Hims Reports $33M Loss Amid Shift to GLP-1 Weight Loss Drugs

Hims & Hers Health Inc. (NYSE: HIMS), the parent company of Hims and Hers, reported a $33 million non-cash impairment charge in the second quarter of 2024. The charge stems from its strategic shift toward GLP-1 weight loss medications, including Zepbound and Wegovy.

The impairment reflects a reassessment of the company’s assets in light of its evolving business model, which now prioritizes GLP-1 drugs over its traditional telehealth and prescription services.

For the quarter ended June 30, 2024, Hims reported total revenue of $227.7 million, a 10% decrease compared to $253.7 million in the same period last year. The decline was attributed to lower demand for its core telehealth and prescription services, as well as increased competition in the weight loss market.

Despite the revenue drop, Hims highlighted growth in its GLP-1 business, which includes prescription fulfillment and related services. The company stated that GLP-1 revenue contributed significantly to its overall performance, offsetting some of the declines in other segments.

Hims also reported a net loss of $42.3 million for Q2 2024, compared to a net loss of $24.1 million in Q2 2023. The company attributed the wider loss to the impairment charge, as well as higher operating expenses.

In a statement, Hims CEO Andrew Dudum emphasized the company’s commitment to its GLP-1 strategy, stating,

‘Our pivot to GLP-1 weight loss medications is a critical step in positioning Hims as a leader in the rapidly growing obesity treatment market. While we face short-term challenges, we are confident in the long-term potential of this strategy.’

The company’s stock price reacted negatively to the news, falling nearly 5% in after-hours trading following the earnings report.