Hims & Hers $HIMS ( ▲ 6.13% ) is trying to convince investors it’s more than a weight-loss drug reseller, but the market isn’t fully buying it. The telehealth company’s GLP-1 offerings helped fuel explosive growth, yet they’ve also triggered legal scrutiny and a brutal stock decline.
Shares are down more than 50% this year and now sit barely above levels from before the company entered the booming weight-loss market.
The drug that built the hype
GLP-1 medications, popularized by blockbuster obesity treatments, became a major revenue driver for Hims & Hers. At one point, the company reported about $420 million in GLP-1 sales during the first half of 2025, roughly 38% of total revenue for that period.
Executives now stress that the majority of revenue comes from other services and that only a small fraction of the platform’s 2.5 million subscribers use compounded GLP-1 drugs.
CEO Andrew Dudum emphasized that the business has always been broader than a single treatment category. Investors, however, remain fixated on the segment that drove the stock’s meteoric rise.
Regulators and lawsuits pile on
Complicating matters, the company disclosed it is under investigation by the SEC over public statements related to compounded semaglutide products. Regulators have requested documents tied to disclosures about the business and its partnerships.
Legal pressure doesn’t stop there. Novo Nordisk $NVO ( ▼ 0.65% ) , the pharmaceutical giant behind leading branded GLP-1 drugs, has filed a patent infringement lawsuit. The Department of Justice may also be reviewing aspects of the business.
Taken together, the scrutiny has turned what once looked like a growth engine into a source of uncertainty.
From moonshot to reality check
Hims & Hers’ GLP-1 strategy initially positioned the company as a disruptive force in digital healthcare. But as regulatory risks surfaced, investors began reassessing whether the growth was sustainable.
The result has been a dramatic round trip: a surge fueled by weight-loss demand followed by a steep decline as legal clouds gathered.
For now, the company faces a difficult task. It must prove that its long-term story doesn’t depend on a single controversial product line.