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ES
Hims & Hers Shares Fall as GLP-1 Costs Widen Q2 Loss
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Hims & Hers Health shares dropped more than 6% in after-hours trading after the telehealth company reported a wider-than-expected second-quarter loss, as rising costs tied to branded GLP-1 weight-loss drugs pressured profitability.
Hims said its transition toward branded GLP-1 weight-loss treatments resulted in $4.6 million in restructuring costs during the quarter.
The updated outlook includes revenue from Eucalyptus, the Australian digital health company Hims agreed to acquire in February.
Growth in Hims’ GLP-1 weight-loss business and international operations has helped strengthen revenue and subscriptions, but the expansion is also weighing on gross margins.
The telehealth provider is also expanding its personalized healthcare capabilities through investments in diagnostics, laboratory infrastructure and peptide treatments.