By Kelly Cloonan

Hims & Hers Health swung to a loss in the first quarter as the company's move to rejigger its weight-loss offerings drove up costs.

The telehealth platform also warned it could face further profit pressures ahead, citing heavier investments in areas such as international expansion and technology.

Shares slid 12.5% to $25.50 in after-hours trading. Through market close, shares were down more than 10% year to date.

In March, Hims & Hers started selling Novo Nordisk's GLP-1 medications, including its Wegovy obesity drug in injection and pill forms. The company said it would now focus on selling Food and Drug Administration-approved medications for weight loss, and would only offer compounded semaglutide on a limited scale.

The move marked a shift for Hims & Hers, which gained popularity when it was allowed to mass produce compounded versions of GLP-1s when Novo's Wegovy and Eli Lilly's Mounjaro and Zepbound were in short supply. Since those shortages ended, Novo and Lilly took legal actions to try to limit the lower-cost, compounded versions, given they came at the expense of sales of the branded drugs.

Hims & Hers's weight-loss pivot resulted in about $33 million in restructuring costs in the first quarter, primarily consisting of write-downs related to the company's compounded GLP-1 supply chain, which now faces risk of obsolescence, Chief Financial Officer Yemi Okupe said during a call with analysts.

"We made a deliberate strategic pivot within our weight-loss specialty, one that we knew were to create near-term financial noise," Okupe said, adding the company is confident it made the right move as early demand signals point to a broader reach with consumers.

Okupe also warned that the company's profit struggles will likely continue in the near term as it invests more heavily in several areas, including on efforts to expand further internationally and on technology like at-home blood collection services and an artificial intelligence-supported chatbot.

"To reach our longer-term aspirations we are undergoing what is likely to be a transition period that may create volatility in GAAP results and ratios as reflected in our first quarter results," Okupe said.

The company now forecasts a return to net income profitability in 2027. It continues to target at least $6.5 billion in revenue in 2030.

Hims & Hers posted a first-quarter loss of $92.1 million, or 40 cents a share, compared with a profit of $49.5 million, or 20 cents a share, a year earlier. Analysts polled by FactSet expected earnings of 3 cents a share.

Revenue rose 4% to $608.1 million, compared with analyst estimates of $616.8 million.

The San Francisco-based company had 2.6 million subscribers at the end of the period, up 9% from the year-ago quarter. Average monthly revenue per subscriber was $80, down from $85.

For the full year, the company raised its revenue guidance and cut its profit outlook. Hims & Hers now expects full-year revenue of $2.8 billion to $3 billion, up from its prior guidance of $2.7 billion to $2.9 billion. It now projects adjusted earnings before interest, taxes, depreciation and amortization of $275 million to $350 million, down from a prior range of $300 million to $375 million.

For the current quarter, the company forecast revenue of $680 million to $700 million, compared with analyst estimates of $643 million. It expects adjusted Ebitda of $35 million to $55 million, compared with Wall Street's forecast of $69.6 million.

Both outlooks exclude any potential contributions from the company's proposed $1.15 billion acquisition of digital health company Eucalyptus, which it said it expects to close in the middle of 2026.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

May 11, 2026 18:56 ET (22:56 GMT)

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