Hims & Hers Earnings: GLP-1 Scrutiny & Weight Loss Future

The telehealth company Hims & Hers Health Inc. Is navigating increased scrutiny surrounding compounded versions of GLP-1 medications, drugs initially developed for treating type 2 diabetes but increasingly used for weight loss. The company addressed these concerns during its fourth-quarter 2025 earnings call on February 23, 2026, as reported by STAT News and other financial outlets.

The rise of Hims & Hers has been closely tied to the demand for these compounded GLP-1s, offering a more accessible, though potentially less regulated, alternative to branded weight-loss drugs when supply has been limited. However, this rapid growth has attracted attention from regulatory bodies, raising questions about the safety and efficacy of these compounded medications. CEO Andrew Dudum acknowledged the increased scrutiny, but emphasized the company’s belief in the durability of its weight-loss business, stating, “We believe there’s a really durable weight business, even if you think you’re kind of in a draconian scenario of compounding GLP-1s not being there.”

The company reported December 31, 2025, a subscriber base of 2.5 million, an increase of 282,000 from December 31, 2024. Total revenue for the full year 2025 reached $2.35 billion, up from $1.5 billion in 2024. Despite the revenue growth, net income remained relatively flat, at $128 million. Looking ahead, Hims & Hers projects revenue between $2.7 billion and $2.9 billion for 2026.

The company’s financial performance is heavily influenced by the GLP-1 market. Earlier in 2025, Hims & Hers experienced triple-digit growth rates fueled by the popularity of compounded GLP-1s. However, this growth is now facing headwinds due to regulatory concerns and potential supply chain disruptions. Investors are keenly watching how Hims & Hers will navigate these challenges and whether the company can maintain its momentum.

A key area of investor focus is the company’s strategy for diversifying beyond GLP-1 related medications. The earnings call likely addressed these diversification efforts, as well as updates on the regulatory landscape and supply chain availability. The outcome of these factors will significantly impact the company’s future projections and its ability to sustain growth.

The increased scrutiny on compounded GLP-1s stems from concerns about quality control and consistency. Compounding pharmacies create customized medications by combining ingredients, and while this can be beneficial in certain situations, it also introduces potential risks if not done properly. The FDA has been increasing its oversight of compounding pharmacies in recent years, and this trend is likely to continue, particularly in the context of rapidly growing demand for weight-loss drugs.

The situation is further complicated by legal challenges. Novo Nordisk, the manufacturer of the branded GLP-1 drug Wegovy, has filed lawsuits related to compounding, adding another layer of uncertainty to the market. These legal battles could have significant implications for the future of compounded GLP-1s and the companies that rely on them.

The company’s ability to adapt to these changing circumstances will be crucial. Investors are looking for evidence that Hims & Hers is proactively addressing the regulatory concerns, diversifying its product offerings, and securing a reliable supply chain. The results of the fourth-quarter earnings report and the company’s guidance for 2026 are expected to provide valuable insights into its future prospects.

The broader implications of this situation extend beyond Hims & Hers. The debate over compounded GLP-1s highlights the challenges of balancing patient access to innovative medications with the need for robust regulatory oversight. As demand for these drugs continues to grow, it will be essential to find a sustainable path forward that ensures both safety and affordability.