Hims & Hers shares plunge 28% on concerns over weight loss business, margins

The Hims app arranged on a smartphone in New York, US, on Wednesday, Feb. 12, 2025. Shares of Hims & Hers Health fell 28% on Tuesday, a day after the telehealth company released fourth-quarter results that disappointed on gross margin and sparked concerns about the future of its weight loss business. Hims & Hers reported $481 million in revenue for the quarter, up 95% from $246.6 million during the same period last year. Net income climbed to $26.01 million, or 11 cents per share, from $1.25 million, or 1 cent per share, a year prior. But the company's gross margin, or the profit left after accounting for the cost of goods sold, was 77%, disappointing analysts who were expecting 78.4%, according to StreetAccount. In the company's quarterly call with investors on Monday, CFO Yemi Okupe said the scaling of the company's GLP-1 offering and its strategic pricing options were to blame. Hims & Hers in May started prescribing compounded semaglutide, the active ingredient in Novo Nordisk' ... Read full article.