Home / Business and Economy / Hims and Hers Misses Q2 Revenue Targets Amid Telehealth Crackdown
Hims and Hers Misses Q2 Revenue Targets Amid Telehealth Crackdown
4 Aug
Summary
- Hims and Hers Health missed Q2 revenue estimates
- Weakness in wholesale business due to FDA crackdown on telehealth
- Subscriber growth slowed compared to previous quarter
In the second quarter of 2025, Hims and Hers Health, a leading telehealth company, reported financial results that fell short of Wall Street's expectations. The company's revenue for the quarter reached $544.8 million, missing the average analyst estimate of $551.6 million.
The primary driver behind Hims and Hers' underperformance was weakness in its wholesale business, which represents non-prescription product sales to retailers. This segment saw a 10% year-over-year decline in quarterly sales, reaching $7.95 million.
The company's struggles can be attributed to a recent crackdown by the U.S. Food and Drug Administration (FDA) on telehealth firms offering "personalized" versions of semaglutide, the active ingredient in the weight-loss drug Wegovy. Novo Nordisk, the manufacturer of Wegovy, has characterized these mass personalization efforts as illegal.
Despite the challenges, Hims and Hers did see some positive developments. Subscriber numbers increased by 31% year-over-year, reaching 2.44 million in the second quarter. However, this growth rate was lower than the 38% increase recorded in the first three months of the year, indicating a potential slowdown in the company's momentum.
Looking ahead, analysts have questioned whether Hims and Hers will be able to sustain its growth trajectory following the FDA's crackdown on telehealth companies' personalized drug offerings. The company's ability to navigate this regulatory landscape and diversify its business model will be crucial in determining its future success.
