-based peptide facility in California to expand its domestic supply chain. This acquisition positions the company to explore advancements in peptide innovation, including areas such as preventive health, metabolic optimization, and cognitive performance.

CEO Andrew Dudum emphasized the company's vision of building "the next generation healthcare platform" that leverages personalization and technology to deliver affordable, on-demand, high-quality care. As the company scales, it plans to increase investments in technology to support more efficient decision-making tools for providers and enhance customer experiences through AI capabilities.